Paul Dangerfield | Understanding trucking and keeping safe
It is critically important to have truck (comprehensive motor) and goods-in-transit insurance in South Africa and these are no longer deemed grudge purchases because of the significant value a specialised insurance policy adds to a business.
The volume of trucks on the country’s roads has significantly increased over the last 24 months due to the failed rail infrastructure and the massive export demand for our mineral products, such as chrome and manganese. South Africa is also the third-largest exporter of coal. These products are predominantly transported by side tippers to the ports of Maputo, Richards Bay and Durban.
The resultant increased traffic congestion means that road surfaces deteriorate faster and deep potholes develop. The authorities’ inability to repair road surfaces and potholes at the required rate means a significant increase in damages to vehicles and, frequently, load shifts, causing damage to goods in transit.
Hollard is seeing a significant increase in accident claims stemming from road congestion. It is imperative fleet owners have comprehensive insurance, not only for their own damage, but also to cover them when a third-party vehicle or other property is damaged. Hollard contracts with all the major commercial vehicle repairers in South Africa and our aim is to have vehicles repaired and back on the road generating an income as quickly as possible.
A truck insurance policy should have as a value-added benefit the provision of defensive driver training, as this greatly reduces the number of accident claims caused by tailgating, harsh braking and lane changing without proper checks.
Defensive driver training, as provided by Hollard Trucking, also reinforces the importance of rest breaks, the wearing of seatbelts and avoiding the use of cellphones while driving. Distraction caused by the latter is a significant contributor to head-on and rear-end collisions.
When effectively applied, defensive driver training also reduces fuel and vehicle-maintenance costs.
The benefits of having a comprehensive truck insurance policy include that your insurer will handle all third-party approaches and any legal action against you following an accident, whether your driver was negligent or not.
If your driver is not at fault, your insurer will also recover the cost of your damages from the negligent party. This, in turn, keeps your claims ratio low, helps you qualify for potential low-claim bonuses and keeps your premiums reasonable and in line with your operational cost budgets.
A transporter may not carry a load for a cargo owner without taking out a goods-in-transit policy. Such a policy not only covers the fleet owner for damage following an accident but, even more importantly, provides cover against the rampant organised crime against trucking companies in South Africa. Everything we need in our daily lives is transported by truck, and every load is potentially a target for criminals.
Due to the ongoing load-shedding crisis, there is a huge demand for solar panels, inverters and batteries across the country. These loads often require additional security measures while in transit, such as trailer-tracking devices and armed escorts. These elements may be conditions in goods-in-transit policy contracts.
The high unemployment rate and extremely difficult economic conditions that South Africans currently face are among the drivers of the increased criminal actions affecting the trucking industry, specifically when it comes to fast-moving consumer goods and commodities such as soya oil cake, used to manufacture chicken and other stock-animal feed, as well as dog food.
A goods-in-transit policy protects the customer against physical damage to goods resulting from a sudden, unforeseen or unexpected event – of which there are currently many on our roads.
It is imperative to have this cover, and we recommend that transporters consult with a truck and goods-in-transit specialist insurance broker to ensure that their policies adequately cover them against all insured risks – and so that cargo owners feel reassured about the movement and safety of their goods.
*Paul Dangerfield is Head of Trucking – Hollard
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