Insuring your tax free bike

If you obtain a bike package through Cyclescheme you must insure it during the hire period. Your insurance policy needs to cover the bike for trips to, from and whilst at work and also for leisure riding. As a consequence, when you sign your hire agreement you are agreeing to insure the bike for the duration of the hire period.

Although it might seem strange for the onus to be on you to insure a bike that is owned by your employer this arrangement is in place to protect you: In the event of theft or damage during the hire period you will need to settle all outstanding payments from your net salary i.e. without any tax benefits.

The everyday consequences of not having insurance cover are magnified by the savings made through the scheme and the penalties imposed on early leavers: The government's guidelines on this topic are as follows:

Employees leaving the scheme will pay outstanding amounts from net pay i.e. they will not benefit from any tax breaks

In reality the risks of losing a bike to theft are in proportion to the securing method and type of lock. You must used an insurance company (Sold Secure) approved lock to be covered.

Cyclescheme recommend two solutions to insure the bike package:

• First of all check any home contents policies that are in place to see if they cover the bike for trips to, from and whilst at work. It is also very important to check that the existing policy covers the value of the bike as many standard policies only extend to £500
• Secondly, if you have a specialist bike or no usable home contents policy then contact Cycleguard (02476 851000 www.cycleguard.co.uk) to arrange cover for your bike. Cyclescheme has been working with Cycleguard for the last two years and we can now offer special coverage for bike use to and from work and, most importantly, also whilst at work.

To get your claim settled in good time Cyclescheme highly recommend the free use of Fetch (0870 066 0621 www.fetch.co.uk) who will handle your claim and get it sorted out really quickly. What's more, Fetch will allow you to collect your replacement bike from the store you bought it from or a store of your choice if you bought it elsewhere or have moved. This is vitally important as receiving a bike in a box robs you of good service and can invalidate the manufacturer's warranty.

Fetch also offer a free legal advice line in the unlikely event that you are involved in an accident

PLEASE CONTACT FETCH IMMEDIATELY IF YOU HAVE A CLAIM SO THEY CAN HELP YOU FROM THE OUTSET.