">http://Trafficmaster PLC
05 October 2005

5 October 2005



Trafficmaster signs 5 year contract to work with Norwich Union on "Pay As You
Drive"TM Insurance



Trafficmaster, the leading supplier of digital traffic information and
intelligent in-vehicle services, has signed a five year contract with Norwich
Union (NU) to deliver "Pay As You Drive"TM (PAYD) insurance services to the
motorist.



Trafficmaster will supply NU with an initial quantity of 10,000 advanced "
black-box" in-car units in the first half of 2006. The black box, which is
already being used for both Trafficmaster's navigation unit Smartnav and
tracking device RAC Trackstar, identifies the location of the vehicle to allow
the delivery of PAYD insurance.



NU customers will be offered comprehensive products that provide cost effective
insurance together with a raft of optional in-vehicle services. These will
include safety camera warnings, Smartnav navigation, emergency and breakdown
calls and stolen vehicle tracking from RAC Trackstar.



Tony Eales, Chief Executive of Trafficmaster, said "This is a major new market
for Trafficmaster as it not only provides large scale deployment of our
in-vehicle units but also provides an opportunity to sell our other compelling
services. The deal provides a new way to deliver Smartnav and it will allow us
to offer insurance products to many of our own subscribers."



Stephen Doran, Director of Business Development at Norwich Union said "Our
partnership with Trafficmaster will allow us to deliver some very compelling new
customer propositions combining "Pay As You Drive" TM Insurance from Norwich
Union with a range of added value in-vehicle services that Trafficmaster will
deliver. Norwich Union have been the pioneers of PAYD insurance in the UK, and
this partnership will allow us to take the programme to the next level."



-ends-


Trafficmaster Tel: 01234 759 300
Tony Eales, Chief Executive
Stuart Berman, Executive Director

Financial Dynamics Tel: 020 7831 3113
Ben Atwell / John Gilbert



Trafficmaster

Founded in 1988, Trafficmaster Plc is the UK's leading journey management
company providing high quality satellite navigation, traffic data and vehicle
tracking systems.



Trafficmaster's traffic information is derived from its unique state-of-the-art
network of nationwide static roadside sensors and transmitters that gather and
distribute traffic data from over 8,000 miles of motorway and trunk routes.
Traffic data is then delivered to the customer through a number of screen or
speech-based receivers. These include a variety of in-car products and services
that include its satellite navigation - Smartnav, Trafficmaster Monitor, YQ(2),
Oracle and Freeway units. Traffic information can also be obtained by phoning
the 1740 service, which is run in partnership with the RAC and the UK's main
mobile phone operators.



The traffic data provided through Trafficmaster RDS TMC is used, in conjunction
with third party satellite navigation systems, to route drivers around
congestion. The data is broadcast on licensed radio networks owned by GCap Media
Plc and Chrysalis Radio and is provided to original equipment manufacturers
(OEMs) or direct to automotive manufacturers.



For more information please visit www.tmc.co.uk or www.trafficmaster.co.uk or
contact:



Pay As You Drive (PAYD)



Pay As You Drive is the concept of insurance charging based upon usage.



About Norwich Union Insurance

Norwich Union is the UK's largest insurer with a market share of around 14 per
cent.

With a focus on insurance for individuals and small businesses, Norwich Union
insures:

- One in five households

- One in seven motor vehicles

- Around 800,000 businesses



Norwich Union products are available through a variety of distribution channels
including brokers, corporate partners such as banks and building societies and
Norwich Union Direct.



Aviva, Norwich Union's parent company, recently announced its acquisition of the
RAC. The acquisition brings together the RAC's powerful brand and customer base
with the expertise and leading position in motor insurance of Norwich Union
Insurance.




This information is provided by RNS
The company news service from the London Stock Exchange
END

CNTUUGQAUUPAGMC

read the front page of the daily mail

Black box spy in the car boot
http://www.thisismoney.co.uk/insurance/car-insurance/article.html?in_article_id=404509&in_page_id=35
CAR insurance is set for a major shake-up, with pay-as-you-drive policies based on a hi-tech 'spy' in the boot.



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The black box devices will log details of all journeys, meaning lower bills for those who drive less often or in daylight. But civil liberties groups will be concerned about the Big Brother aspects of the system, being launched by Norwich Union.


Insurers will know exactly where a client has been and there will be fears that the information could be sold on to other companies. The information in the black boxes will also make it possible to calculate a driver's speed.

The firm says this will not be done unless a driver asks for it - after an accident, for example - but it admits that police could also request details. Pay-as-you-drive policies, in which drivers are asked to pay itemised monthly bills instead of an annual premium, are already popular in the US.

Norwich Union has been offering them to young drivers since earlier this year, as well as running a trial with another 5,000 motorists.


Now the company, which insures one in seven of Britain's 24m drivers, is opening the scheme up to all groups. The black boxes are in constant contact with global positioning satellites to log every detail of a journey - its time, place and length.

The details are transmitted to the insurance company using mobile phone technology. Drivers are sent an itemised monthly statement, similar to a phone bill.


Those who use their cars less often could end up paying considerably less than with their existing premiums. This would be good news for mothers who limit their motoring to the school run or a weekly trip to the supermarket.


Drivers can be charged as little as 6p a mile between 6am and 11pm, because accidents are less likely during the day. At night, however, the charge rockets to 1 a mile. There is also a fixed monthly charge to cover theft and damage while the car is stationary.


A Norwich Union spokesman said: 'It means we can personalise insurance policies. It is a much fairer product.'


Critics warn that many drivers, especially the young and the elderly, will be put off by the likely 200 initial cost of the equipment, which can also be dashboard-mounted.


An AA spokesman said last night: 'Some people will be concerned about having technology which tracks where they are and where they are going'.


The civil rights group Liberty said there would be 'concerns' if information was handed out to third parties. A spokesman added: 'Everything has to be done under the Data Protection Act and used only for the matter specified.'


Paul Smith, of the road safety lobby group M4 Protest said: 'I am certainly worried about the civil liberties aspects. We don't want the police being able to take these boxes and use the data for other purposes.'


Despite the doubts, the initiative by Norwich Union, Britain's biggest car insurer, is likely to force its rivals to follow suit. It will be the most dramatic change in the industry since the launch of Direct Line in 1985, which cut out the middleman and forced down premiums.

Insurance companies have already started to launch more personal products, which can be cheaper than standard deals.


A spokesman for Sheilas' Wheels, which sells women-only insurance, said: 'For too long, motor insurers have paid too little attention to exactly who is behind the wheel, the cars they drive or the journeys they make. With tailored policies, consumers really are in the driving seat.'

But pay-as-you-drive will not suit everyone. High-mileage motorists will still get a better deal from an annual policy.


Switching to pay-as-you-drive has already saved Matthew Smith around 1,000. The 18-year-old passed his test in February, but found a fully comprehensive policy cost 2,000.


Matthew, a health care assistant at Stoke Mandeville hospital in Buckinghamshire, switched to pay-as-you-drive and now pays only some 20 mileage a month, plus a 60 fixed charge. It is less than half his old bill.


He said last night: 'Having my journeys logged doesn't bother me. What matters is the extra financial freedom.'

This 'pay-as-you-go' insurance is such a good idea, that I have contacted Norwich Union, you pay set fee for the black box and then per daily use of the car 0.30. This is so wonderful if you hardly use your car, like me as a commute to London by train and only use the car at weekends, so good in fact that I am to switch to the system when my motor renewal is due in January 2006. When poeple realise the benifits and forget the big brother issues, as they have in america, this stock will rise sharply.

yes but you may as well dump at the moment, its dropping to 19p

still at it kat.they will it 15p.

Trafficmaster to fit Smartnav system in new Peugeot 407 models

http://www.moneyam.com/action/news/showArticle?id=1030832

Seems like a useful move :-)

Fly by Night

Red

What with the insurance market and good motor sale targets, moving up to 50p by the end of the year.

its only a winter promotion though, go on to peugeot.. its not perm..

BUGGER!!!!

Well thats a bind aint it Kat when fusy told you so earlier!!!

did you watch the new peugeot advert... it was more like a SMARTNAV advert...

Nice one TFC... now buy some bloody shares mr Director

Hello investers this is my first post on this matter,the market makers on this particular stock are taking the p--s they are like pixeys hideing away until everyone forgets about it.This stock will rise very quickly when the pixies wake up.Buy this stock soon,I am not ramping this stock up,do your own research.This is word from the ROCKET MAN.

A regular dose on TV at prime time will make for some interest in TFC. Anyone know how long the campaign will be running?

yes I do, the campaign is running till march 2006 ;-) lovely jubbly

Nice indeed. That will do TFC no harm at all.

the word is Norwich Union is going to launch pay as you drive not just for 18-23 years old but for everyone as from january 2006... apparently alot of people old and young have applied for it, its going to be a very very big success, the goverment wants to piggy back TFC's black box for the road charge...

this company will become a billion company with in a year, easy!!! QXL will look like a spec in comparison

Also note, all the other manufacturers will follow peugeot like they did in 2003, so expect to see at least one or two announcements a month from the company re standard fits, next one is citroen

Director today buys 15,000 shares in TFC

WOW

I read in the weekend press that the system is not working at the proper rate iehigh mileage motorist are

not being charge the right amounts etc etc /

starting to move back up... trading statement due any day now

15,000 cor, wow weeeeeeeeeeeeee, FANTASTIC, amazing, whoooooooooooo whhhhhhoooooooooooooooooooooooooooooo. This should flyyyyyyyyyyyyyyyy now!