South African roads: highway to hell

The use of telematics by truck and fleet owners has definite advantages in regard to risk management. Initially, tracking devices were primarily an anti-theft and recovery device without offering much in the line of fleet management.

One only has to consider the ever rising fatalities caused by road accidents to realise that sending out an expensive truck with cargo on a long haul trip on South African roads is a risk filled enterprise.

Beefing up intelligence

A recent development has been the linking of real time footage from on board cameras with telematic devices.

Some of the risks that can be managed effectively through the use of telematics include:

• Fuel usage data such as excessive idling, high revving and unauthorised deviation from route;
• Vehicle theft, early warning and tracking of truck, trailer and load and post theft events are essential elements;
• Fuel theft. Drivers are often involved and camera technology is now available to monitor front, side and rear of vehicle combinations on a 24/7 basis;
• Cell phone and tablet usage. This has become a major cause of accidents. Real time camera footage will highlight usage whilst driving for training and disciplinary purposes; and
• Incident management. Modern systems include reporting by SMS or other forms of communication for hash braking, impact alert, reckless driving monitored by increased g-forces and similar events. Provided there is an incident control centre to monitor and react to these alerts, response times are greatly reduced.

Helping hand to insurers

Telematics is also having a major impact on insurance underwriting and claims management; this is likely to grow exponentially. For insurance modelling in this sector of the business, namely motor insurance for heavy commercial vehicles, risk data is vital for selection of clients. On the face of it, all trucks face similar insurance risks. Traditionally, very little information has been available for driver profiling. The driver’s attitude and ability is the core of the risk for loss, damage and liability.

With the use of telematics, weekly or even daily reports can be provided for operations managers which profile drivers into good, indifferent and bad categories. This will highlight the need for corrective action such as additional driver training and punitive and disciplinary action.

Gathering vital data

Other features for insurance modelling via telematics include access to data regarding late night driving, frequency of driving within high risk areas, excessive driving hours without adequate rest stops and other similar data.

It is important for insurers to engage with truck owners who are clients as there is some concern that insurers will use the data to which they have access to reject claims. Truck owners must be assured that even when data provided indicates unlawful acts by the driver of the insured truck such as speeding violations, involvement in load theft or other such violations, such data will be used as a preventative measure to identify high risk activities and not to use against the truck owner to avoid claims for consequent loss or damage.

Many truck accidents involve collisions between two or more vehicles. Footage from telematics linked to on board cameras can be invaluable when insurers negotiate legal liability claims involving recovery from a negligent third party or when defending actions of recovery against their truck owner clients.

The claims management issue

Claims management is supported by the information provided by telematic devices.
Important factors for consideration during the claims process which can be provided by telematic devices include the following:

• Camera footage prior to, during and after the accident;
• Time and place of accident;
• Speed at time of accident;
• Impact warnings which shorten the claim reporting process; and
• Activity in the cab prior to an accident such as texting, signs of fatigue, carrying an unauthorised passenger, reckless driving.

At the end of the day, telematic devices have definite benefits for truck owners and their insurers.