Steve Cornelius - Head of Automotive and Transportation at Indwe Risk Services.
Transporting goods throughout Africa is a massive industry – an industry that has very specific insurance requirements. All too often transporters are unaware of the pitfalls that could lead to their claims being repudiated.
A recent study showed that in excess of 60% of trucks are not roadworthy – that translates into over 60% of claims relating to these trucks being repudiated or partial settlements being made. For any transporter that figure should be a massive wake-up call.
While South Africa has yet to implement the sophisticated systems that the UK has adopted, new laws are being promulgated with a view to keeping trucks on the straight and narrow by holding the consignor, the consignee and the transporter liable for accidents. Get a head start by ensuring that you have the following in place:
• Check the validity of every driver’s licence – it can have catastrophic consequences if documents are found to be lacking or fraudulent.
• Pay attention to the physical wellbeing of drivers –regular eye tests, blood sugar and blood pressure tests as well as TB tests are advisable.
• Obtain RTMS accreditation and renew the COF (Certificate of Fitness) and PDP (Professional Driver’s Permit) annually.
Road transporters and those who utilise their services must take responsibility for the issues that plague the industry – issues such as late loading and overloading. Late loading puts the drivers under pressure, forcing them to travel during unsafe hours (11:00 pm – 4:00 am) while overloading causes huge delays at the weighbridge as goods are unpacked and repacked.
Incentivising drivers to arrive at destinations earlier than scheduled encourage them to skip the necessary rest breaks and drive faster to make up time. It is not uncommon for drivers to work a straight 24-hour shift and one doesn’t have to be a rocket scientist to work out the consequences.
Although the initial outlay may be a little pricey, transporters should seriously consider investing in cabin cameras. The benefits are significant and include reducing potential liability claims and insurance premiums, saving fuel, and ensuring better safety and performance standards.
No transporter can afford to be complacent when it comes to insurance. Buying insurance based purely on lower premiums or lower excess structures is the equivalent of tunnel vision. Don’t take chances when it comes to having the right insurance – there is simply too much riding on it.
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