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Opinion - Limiting Your Claims Costs Is Simple

Feb 23, 2016 HCV, Fleet, Trucking, RoadSafety, RoadAccidents, Truck, FleetManagement, Insurance


Chris Barry


Keeping a handle on the number of insurance claims made by an insurance party is not within the remit of insurance companies. Rather, it’s the insured parties that have all the power to keep their insurance premiums low and the opportunity costs of having a vehicle off the road to a minimum.

 

In our years of insuring South Africa’s heavy commercial vehicles we’ve noticed some common threads among our clients that enjoy sustained business continuity, low insurance premiums, uninterrupted service delivery to their customers and consequently sustained or even increased profitability.

 

  • Regular vehicle servicing and maintenance may look like a cost-line in your accounting package but it should be a non-negotiable in road transport, just like it is in aviation. In fact, it’s a saving: while the short term costs may pinch a little, they’re an investment against the massive costs of accidents caused by poorly maintained vehicles – and priceless when considering that they’re a protection against the loss of life. The best operators we’ve encountered make sure that their vehicles are serviced on schedule. 

 

  • Investing in driver training means that the drivers have the skills and savvy to manage your assets while they’re on the road. If you owned an aeroplane, you wouldn’t let an untrained, inexperienced pilot take to the skies with it – so why would you do the same with a truck? Implementing proper incentives for your drivers encourages them to adopt best practice driving behaviours, which in turn limits the risk of accidents and frequent maintenance requirements.  Telematics in commercial vehicles leading innovation in the sector, it’s easy to reward drivers for driving at the speed limit and taking frequent rest breaks – the simple steps required to keep them, your vehicles, and other drivers on the roads, out of accidents.

 

  • Remember that your drivers are really skilled – they are in control of very complex machinery that you own, that they operate in challenging conditions over long periods of time, far from their homes and families. Paying them in a way that respects their skills and their dignity will mean that they are more likely to take care of your equipment – and it means that they don’t have to work inhumane hours just to make ends meet. A tired driver is a dangerous driver… and a dangerous driver is one that causes accidents that lead to expensive insurance claims.

 

  • Keeping clear log books and records of maintenance will make any engagement with your insurer much simpler as they will be able to see at a glance that you as a fleet owner took every possible precaution to prevent an accident.

 

  • While bemoaning the prevalence of corruption in road policing is a national pastime, the issue is only going to be solved if commercial vehicle owners take a stand and refuse to give in to bribery opportunities. Furthermore, making sure that your vehicles are roadworthy means that there is no opportunity for corrupt officers to elicit bribes as they will have nothing with which to threaten drivers.

  

Taking steps to avoid insurance claims is not just about avoiding insurance claims – it’s about building a smart, sustainable business that respects the people it employs and the service providers it engages with.

 

Chris Barry is the MD of HCV Insurance.

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