The Department for Transport has just announced that the requirement for financial standing for HGV and PSV operators increased from 1st January 2010.

Standard National and Standard International licence holders will need to be able to prove that they have access to

• £8,100 for the first vehicle (previously £6,200) and
• £4,500 for each subsequent vehicle on the licence (previously £3,400)

The requirements for restricted licences remain unchanged at £3,100 for the first vehicle and £1,700 for each subsequent vehicle.

Financial standing is one of the 3 main criteria taken into account when operators licences are issued. The others are professional competence and good repute. If any of these are lost then the operators licence will have to be revoked.

Why is Financial Standing Taken into Account when Issuing Operators Licences?

Financial standing is an essential part of operator licensing because a need to replace worn tyres or defective brakes should never be put off due to financial pressures. The Traffic Commissioner has the power to request that an operator proves its financial standing at any time, although in practice it is usually only asked for if an operator is called to a public enquiry or at a five yearly review of the operators licence.

 

If you are a haulage operator and need further information about haulage insurance (whether it is for a single vehicle or a fleet insurance) call us now on 01438 723755.