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It’s time to take control of transport cowboys

24 March 2011 HCV Underwriting Managers
Chris Barry, MD of HCV Underwriting Managers

Chris Barry, MD of HCV Underwriting Managers

Poor freight management increases liabilities

A growing concern for all insurance underwriters (and South African road users) is the deteriorating commitment from some transport operators to manage their risks. The frequency and severity of commercial vehicle claim is on the rise, adding to the road safety plague in South Africa. Managing Director of Heavy Commercial Vehicle Underwriting Managers (Pty) Limited (HCV), Chris Barry, voices his concern of liabilities being under estimated and therefore under priced.

“Unfortunately, South Africa’s under performing rail system has resulted in too much sub- economical freight being transported on our road network. This means the trucks on the road often have to meet freight demands that can be unrealistic and potentially dangerous. Hauliers cannot use this as an excuse for sloppy risk management,” explains Barry. Transport operators often take on contracts that have unreasonable deadlines and fail to resolve this with the contractor concerned. Instead, for example drivers are forced to drive through the night and take on extended or double shifts. The result is excessive driver fatigue and directly related accidents. Truck maintenance also becomes neglected. “Transporters cannot blame contractors for their decisions. They need to take responsibility for avoiding risky contracts,” he asserts.

Aside from speeding, driver fatigue and poor maintenance of vehicles, insurance underwriters have another issue looming – hazardous goods. “Many transporters do not comply with the latest dangerous goods legislation. They transport dangerous loads through the suburbs and choose not to display the correct hazardous goods cautionary signage." Barry explains the implications of this behaviour, “If authorities are not alerted by the correct signage and an incident occurs, they may not be appropriately prepared for the situation. What appears to be a straightforward clean up can result in loss of life and escalate into a substantial claim. All this could be avoided by displaying the correct signage for the load being carried. The last thing South Africa needs is an incident such as that in July 2010 in the Democratic Republic of Congo – 230 people were killed when a tanker exploded. I don’t want to refer to it but the warning signs in South Africa are being ignored.”

“Where are the responsible citizens?” asks Barry. Self-regulation and self-compliance have become idealistic notions as some unscrupulous transporters take advantage of the situation. “Not all authorities are trained to identify transgressions. Those who can recognise an infringement are often met with pleas of ignorance.

Responsible trucking can easily be attained. Barry highlights and applauds several excellent well renowned fuel companies that comply with and enforce best practices when it comes to transporting hazardous goods. “The legislation is clear. It’s up to the operators to ensure it is enforced. Perhaps a name and shame would encourage unscrupulous operators to comply, but until then, let’s not allow cowboys to get away with dangerous behaviours. Those involved in the transport industry should do their utmost to assist with the issue to the benefit of all road users,” concludes Barry.


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