To identify the territory of regulation and tax of a motor risk consider:
1. the nature of the cover provided;
2. The jurisdiction in which the vehicle is registered;
3. The physical location of the insured vehicle; and
4. The location of the insured’s residence or business establishment.  

Individual vehicles
Motor Trade

Individual vehicles

Vehicle insurance covers losses arising from physical damage to a motor vehicle and the legal liability of the vehicle owner or driver.

The risk location may be determined by one or more of the following factors:

• Physical location of the vehicle
• Jurisdiction in which the vehicle is registered
• Location of the insured’s residence or business establishment

Please see the territory specific guidance on Crystal for specific risk location rules.


Fleet insurance covers losses arising from physical damage to a registered motor vehicle and the legal liability of the vehicle owner or driver. The insured is usually a corporate entity.

The risk location is determined in the same manner as for individual vehicles. If the contract covers vehicles registered in more than one jurisdiction, or at business establishments in more than one territory, the contract may have more than one risk location.   

Motor Trade

Motor trade insurance covers losses arising from physical damage to motor vehicles held in stock and customers’ vehicles worked upon, legal liabilities arising from the use of such vehicles and damage to premises and contents.

Motor trade cover is a package policy. The risk location is normally determined by the location of the insured’s business establishment.

If the contract covers more than one business establishment, situated in different territories, each business establishment will create a separate risk location.

Definition of 'business establishment'

European Union (EU) legislation defines the term ‘establishment’. Outside the EU the term is not so well defined, so in the absence of any contradictory guidance, it is appropriate to follow the EU approach.

Examples of business establishments:

  • subsidiary companies 
  • branches of companies 
  • representative offices 
  • offices managed by businesses’ own staff 
  • tied selling agents 
  • factories and workshops 
  • mines and quarries 
  • oil and gas wells 
  • drilling platforms fixed to sea bed














Risk locator tool

Risk Locator | Establish the location of your risk

Frequently asked questions 

Introduction to Risk Location

What is risk location and why is it important ?

Introduction to risk location

Establishing the risk location

To help establish risk location please consider the questions provided via the link below

How to establish the risk location

Class of business guidance

To help you establish the risk location please consider the class of business

Class of business guidance 

Risk Location Examples

The interaction of different territorial rules can make a given scenario complex. Applying the principles set out will assist market participants in establishing the risk location.

Risk location examples

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