Aviva launches insurance policy for salary sacrifice car schemes

Aviva is launching an insurance policy for organisations which operate an employee salary sacrifice car scheme.

The offering, which has been modelled on Aviva’s Fleetwise commercial insurance product for corporate fleets,  has been developed following feedback from leasing organisations, brokers and employers.

Through a salary sacrifice car scheme, the employer receives the vehicle from the leasing firm but only pays net of tax rather than full price. The saving is passed on to the employee, who receives a new car at a better price than if they went independently to the leasing firm.

The insurance product has no limit on the number of cars that can be covered by the policy.

Mark Keavney, development manager – commercial product development at Aviva, said: “In the current economic climate, employers are looking for new ways to reward staff, and flexible benefits such as dental care, nursery vouchers and salary sacrifice vehicle schemes offer ways to retain staff without raising business overheads.

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“Aviva has conducted extensive research to understand the requirements of businesses for a successful salary sacrifice car scheme to be implemented. Although flexible for any size or type of business, the scheme is likely to be most attractive for organisations with large fleets, whether FTSE-listed, privately-owned or local authorities.”

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