MHS Lease Vehicle Scheme by cuiliqing


									MHS Lease Vehicle Scheme

MHS Lease Vehicle Scheme Instructions


Part 1 Introduction

Part 2 Scheme Funding and Participation

      2.1 The MHS Lease Vehicle Scheme
      2.2 Contract Term
      2.3 Funding
      2.4 Minimum mileage criteria
      2.5 Age Criteria
      2.6 Contact
      2.7 Application
      2.8 Participation
      2.9 Driver Training

Part 3 Making your Selection

      3.1 List of available vehicles
      3.2 Extras
      3.3 Which Vehicle should I choose
      3.4 Driver Contribution
      3.5 Taxable Benefit Implications

Part 4 Ordering your Vehicle

      4.1 Order Process
      4.2 Confirmation Signature
      4.3 Disposing of your existing Vehicle

Part 5 Taking delivery of your new Vehicle

      5.1 General
      5.2 Handing over your old Vehicle

Part 6 A guide to leasing arrangements

      6.1 Choice of Vehicle
      6.2 Lease Period
      6.3 Service/Maintenance
      6.4 Accident Management

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      6.5 Insurance Cover
      6.6 Breakdown Arrangements
      6.7 Warranty
      6.8 Forms and Instructions
      6.9 Windscreen Cover
      6.10 Replacement Odometer/Maintenance Responsibilities/Excess Wear
      and Tear Definitions

Part 7 Running your Vehicle

      7.1 Use of Vehicle
      7.2 Mobile Phones
      7.3 Smoking in Lease Vehicles

Part 8 Accident Procedure

      8.1 What do you do if you are involved in an accident
      8.2 Legal Responsibilities following an accident
      8.3 MHS Accident Book
      8.4 Vehicle Repair Procedure
      8.5 Minor Replacement/Emergency Repairs
      8.6 Emergency Hospital Treatment

Part 9 Theft/Attempted Theft and Vandalism

      9.1 Theft of your Vehicle
      9.2 Theft/attempted theft from your Vehicle
      9.3 Theft of mobile phone
      9.4 Car Security Advice

Part 10 Replacement Vehicle Arrangements

      10.1 Short-term Car Hire

Part 11 Changes to Personal Circumstances

      11.1 Leaving the Scheme
      11.2 Maternity Leave
      11.3 Change of Duties
      11.4 Change of name/address details/transfer requests

Part 12 Responsibilities and the Law

      12.1 Legal Assistance
      12.2 Licensing Requirements
      12.3 Seat Belts
      12.4 Prohibition Notices issued under the Road Traffic Acts

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      12.5 Penalties and fines
      12.6 Production of Driving Documents

Part 13 Claiming and Accounting for Mileage

      13.1 Motor mileage allowance for business travel

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Part 1 - Introduction

1.1   The MHS decided to introduce a Lease Vehicle Scheme to replace the
      Private User Scheme following a thorough review and appraisal of the
      alternatives. The review showed that the Private User Scheme was not
      providing best value for the MHS and that the most appropriate means of
      providing higher mileage business drivers with a car for business and
      private use would be through leasing arrangements. Under such schemes
      a company provides vehicles, while retaining ownership, for their use by
      another party in return for payment.

1.2   Employees aged between 21 and 65 travelling in excess of 8,000 (this
      figure will be subject to periodic review) business miles per annum are
      eligible to apply for the scheme.

1.3   MHS Lease Vehicle Scheme cars, which are defined as official MHS
      property, are made available to eligible drivers for private as well as
      business use, in return for a monthly contribution deducted from salary.
      The driver contribution covers:

      •   insurance (including spouses),
      •   accident management,
      •   vehicle excise licence,
      •   servicing and repairs and,
      •   breakdown.

1.4   Lease cars are funded from regional and departmental budgets. Vehicles
      are retained by drivers for three years. At the end of the contract, drivers
      are usually given the option to purchase the car at the current market
      value from the leasing company.

1.5   Staff who meet the criteria for the MHS Lease Vehicle Scheme and wish
      to be considered for the scheme should contact Auto Intelligence Limited
      for an application form.

1.6   Before applying for an MHS Lease Vehicle Scheme car it is important to
      note that the car would normally be retained by the driver for three years
      provided that the driver remains in a post with an ongoing requirement for
      a vehicle for business use, i.e. the driver continues to meet the criteria for
      entry to the scheme. If the driver changes posts and would no longer
      meet the criteria for the scheme or ceases to be employed by the MHS
      their vehicle will be reallocated to a member of staff who is waiting to join
      the MHS Lease Vehicle Scheme until the end of the lease. The MHS
      driver must notify their line manager / director of any such changes. The
      driver must also advise Auto Intelligence Limited of the move for fleet
      planning purposes. If it is not possible to reallocate a vehicle the lease will
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       be terminated and the Region or Department for which the driver worked
       will pay any termination costs.

1.7    It is important to note that under the new leasing arrangements MHS
       drivers have far more responsibility than under the previous Private User
       Scheme for the care and maintenance of the MHS Lease Vehicle Scheme
       vehicles. You will be expected to adhere to the conditions in the Fair
       Wear and Tear guidelines for the return condition of the vehicle.
       Pamphlets detailing the Fair Wear and Tear guidelines, as defined and
       issued by the British Vehicle Rental and Leasing Association, will be
       distributed to drivers upon entry to the scheme and can generally be
       obtained on application to Auto Intelligence Limited.

1.8    The motor industry operates on the basis of standard delivery times of 14
       weeks after an order has been placed. This is a standard time and not a
       maximum. If an order is placed with a lower volume manufacturer or for a
       particularly popular vehicle model the delivery time is very likely to be
       longer than the standard.

1.9    Form Instructions

1.9.1 If you are eligible to join the MHS Lease Vehicle Scheme and you wish to
      apply please complete the Lease Vehicle Scheme Application Form and
      return it to Auto Intelligence Limited. Please note, original signatures are
      required by Auto Intelligence Limited on all forms.

1.10   Customer Service Survey

1.10.1 If you are a current MHS Vehicle Lease Scheme driver, please could you
       take the time to complete the annual Customer Service Survey when this
       is issued to you. Your responses are valued as they help us to develop
       and improve the services we provide to you.

1.10.2 Your responses will be anonymous, but you will have the option to send
       any specific feedback, positive or negative, to the Auto Intelligence Team
       at the end of the survey. A member of the team will reply to you in due

1.11   Amendments

1.11.1 The MHS reserves the right to amend these instructions at its discretion
       and apply such amendments retrospectively.

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Part 2 - Scheme Funding and Participation

2.1 The MHS Lease Vehicle Scheme

2.1.1 The MHS Lease Vehicle Scheme is designed to offer an alternative to
      using your own car for business travel, and the increased depreciation and
      maintenance costs associated with this, and it overcomes the restriction
      on private use associated with a pool car.

2.1.2 The main expenses and problems normally associated with running a car,
      e.g. purchase, disposal, insurance, servicing, repair, road tax and accident
      management are taken care of. All this is provided in return for the
      monthly contribution appropriate to your choice of vehicle and private

2.1.3 Unlike private company schemes there is no status bar to cars. They are
      all available to anyone who qualifies for the scheme. The following pages
      give details of the scheme, and the procedures that you should follow in
      order to obtain the maximum benefit.

2.2   Contract Term

2.2.1 Vehicle contracts are typically for a three year period, although the term
      may need to be extended or reduced as operational requirement dictates.

2.3   Funding

2.3.1 Lease vehicles will be funded from regional and departmental budgets.

2.4   Minimum Mileage Criteria

2.4.1 To participate in the scheme you should expect, and have a business
      need, to complete a minimum of 8,000 business miles per annum.

2.5   Age Criteria

2.5.1 In order to satisfy insurance cover requirements, please note that the
      scheme is restricted to employees aged between 21 and 65 years of age.

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2.6 Contact

David Tomes
Auto Intelligence Limited
Silverstone Innovation Centre
Silverstone Circuit
NN12 8GX

Tel: 0845 388 0836
Fax: 0845 388 0837
Mobile: 07971 005421


2.7   Application

2.7.1 The application forms require you to confirm your estimated business
      mileage, choice of vehicle and related information including eligibility to
      drive. Contact Auto Intelligence for details.

2.8   Participation

2.8.1 Once accepted on to the scheme Auto Intelligence Limited will advise you
      on vehicle choice, order tracking and service issues.

2.9   Driver Training

2.9.1 All employees joining the Lease vehicle Scheme (LVS) will be required to
      undertake a one day driver training course unless a specified current
      advanced driving qualification is already held. Signing the application form
      for the LVS is the driver’s consent to attend the one day training course
      and any further remedial training that may be judged to be necessary by
      the training provider.

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2.9.2 The MHS has a moral, legal and financial duty to ensure the health and
      safety of its employees and those who may be affected by their
      undertaking. Health and Safety Law therefore applies to “on the road”
      work activities as well as all other work activities and the risks should be
      effectively managed within the health and safety management system.
      Driver training has been shown to provide clear benefits for employers and
      employees. The benefits include a reduction in the number of accidents, a
      reduction in maintenance and fuel costs, and an improved safety culture.

2.9.3 LVS driver training would normally be a requirement every three years.
      The qualifications which would remove the requirement for an LVS
      member to attend the training are a current pass for the Royal Society for
      the Prevention of Accidents (RoSPA) Advanced Drivers and Riders Test
      and having attained membership of the Institute of Advanced Motorists
      (IAM) within the last three years.

2.9.4 The costs of the LVS driver training courses will be met from Regional and
      Directorate budgets.

2.9.5 Should any driver training course be cancelled by the driver or the MHS
      for any reason within 21 days of the course date, the full cost of the course
      will be charged to the Regional or Directorate budget unless the course
      can be reallocated to another member of staff.

2.9.6 If an LVS member refuses to undertake the driver training course they will
      be deemed to be in breach of the conditions of the scheme. In such
      circumstances action would be taken to recover the car from the member
      of staff. The member of staff would be liable for any early termination
      costs for the lease.

2.9.7 For further information on driver training, please refer to the driver training
      section on the LVS website or contact Richard Collier at MHS

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Part 3 - Making your selection

3.1 List of Available Vehicles

3.1.1 The MHS Lease Vehicle Scheme Price List provides details of the cars
      currently available through the scheme and only those models listed are
      available. The monthly charge payable and the Manufacturers full list price
      can be used to estimate the taxable benefit. The list price amounts that
      appear on the Price List are an estimate only, as these are subject to
      constant change, and so should be used as a guide only.

3.2 Extras

3.2.1 Optional extras are not permitted on MHS cars. As vehicle choice is the
      constituent offering under this scheme it would be anticipated that there is
      sufficient scope within the vehicle choice list to obtain a vehicle to the
      necessary or required specification without optional extras.

No cost optional extras

3.2.2 There is a space on the application form for you to enter any no cost
      optional extras. These are sometimes offered with vehicles but you will
      need to specify them on the order form if you wish to receive them. The
      value of these extras may also be included in the final list price reported.


3.2.3 Please contact Auto Intelligence Limited for all tow-bar authorisations prior
      to ordering or fitting the tow-bar.

3.2.4 If you require a tow-bar on any MHS Lease Vehicle Scheme car, then you
      must pay for the purchase and fitting costs. You must also pay for any
      subsequent tow-bars costs. You should note that when you give up the
      car, you either relinquish the tow-bar, or pay for the removal and repair
      costs associated with returning the vehicle in A1 condition. In other words
      any damage that the tow-bar has caused to the vehicle must be made
      good by you, before its return to the Leasing Company.

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3.3 Which Vehicle Should you Choose?

3.3.1 Some important questions to ask yourself if this is your first MHS Lease
      Vehicle Scheme car:-

       •   are the monthly payments together with the taxable benefit
           implications within my budget?
       •   am I choosing the car for cosmetic or practical reasons?
       •   have I considered the MPG of the car? Bearing in mind that I can
           only claim back the current reclaim rate for business mileage.
       •   have I arranged a test drive to make sure that the car is comfortable
           and practical?
       •   does the car meet my business needs?
       •   is there a franchised servicing outlet for my car nearby?

3.4 Drivers’ Contributions for Private Use

3.4.1 The element making up the contribution for the driver’s private usage of
      the vehicle operated under the scheme will be based on a percentage of
      the vehicle list price. The list price may include no cost options if selected.
      On an annual basis the first 10,000 miles of private usage will be charged
      to drivers at a rate of 6% of the vehicle list price per year throughout the
      term of the lease. The annual figure for the private use contribution will
      be deducted from salary in equal monthly instalments. Thereafter, the
      annual charge for increases in private mileage over and above the initial
      annual 10,000 miles will be incrementally increased in line with the figures
      below. The vehicle list price will be determined to be the capital price
      listed on the initial leasing company quotation.

      Annual private mileage                            Annual contribution
      Private mileage up to 10,000 miles                6% of list price
      10,001 miles to 15,000 miles                      9% of list price
      15,001 miles to 20,000                            12% of list price
      20,001 miles to 25,000                            15% of list price
      25,001 miles to 30,000                            18% of list price

3.4.2 Applications which estimate a private mileage in excess of 30,000 miles
      per year will be considered on a case by case basis. In view of the high
      leasing and maintenance costs in such circumstances the driver
      contribution will be calculated on an individual basis.

3.4.3 There will be no further mileage based contribution required over and
      above the listed contribution. The level of contributions will be kept under

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       review and may be increased if the costs associated with leased vehicles
       increase to the extent that the contribution levels above do not recover the
       costs associated with private use. During the term of an individual lease
       the contributions will not be increased.

3.4.4 At the start of each financial year and when applying for a Lease Vehicle
      Scheme car drivers will be asked to estimate their annual private mileage.
      Drivers’ contributions for private use will be based on this estimate. If at
      the end of the year it is found a driver has exceeded their estimated
      private mileage by an amount which moves them into a higher band the
      additional charge due from the driver will be recovered during the following
      year. For example, in year one a driver may estimate that their private
      mileage will be 9,000. However, by the end of year one they have
      completed 11,000 private miles. The driver then estimates that their
      private mileage for year two will be 11,000. In this scenario the driver
      would contribute 6% of the list price of the vehicle in year one. Their
      actual private mileage moved them from the 6% contribution band to the
      9% band. Therefore, they would have underpaid by 3% in year one. In
      year two the driver would contribute 9% of the list price for their private
      use of the vehicle in year two plus another 3% to recover the arrears
      relating to year one. This would result in a total contribution of 12% in
      year two.

3.5 Taxable Benefit Implications

3.5.1 The HMRC classes a company vehicle as a benefit in kind which is taxable.
       In order to calculate your tax liability for this benefit, please click on the
       “Car Tax Calculator” section on the LVS website. The calculator will allow
       you to input information about your vehicle choice, private mileage
       contributions and tax rate and will then calculate the tax due. Please note
       that the calculation is for indicative purposes only and relies on the input of
       correct information. Please contact Auto Intelligence if you require
       assistance with this.

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Part 4 - Ordering your Car
4.1 Ordering Process

4.1.1 When new to the scheme and ordering your first MHS Lease Vehicle
      Scheme car, please complete the Application Form. If you have any
      queries regarding completion of the form or if you require any further
      advice please contact Auto Intelligence Limited.

4.1.2 In addition to the application form, you should also complete the “Mandate
      for release of information under Data Subject Access provisions of the
      Data Protection Act 1998”. Completion of this form is a condition of entry
      to the Lease Vehicle Scheme and authorises Auto Intelligence to carry out
      necessary driving licence checks with regard to endorsements,
      disqualifications etc.

4.1.3 When you have completed the Application Form and the Mandate, these
      should be returned to Auto Intelligence Limited. Auto Intelligence will send
      the details of your application to your director. Your director will need to
      be satisfied that you meet the eligibility requirement for the Lease Vehicle
      Scheme before approving your application. Once your application has
      been approved by your director, and their line manager if the director’s
      delegated authority is not sufficient, Auto Intelligence Limited will place
      your order with the appropriate Contract Leasing Company. You will be
      contacted by the supplying dealer prior to delivery. At this time you should
      confirm the delivery address.

4.1.4 If you already have a Lease Vehicle Scheme car you will need to contact
      Auto Intelligence Limited to make the collection arrangements for your car.
      If there is going to be a major delay in delivering your new car the leasing
      company dealing with your new car order should inform Auto Intelligence
      Limited and they will, in turn, advise you. A delay in the delivery of your
      new MHS Lease Vehicle Scheme car may result in your current vehicle
      arrangements being extended. Auto Intelligence Limited will let you know
      which leasing company your current vehicle was obtained from. Please
      ensure that you arrange delivery of your new car on the same day as you
      arrange collection of your current car to prevent the department paying for
      two leasing costs, otherwise you may incur an additional charge. We
      would recommend that you arrange the new vehicle delivery for the
      morning of the day that is convenient to you, and make the collection
      arrangements for your current car later in the same day. You will then be
      able to ensure that the new MHS Lease Vehicle Scheme car is acceptable
      in terms of specification and condition before disposal of your current

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4.2   Confirmation Signature

4.2.1 Your signature on the Application Form is important for the following

      •   it is your authority to allow the MHS to make deductions from your
          salary for private use,
      •   your choice is final - assuming there are no problems with sourcing
          the car the order will be placed on the strength of your signature,
          (subject to authorisation),
      •   it represents your acceptance of the MHS Lease Vehicle Scheme
          terms and conditions. Please read the MHS Lease Vehicle Scheme
          documents and instructions thoroughly before returning your
          Application Form,
      •   Auto Intelligence Limited cannot proceed with your order until they
          have the correct, original forms.

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Part 5 - Taking Delivery of your New Car

5.1 General

5.1.1 On delivery of your car it is very important that you are wholly satisfied
      with its condition, the following checks should be carried out before signing
      for it:-

•     Exterior - Inspect the car for defective paintwork and for damage to the
      body and external fittings.
•     Interior - Inspect for damage / stains to the seats, carpets and head lining.
•     Ensure that a spare wheel, tools, locking wheel nuts (if included), jack and
      front and rear mats are supplied.
•     Mechanical - Start the engine to see if any defects are apparent and check
      oil, water and brake fluid levels.
•     Electrical - Check the operation of lights, wipers, indicators, horn, etc.
•     Documentation - Ensure that a service record book, a free first service
      voucher (where appropriate), an owner's handbook and any other
      instruction books (e.g. for radio cassette, etc.) are supplied. Most
      manufacturers supply free membership to the AA, RAC or equivalent
      breakdown organisations for at least the first year of the car's life. In some
      instances they may require enrolment or registration and details of such
      procedures will be supplied with the car.

5.1.2 Should you have any complaints do not sign any acceptance note, but
      telephone Auto Intelligence Limited for assistance whilst the delivery driver
      is still with you.

5.1.3 If there are any defects that can be readily corrected at the first service,
      please endorse the delivery note.

5.1.4 You should sign the Drivers Delivery Condition Report form each time you
      take delivery of a new MHS Lease Vehicle Scheme vehicle. In summary,
      each time you take delivery or dispose of an MHS Lease Vehicle Scheme
      vehicle you should follow the steps below:-

1.    Check and note the name of Delivery Company.
2.    Keep a record of Delivery Companies contact details.
3.    On the same or the next working day that delivery or disposal
      arrangements take place open, forward to Auto Intelligence Limited a copy
      of the delivery/disposal note.
4.    Send a copy of the forms to your director confirming delivery.

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5.1.5 Particular attention should be paid when completing the delivery mileage
      and the radio code / key number sections.

5.1.6 Please remember that a few minutes spent on diligent inspection of the
      car will not only ensure your satisfaction but also protect the MHS from
      any subsequent disputed repair costs.

5.2 Handing over your old Lease Vehicle Scheme Car

5.2.1 The driver will ask you to sign an appraisal form confirming the condition
      of the car. The car must be handed over in a clean (inside and out) and
      damage free condition. This includes making good any damage caused by
      the removal of extras fitted by you after delivery.

5.2.2 You should forward a copy of the Collection Condition Report that includes
      Disposal or Final Mileage to Auto Intelligence Limited without delay. If the
      MHS has to pay for the cleaning of the car when the vehicle is transferred
      to a new driver or on disposal, you may be liable for this cost.

5.2.3 For Lease Vehicle Scheme cars the condition of the return vehicle is
      especially important. If any damage is not rectified before the car is
      returned to the leasing company, we will be charged for the cost of the
      repairs. This charge will then be passed on to you. See also the Fair Wear
      and Tear Guide.

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Part 6 - A Guide to Leasing Arrangements
6.1 Choice of Vehicle

6.1.1 Vehicles are usually factory ordered. The leasing contract signed by MHS
      covers all vehicles leased on behalf of the MHS and certain conditions
      under the terms of the Lease Agreement have a direct impact on your
      responsibility for the day-to-day wellbeing of the vehicle. You will not be
      able to alter your order once it has been submitted to Auto Intelligence
      Limited. Auto Intelligence will maintain a list of vehicles available to the
      scheme after applying the selection criteria as ruled for the scheme. The
      vehicle choice list is constantly changing and forms an indication of
      available vehicles. As wide a choice as possible is catered for and
      consideration of NCAP safety ratings are used as one of the selection
      criteria, the others being cost and CO2 emissions. Auto Intelligence
      Limited will assist you in all aspects of vehicle choice and availability.

6.2 Lease Period

6.2.1 All leases will be for a period of 3 years.

6.3 Servicing / Maintenance

6.3.1 All vehicles supplied under the Scheme are provided with a full service
      and maintenance package administered by the leasing company, full
      details of which will be provided in the leasing company’s driver handbook.
      Drivers will not normally be required to pay for service and maintenance
      items including tyres unless the reason for service exchange is as a result
      of damage. However, please note that drivers will be responsible for
      checking oil and coolant levels on a regular basis and ensuring these are
      maintained at the correct levels between services. Please note that the
      purchase of top-up packs are not reclaimable as expenses.

6.3.2 All vehicles are supplied with a full roadside assistance package, details of
      which will again be included in the leasing company’s driver handbook
      accompanying the vehicle.

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6.4 Accident Management

6.4.1 In addition Accident Management will be handled by Arista Insurance.
      Arista can be contacted on 0844 800 9906. They will handle all details
      relating to the accident report, vehicle repairs, alternative transport and
      vehicle recovery.

6.5 Insurance Cover

6.5.1 Fully Comprehensive motor insurance covering the employee and other
      authorised users of the Lease Vehicle Scheme for both business use and
      social, domestic and pleasure purposes will be provided by Arista

6.5.2 The cost of providing such insurance will be reflected in the driver’s
      contribution and additional costs will apply in respect of certain categories
      of drivers. The insurance policy will cover the user and named members
      of his/her household who are living with the user at the same address,
      hold a full driving licence and are listed on the Lease Vehicle Scheme
      application form. The insurance policy will provide cover for loss or
      damage to personal effects and audio and telephone equipment fitted to
      the vehicle (details available on request from Auto Intelligence).

6.5.3 The employee must notify Auto Intelligence Limited if he or she wishes to
      add any other persons within the household as named drivers of the
      Lease Vehicle Scheme vehicle, or of any changes in the details already
      provided on the application form. This information is required for the
      submission to the Motor Insurance Database under the EU 4th Directive on
      Motor Insurance, which is currently maintained by Arista Insurance.

6.5.4 The cost of arranging fully comprehensive motor insurance for the use of
      the Lease Vehicle Scheme vehicle will be charged to local cost centres.

6.5.5 The insurance cover provided for the Lease Vehicle Scheme vehicle will
      be invalidated if any of the terms and conditions of the Lease Vehicle
      Scheme are not met by the employee. In these circumstances the
      employee may become liable for any fines, other costs or losses to the
      MHS arising out of their negligence.

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6.5.6 The insurance provisions do not cover

      •      learner drivers
      •      drivers who are disqualified from driving
      •      drivers under the age of 21
      •      drivers over the age of 65

6.5.7 The insurance provisions include a compulsory excess charge of £250
      payable by the employee/driver whilst on private usage, which is subject to
      annual review. The excess charge does not apply in respect of any claim
      for loss of personal effects and is only applicable for claims when the
      vehicle was being used for private use. Please note that the excess would
      be payable by the MHS should the employee be using the vehicle for
      business purposes at the time of an incident.

6.5.7 Insurance does not cover loss or damage to the vehicle or its contents by
      theft or attempted theft or unauthorised person taking and driving it if;

      •      it has been left unlocked
      •      it has been left with keys in it
      •      it has been left with windows open
      •      reasonable precautions to protect the vehicle have not been taken.

6.5.9 Should you decide to leave the employment of the MHS and you have
      made no insurance claims on your LVS vehicle, you may request a letter
      from the MHS confirming the period of insurance coverage without claim.
      This may enable you to include this period of ‘no claims’ in your risk profile
      when seeking future quotations with your own insurance provider. This is
      a widely accepted practice throughout the insurance industry; however,
      please note that not all insurance companies will accept this as proof of no
      claims bonus.

6.6 Breakdown Arrangements

6.6.1 All vehicles have FREE breakdown / recovery provided by the Leasing
      Company. Full details of these arrangements will be supplied with your
      delivery documentation.

6.7 Warranty

6.7.1 All vehicles are covered by the manufacturer for the replacement of
      defective parts and associated labour charges for at least the first year of
      the 3-year lease and in certain circumstances beyond that.

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6.8 Forms and Instructions

6.8.1 Our instructions are revised periodically to take into account any
      operational or other matters so you should check with Auto Intelligence

6.9 Windscreen Cover

6.9.1 All vehicles are covered by the insurance policy for windscreen damage,
      subject to a £50.00 excess.

6.10 Replacement Odometer / Maintenance Responsibilities / Excess Wear
and Tear Definitions

6.10.1 If the vehicle’s odometer fails to function at any time during the term of hire
       you must immediately inform Auto Intelligence Limited specifying the date
       of failure and the recorded mileage at that time and the date on which the
       repaired odometer is refitted to the vehicle. Please see more on this in the
       Fair Wear and Tear Guide available on application to Auto Intelligence

6.10.2 See also Fair Wear and Tear Guide for details about maintenance
       responsibilities / excess wear and tear definitions, etc. This guide is
       important for all drivers of our vehicles to note. It aims to provide you with
       a clearer picture of what is / is not acceptable to the Contract Leasing
       Companies in terms of fair wear and tear on your vehicle.

6.10.3 Please remember it is always the driver’s responsibility to deliver up the
       vehicle for planned and required maintenance in a timely fashion. Failure
       to do so may result in premature damage for which you may become liable
       for the cost of repair or replacement.

6.10.4 Please note that it is also the driver’s responsibility to purchase top-up
       packs of oil and coolant to maintain the correct levels in between services
       and to preserve the appearance of the vehicle by regular cleaning.

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Part 7 Running your Vehicle

7.1   Use of the Vehicle

7.1.1 The driver shall take all reasonably practical steps to ensure that the
      Vehicle is used in a careful and proper manner in accordance with the
      manufacturer’s recommendations, and comply with the guidance notes
      and instructions provided with the vehicle by the leasing company.

7.1.2 The driver shall ensure that authorised contractors have access to the
      vehicle at all reasonable times for inspection and removal upon being
      given reasonable notice of his intention to do so. The Vehicle shall be
      secured at all times and shall not be taken outside the United Kingdom
      without the prior written authorisation of the leasing company. This can be
      obtained by contacting Auto Intelligence Limited.

7.1.3 The driver shall ensure that the Vehicle is driven only by properly
      authorised and qualified persons. Only holders of driving licences for the
      appropriate class of vehicle may drive the Vehicle.

7.1.4 The driver shall ensure that the Vehicle is not used for racing,
      pacemaking, trials or competing in motor sport of any kind, neither shall it
      be used for any illegal or unlawful purposes.

7.1.5 The driver shall ensure that the Vehicle is not overloaded and is used only
      in a manner appropriate to its design and specification within the
      limitations and advice provided by the Vehicle’s manufacturers.

7.1.6 The driver, and any persons authorised by the MHS to use the Vehicle,
      shall not let anyone obtain any rights over the Vehicle nor let anyone take
      or threaten to take it to pay any of their debts, and shall keep the Vehicle
      in their possession and under their control and not let, sell, transfer,
      mortgage, or give the Vehicle to any other person.

7.1.7 The driver shall ensure that any fines or fixed penalties imposed as a
      result of the use of the Vehicle are paid promptly. Administration charges
      will apply if the fines are paid on your behalf or notified in your name.

7.2 Mobile Telephones

7.2.1 On 27th February 2007, tough new penalties were introduced for those
      caught breaking the law by using a hand-held mobile phone or similar
      device while driving. Section 26 of the Road Safety Act 2006 has

                                20 of 33                      21 November 2008
      increased the fixed penalty from £30 to £60 plus three penalty points. The
      same changes are being made to the penalties for not having proper
      control of a vehicle – a measure which can also be used where a driver
      has been distracted by using a hands-free mobile phone. If the police or
      the driver chooses to take a case to court rather than use a fixed penalty
      notice, the maximum fine is £1,000 (£2,500 for drivers of vans, lorries,
      buses and coaches).

7.2.2 The MHS expects its staff to follow the Highway Code, in particular
      Paragraph 127, which states: You MUST exercise proper control or your
      vehicle at all times. It is MHS policy that you must not use mobile phones
      while driving. Find a safe place to stop first before using any telephone in
      your car.

7.2.3 It is a misconception that mobile phones cannot ignite fuel/fuel flames.
      There have been three reported incidents recently where a phone ringing,
      or a phone answered in the vicinity of the petrol pumps, caused burns to
      individuals. Please remember that mobiles should be switched off when
      you are re-fuelling.

7.2.4 If you are convicted of any offence connected with a mobile phone whilst
      driving on business this may lead to disciplinary action.

7.3 Smoking in Lease Vehicles

7.3.1 In accordance with the recent legislation introduced throughout England,
       Scotland and Wales, smoking in MHS lease vehicles that are used by
       more than one person is now banned and this extends to both drivers and
       passengers. ‘Using’ a vehicle can be defined as driving the vehicle or
       being transported as a passenger.

7.3.2 Where a lease vehicle is used as a workplace by more than one person,
      regardless of whether they are in the vehicle at the same time, it will be
      required to be smoke-free at all times. Smoking will only be allowed in
      lease vehicles that are for the sole use of the driver and are not used by
      anyone else, either as a driver or passenger.

7.3.3 In order to comply with the legislation, LVS drivers must ensure that their
      vehicle displays a no-smoking sign in each compartment of the vehicle in
      which colleagues may be carried. Stickers will be supplied free of charge
      to all employees joining the LVS and these must be placed in a prominent
      position where they are clearly visible to anyone travelling in the vehicle
      (e.g. passenger window).

7.3.4 It should be noted that the penalties for failing to comply with the new
      legislation are severe, therefore the MHS has introduced a new MHS

                                21 of 33                      21 November 2008
      Smoking at Work Policy (HRP21) which provides further detailed guidance
      on the subject. LVS drivers should familiarise themselves fully with this

Part 8 - Accident Procedure
8.1 What to do if you are Involved in an Accident

8.1.1 If you are involved in a road accident:-

      •   Remain calm.
      •   You must stop if you are involved in an accident which causes
          damage or injury to any other person, vehicle, animal or property.
      •   Give yourself time to think, do not admit liability by word or deed, do
          not apologise, do not discuss who is to blame, and do not offer to
          pay. By admitting blame you might invalidate the insurance.
      •   Obtain the names and addresses of any witnesses.
      •   Exchange insurance details with third parties including; name,
          address, telephone number, registration number, make and model,
          insurance company's name, policy/certificate number and the
          Vehicle owner’s name.
      •   Make notes of what happened and draw an accident plan.
      •   Telephone your office / line manager to advise them of the
      •   The police may ask you for a statement, you do not have to do it
          immediately, it is better to write it out later taking care with the
          wording. Do not forget to make a copy for yourself. If the police ask
          to see your insurance certificate please contact Auto Intelligence
      •   Contact the Accident Management helpline immediately. Accident
          report forms will be provided by the Accident Management
          Company and they will be able to advise you about how to proceed.
      •   Contact Auto Intelligence Limited if any accident occurs that
          involves a fatality.
      •   Any subsequent correspondence relating to the accident should be
          sent to the Accident Management Company without delay.

8.1.2 It is essential that you telephone Auto Intelligence Limited immediately
      with full details of any proposed inquest, or Police proceedings.

8.2 Legal Responsibilities Following an Accident

8.2.1 If an accident happens on a public road you must report it to the Police
immediately if:-

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        •   personal injury or death is caused,
        •   no injury is involved but the other driver refuses to supply name,
            address, registration number etc. or in circumstances where there
            are heated exchanges,
        •   it is suspected that the other driver is under the influence of drink /

within 24 hours if:-
       • a domestic / farm animal (but not a cat) is injured,
       • the accident damages any part of the roadway or any adjacent
          property (e.g. bollards, traffic lights, road signs etc.),
       • the accident damages another vehicle without a driver (e.g. a
          parked vehicle),
       • there is a criminal offence, (e.g. theft of vehicle, acts of vandalism
          or hit and run).

Any driver who fails to comply with the above requirements of the Road Traffic
Acts may be liable to Police prosecution.

In addition it may be advisable to summon the assistance of the Police, if you
have difficulty understanding the other driver or where the roadway has been
partially or totally obstructed.

8.3 MHS Accident Book

8.3.1   Accidents occurring on business use must be reported as per the MHS
        Accident Reporting Procedure (HSM 2.0). Please notify your line manager
        of the accident within 24 hours. The accident report form (IR1) needs to
        be completed either on your return to the office (e.g. where there is minor
        or no injury) or by your line manager (e.g. where serious injury has

8.4 Car Repair Procedure

8.4.1 After you have reported the accident arrangements will be made by the
      Accident Management company for the car to be collected and repaired.
      See Part 10 concerning short-term car hire. If an insurance excess
      applies, you will be required to pay this amount direct to the repairing
      garage after the repair is complete.

8.4.2 The Accident Management company will invoice the MHS or its insurance
      company for the cost of the repairs to your car. In most cases you will be
      asked to sign a satisfaction note when your car is returned to you after

                                    23 of 33                        21 November 2008
      repair. If you are not satisfied with the standard of workmanship or repair
      please contact the Accident Management company immediately and
      inform Auto Intelligence Limited.

8.5 Minor Replacement and Emergency Repairs

8.5.1 Accidental damage to vehicles must be repaired before the vehicle is
      collected for disposal. Please contact Auto Intelligence Limited. This
      applies even for minor damage such as scrapes in car parks.

8.5.2 They will determine whether the vehicle needs to be allocated to a
      bodyshop for repairs, or whether a mobile 'smart' repairer can be called
      out to you to undertake the repairs and make the necessary arrangements
      with the Accident Management Company.

8.6 Emergency Hospital Treatment

8.6.1 Where you or any passengers receive emergency hospital treatment the
      bill should be forwarded to the Accident Management Company

                                24 of 33                     21 November 2008
Part 9 - Theft, Attempted Theft and Vandalism
9.1 Theft of your Car
      • You should notify the Police, obtain a Crime Reference Number
          (CRN), and notify the Accident Management Company and Auto
          Intelligence Limited immediately.
      • The Accident Management company will send you an incident
          report form for completion.
      • If the Police fail to locate your car after 21 days, your current
          Agreement will be terminated. Arrangements will then be made
          (assuming you are still eligible and wish to continue on the scheme)
          to lease a new car.
      • If your car is found by the Police you should contact the Accident
          Management         Company       and     Auto  Intelligence   Limited.
          Arrangements will be made for you to collect the car.
      • If the car has been damaged, the Accident Management Company
          will arrange for its repair and return to you.

9.2 Theft / Attempted Theft from your Car
      • You should notify the Police (obtain a CRN) and the Accident
          Management Company and Auto Intelligence Limited.
      • The Accident Management Company will send you an incident
          report form for completion.
      • The Accident Management Company will arrange for any repairs.

9.3 Theft of Mobile Phone
      • In addition you should contact your airtime supplier immediately to
          stop your phone number being used.

9.4 Car Security Advice
      • Whilst the car is unattended, always ensure it is locked and that the
         keys have been removed.
      • If you have an alarm / immobiliser, ensure it is set.
      • Store personal / MHS property out of view or remove it altogether.
      • If possible, garage your car at night. If this is not possible, park it in
         a well lit area.
      • Where applicable remove car radios or radio front panels.
      • Retract / remove aerial if possible.
      • Secure hubcaps using plastic ties where possible.

                                  25 of 33                       21 November 2008
Part 10 - Replacement Car Arrangements

10.1   Short-term Car Hire

10.1.1 You must always endeavour to book your MHS Lease Vehicle Scheme car
       into a serving outlet that offers a courtesy car. Alternatively you should
       plan maintenance for days when you do not require your vehicle. If you
       are unable to get a courtesy car, via the servicing outlet, and your car is
       likely to be ‘off the road’ for more than 48 hours, you may arrange short-
       term car hire. If your Lease Vehicle Scheme car is unavailable or
       unroadworthy as a result of an accident, theft or serious vandalism you
       may also arrange short-term car hire. This arrangement can continue until
       you have arranged for your Lease Vehicle Scheme car to be repaired and
       it has been returned to you, or a replacement supplied. In the event of you
       requiring short-term car hire you must use the MHS car hire contract. You
       must abide by the requirements placed on drivers under the car hire

                                26 of 33                      21 November 2008
Part 11 - Changes to Personal Circumstances

11.1 Leaving the Scheme

11.1.1 If you wish to leave the scheme early, you should put your reasons in
       writing to your director, and send a copy to Auto Intelligence Limited, for
       their consideration.

11.2 Maternity Leave / Long Term Sick Leave

11.2.1 You will be able to keep your car during any period of Ordinary Maternity /
       Adoption Leave. You will be able to keep your car during any periods of
       Additional Maternity / Adoption Leave (subject to the currency of the lease
       of the vehicle and subject to the continued payment of contributions for
       private use).

11.2.2 You will also be able to keep your car during any periods of long term sick
       leave (subject to the currency of the lease of the vehicle and subject to the
       continued payment of contributions for private use).

11.2.3 You must advise your line manager / director of matters affecting your
       participation on the scheme. You must copy any such notification to Auto
       Intelligence Limited.

11.3 Change of Duties

11.3.1 You are obliged to inform your line manager / director in writing of any
       change of duties which may affect your ability to meet the minimum
       mileage criteria. You must copy any such notification to Auto Intelligence

11.3.2 Should you leave the employment of the MHS, either permanently or, for
       example, on a career break or external secondment, you will be required
       to surrender the lease vehicle on or before your last day of employment.

11.3.3 If you permanently change jobs within the MHS, or the nature of your job
       changes on a permanent basis during the period of the lease contract,
       your eligibility to remain in the Lease Vehicle Scheme will be reviewed
       based on the estimated business mileage of the new / revised position. If
       you are no longer eligible to participate in the Lease Vehicle Scheme a
       three month notice of withdrawal will be given by your line manager. The

                                 27 of 33                       21 November 2008
      vehicle would then be reallocated to a member of staff who is waiting to
      join the MHS Lease Vehicle Scheme until the end of the lease. If it is not
      possible to reallocate the vehicle the lease would be terminated and the
      Region or Department for which the driver worked would pay any
      termination costs.

11.3.4 If you have a temporary change of job within the MHS for a period not
       exceeding 12 months, for example, due to an internal secondment, and
       you are no longer eligible for the Lease Vehicle Scheme due to the nature
       of your temporary post, you will be able to retain your current lease car for
       the period of the secondment or until the current lease expires (whichever
       is sooner). Cases where the temporary change, for example, period of
       internal secondment, is likely to exceed 12 months, will be considered on
       their own merits.

11.4 Change of Name / Address Details / Telephone number / Transfer

11.4.1 If you change your name, address or telephone number please advise
       your Human Resources Adviser in writing and copy this notification to Auto
       Intelligence Limited.

11.4.2 Please remember to notify Auto Intelligence Limited if you change your
       cost centre.

                                 28 of 33                       21 November 2008
Part 12 - Responsibilities and the Law
12.1   Legal Assistance

12.1.1 The Crown reserves the right to determine when, and to what extent, legal
       assistance will be given in cases arising out of accidents involving official
       cars. Assistance at public expense (including legal representation) may
       be given if criminal proceedings arise out of fault in the maintenance or
       equipment of an official car.

12.1.2 The Agency will not normally give legal assistance beyond what is
       available under a normal comprehensive policy where the user of an
       official car is charged with a road traffic offence and there is no potential
       third party claim. But, exceptionally, if the alleged offence has been
       committed on duty and the Agency is satisfied that the circumstances are
       such that it ought to accept responsibility for providing representation, we
       may provide assistance whether the user has a good defence or not.

12.1.3 The Agency retains the right to take disciplinary action against any driver
       who, wilfully or through their culpable negligence, damages an official car.
       In the case of culpable negligence the Agency will consider each incident
       on its merits, once all of the relevant details are known.

12.1.4 Further to the above clauses, please note that legal expenses cover may
       be available via the insurance policy in force at the time of the accident.
       This may be ascertained if required by contacting Auto Intelligence

12.2   Licensing Requirements

12.2.1 You must:-

       •   have a full, valid driving licence and complete the relevant
           application form(s) at the appropriate times.
       •   be conversant with the provisions of the Highway Code, a
           complimentary copy of which will be sent to all drivers joining the
       •   report any endorsements or disqualification immediately to us.

12.2.2 Should your ability to drive be impaired by ill health or injury, you must
       inform us and seek advice.

12.2.3 Failure to comply with the above could render you and the MHS liable to
       penalties in respect of accident damage claims.

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12.3   Seat belts

12.3.1 All drivers and their passengers must ensure that they use the seat belts
       in the car. Responsibility for the wearing of seat belts rests with the
       individual(s) (except in the case of children, where it is the driver's
       responsibility). Failure to comply with the law could lead to prosecution
       and a fine.

12.3.2 A seat belt need not be worn in the following circumstances:-

       •   the driver is carrying out a manoeuvre which includes reversing,
       •   a valid exemption certificate from a doctor is held. There is no list of
           health reasons that will give automatic exemption from the wearing
           of a seat belt,
       •   the seat belt has become defective during or before a journey and
           you have arranged to have it repaired.

12.3.3 There are some other exceptions but these are unlikely to apply.

12.4   Prohibition Notices Issued Under the Road Traffic Acts

12.4.1 All cars including new ones can now be banned from the road instantly if
       the Police see they have a serious or dangerous fault. This could be
       something as small as a blown light bulb. This part of the Road Traffic Acts
       is for the first time subjecting cars, irrespective of their age, to the DfT

12.4.2 With a prohibition notice imposed the car cannot be driven until the fault
       has been corrected, has passed a full MoT test, and has been inspected
       and signed off by the Police. The whole procedure can take several days
       to settle and involve many costs (e.g. towing fees, repairs, MoT charge,
       alternative transport (car hire), etc.).

12.4.3 This law is in addition to the existing Car Rectification Order which
       currently gives a motorist 5 days in which to get a fault rectified before
       presenting the car to the Police for inspection.

12.4.4 Should the above happen contact Auto Intelligence Limited for help and
       advice immediately.

                                  30 of 33                        21 November 2008
12.5 Penalties and Fines

12.5.1 You are personally responsible for any fines incurred whilst the car is
       allocated to you. This also includes fines incurred by other drivers to whom
       you have authorised use of the car.

12.5.2 You are required to pay such fines within 7 days and you must obtain a
       receipt. Failure to pay the fine will result in the issuing authority referring
       the fine to the Leasing Company as the registered keeper for payment.
       The Leasing Company will pay the fine and add an administration fee. If
       this happens you will be required by the MHS to pay the fine and the
       Leasing Company’s administration fee. If you fail to pay the fine and the
       administration fee within the time requested by the MHS the MHS reserves
       the right to deduct the fine and administration fee from your next salary

12.6 Production of Driving Documents

12.6.1 A police officer may stop the driver of a motor vehicle and ask them to
      produce their documents when:

•      a motor vehicle is being driven on the road, or
•      the officer reasonably believes that the person was the driver of a motor
       vehicle involved in a road traffic collision, or
•      the officer reasonably believes that the person was the driver of a motor
       vehicle at the time of a moving traffic offence.

If this happens and you are unable to produce the relevant documents
       immediately, you will be issued with an HO/RT/1 form. You must take this
       form and all the documents you have been asked to produce (which may
       include driving licence, insurance certificate and MOT certificate), to the
       police station that you have nominated within seven days.

12.6.2 If you lose the HO/RT1 form you are still legally obliged to produce your
      documents within 7 days of being asked to do so by the officer who
      stopped you. You should take all your documents (driving licence,
      insurance certificate, and MOT certificate) into the police station you
      nominated at the time. If you cannot remember which station you
      nominated, you may take them to any police station in England or Wales.
      When attending the police station you should try and recall the time, date
      and location you were stopped.

                                  31 of 33                       21 November 2008
12.6.3 If you have been asked to produce your insurance document, please
      contact David Tomes at Auto Intelligence immediately, who will be able to
      send you a copy.

                               32 of 33                     21 November 2008
Part 13 - Claiming and Accounting for Mileage
13.1     Motor Mileage Allowance for Business Travel

13.1.1 A motor mileage allowance, per mile, may be claimed for authorised
       business journeys undertaken in a Lease Vehicle Scheme vehicle, on the
       basis of the employee purchasing fuel of the appropriate type for the
       vehicle and claiming the allowance according to business mileage

13.1.2 The motor mileage allowance will be reviewed from time to time.

13.1.3 Business travel claims should be made monthly on form TASC 3 in
       accordance with the rules set out in Finance Procedure FAP5. TASC 3
       forms are available from Regional Offices and HQ Departments.

13.1.4 Travel between the employee's home and employment base will not be
       treated as an official business journey and will therefore be classified as
       private mileage under the Scheme. Inland Revenue approved home-
       based employees will be eligible to claim business mileage from home.
       Claims for taxable mileage must be made on form MHS430, obtainable
       from Regional Offices and HQ Departments.


                                             33 of 33         21 November 2008

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