Mileage and Insurance

Some members, depending on the type of position they are in, are “required Upon hire to have a car at their disposal”.  The auto allowance  refers to those people “who are required  as a condition of employment to have a car upon hire”. 

There are others who may from time to time, be required to use their car for work purposes but are “NOT REQUIRED to have a car upon hire”.  These individuals can claim the basic kilometer rate (this can be claimed going site to site, if required by the employer)  AND he/she can also claim the difference between private and business insurance upon production of a premium invoice receipt – which should show the difference between private and business insurance.  A word or two of caution here though:  (1) the employee should verify with his/her manager that they are required occasionally to use their own private vehicle before purchasing business insurance.  The employee should advise the manager that the reason for the inquiry is for insurance purposes and that the employee will be claiming the difference as per Article 36.02 of the Agreement.  If the manager does not provide the confirmation that the employee is expected to use their private vehicle from time to time then the employee should use their own discretion if using their private vehicle for work purposes.  (2)  When purchasing business insurance, the employee should advise the insurance company if he/she will be transporting clients/patients of the employer, as part of their work.  This information may be integral for insurance purposes and may indeed affect the premium rate.