Insurer Aviva will be offering insurance policies tailored for the specific needs of both public and private sector employees who lease company cars. The popularity of the new scheme is predicted to be high due to the inherent tax benefits.
Employees will be eligible to insure a company car at a lower car insurance rate. This will be facilitated by the company leasing the car at a pre-tax price and then passing the savings on to the employee.
Car repayments will be taken directly from the salary of the employee under the new scheme. This means that both income tax and National Insurance payments can be reduced for the employee as well.
The economic downturn has led to a resurgence in popularity for these types of schemes. Salary exchange programmes are highly beneficial for UK consumers in times of economic instability. Employers can also supplement their employee benefit packages by instituting such schemes as well.
Larger organisations may be particularly interested in the new block car insurance policy from Aviva. The insurer does not limit the quantity of cars that may be included in each individual policy, so large fleets of company cars can be accommodated with no limitations.
Aviva plans to have the new block car insurance policy scheme in place before the new year.
Aviva can trace its history back to the formation of the Norwich and Commercial Unions in 1791 and 1861 respectively. The Aviva name was adopted in 2002 after the company was created by a merger between CGU plc and Norwich Union two years prior. The insurance group serves approximately 53 million customers on a global scale and employs around 46,000 staff members.