Social conscience or computer says no?

A very upset broker contacted me as follows:

Allan, I have just had a client call who is an apprentice chef and advise that their privately rated Motor Vehicle, which is insured through [insurer name withheld], could be used on an occasional basis to deliver meals as the restaurant that he works at is closed and are only doing deliveries or pick ups.

I endorsed the policy to show the vehicle is used for business use and a small additional charge was applied. It should be noted that the [insurer’s] system has a drop down box of occupations that are unacceptable – one of which is fast food delivery. I sent a separate email to our BDM and advised that I had taken this action and did not consider the occasional deliver of a meal to be fast food delivery.

Two weeks later, I was advised in no uncertain terms that this usage would not be covered. I think this is something that all brokers need to be aware of as there will be more employees using their vehicles in this manner in these times.

Speaking with the broker, he advised that 80% of his book of motor insurance is with this insurer.

I appreciate that fast food delivery is a higher risk than private use, but for the short term that hopefully this crisis will affect Australia, requiring this change in use, it would be great to think that our industry could help an insured keep their job and keep the restaurant open.

We need to factor in that there are fewer cars on the road, and with GPS and it being for local deliveries the risk is manageable.

If you were the underwriter what would you do: take a “we are all in this together” approach and help the insured during the crisis, building good will for your company brand and the insurance industry or follow the strict underwriting guidelines?