NFU Mutual backtracks in insurance row

LEADING farmers' insurance firm NFU Mutual has been forced to backtrack over its advice to policyholders on TT insurance.

Confusion reigned when NFU Mutual claimed race organisers ACU had got it wrong after some landowners at dangerous spots on the course were told they would not be covered by the race promoter's insurance if they allowed spectators on their land.

An agent for the insurance firm said he had been bombarded with calls from concerned farmers and insisted that all landowners would be covered by ACU's insurance and would only need to extend their own insurance cover if they charged people to watch the races from their land.

To add to the confusion, a letter sent by ACU to NFU Mutual suggested that ACU's indemnity cover would apply to all those landowners and property owners on the course, irrespective of whether they had agreed to being in a prohibited area.

ACU subsequently said that letter was inaccurate.

And now NFU Mutual, too, has 'clarified' its position – saying landowners who refuse to accept a prohibited area could invalidate their own insurance cover as well as not being covered by the race organiser's insurance.

Tim Price, NFU Mutual spokesman, said: 'Following discussions with the TT's insurance brokers, we can clarify the insurance position for landowners.

'To receive protection under the race organisers' liability cover landowners must co-operate and accept the designation of any restricted or prohibited areas as have been so designated after specialist risk assessments have been undertaken.

'We strongly encourage any NFU Mutual policyholders to do this. If they have any concerns, independent legal advice should be sought.

'If they do not accept these designations, as well as not having the benefit of the organisers' cover, they also may invalidate their own insurance cover with us.

'Any landowner who refuses to accept the prohibited or restricted designation and then invites spectators into these areas, whether for payment or a donation to charity, is likely to be considered to be acting recklessly and may therefore invalidate their own public liability insurance in the unfortunate event of a spectator being injured in one of these areas.'

He added: 'I can however confirm that in all other areas, provided that landowners are not making a charge for spectators to use their land, then their NFU Mutual public liability policies will operate as normal.

'In the event of any commercial activity being undertaken that would not form part of a policyholder's normal business they need to specifically advise us and agree additional liability coverage.'