The exposure for this class is extreme. Long distance trucks suffer a high accident rate, contributed to by a number of factors including the amount of time on the road, the generally low rates of pay and heavy competition, the size and radius of operations, driver fatigue and vandalism at the depot. The nature of goods and safe storage and handling of the same are also important considerations. Caution is required where the fleet transports dangerous goods.Good fleet management and safety policies, as well as regular maintenance of vehicles are essential.
With an established transport company the primary underwriting guideline must be the loss history. Many factors contribute to the loss rate, so frequent reviews are recommended.
The underwriter/adviser will also generally need to establish:
· the business activities;
· the type of goods carried;
· recruitment policy/criteria to ensure that drivers are assessed on the experience to operate these vehicles;
· whether there is any capital improvement and/or customisation done on the vehicles for intended use;
· operating radius and frequency
· maintenance and risk management programs
An important consideration with this occupation is whether management takes into account safe driving practices, fatigue management etc. when setting schedules / allocating jobs – particularly with subcontractors. It should be appreciated that even though the prime mover could belong to and be the responsibility of the sub-contractor, the trailer could well belong to the insured (and of course, there is also the liability to the owner of the load to consider).
The generally low rates of pay and heavy competition may encourage owner drivers in particular to sacrifice safety as they attempt to maximise income by speeding and working long hours. Fatigue is a possible issue.
Transport operators will have a requirement for a carrier’s insurance program possibly including a combination of a carrier’s liability cover based around their written terms and conditions of cartage and a “Goodwill” type cover (e.g. Nominated Client’s cover to protect their commercial relationships.). They may also have a requirement for cover for their own goods e.g. spare parts, consumables, fuel etc. Exposure for customer’s goods will clearly vary considerably with the type of goods transported and also contract terms.
This cover specifies the events which underwriters cover when loss or damage occurs. Typically, these include:
· Fire, hail, explosion,lightening or flood
· Overturning, jackknifing or derailment
· Impact of the goods with an external object (except for the road etc. due to dropping off the truck)
· Strikers, rioters,locked out workers
· Damage caused by a third party
This cover is very basic, thus, there are some optional extensions which can be taken out at an extra premium. These options provide very limited accidental loss or damage coverage for certain situations which correspond with some of the common situations where losses are likely to occur. Typical options are:
· Accidental Damage during loading and unloading
· Theft, pilferage or non-delivery
· Mismanagement normal function of refrigeration machinery
· Shedding of load
The marine underwriter will generally look for the following in considering the acceptability of a consignment note of contract terms and conditions:
· A definition of carrier,consignor, consignee. The name of the carrier in particular should be recorded on the terms and conditions in full (including subsidiaries, ABN number,registered business address etc.
· A consignment note should record the Sender and Receiver’s details on the front page, as well as a full description of goods
· On the consignment note there should be space for sender’s signature accepting terms and conditions.For long term/multiple shipment contracts there should be written acceptance by the owner of the goods.
· Consignment notes should always have space for the receiver’s signature evidencing the safe receipt of the goods
· A consignment note will generally have the terms and conditions printed on the reverse side. There is a risk that a claim could be made successfully against the carrier on the basis that the consignor’s attention was not drawn to the printed terms. Therefore it is advisable that the front side of the consignment note displays prominently words to the effect that: “We are not common carriers – terms and conditions overleaf”
· The written terms and conditions are clearly the key to protecting the insured and the wording of the exemption/disclaimer clause and a statement that the carrier is not a common carrier is central. However, the terms and conditions should also contain:
· Delivery provisions
· A deviation clause permitting the carrier to transport the goods by any route and a statement that the carrier makes no warranty as to method of shipment
· A reference to the Trade Practices Act
· In terms of the use of subcontractors, provisions are required in the terms and conditions:
· Specifically acknowledging the carriers right to subcontract the load and stating that the principal carrier enters into the contract as “agent for” the subcontractor
· Specifically stating that the terms and conditions also protect the subcontractor
Transport Insurance Broker Brisbane:
Hunter Broking Group can assist with Transport Insurance & Motor Fleet Insurance. Through industry specific insurers, your designated advisor has access to a comprehensive range of insurance products that can be tailored to suit most transport operations and logistics services. We can arrange insurance for various segments in the transport industry including:
Hunter Broking Group pride themselves on having a local presence with a national strength, our technical product experience allows us to manage and service transport insurance products such as:
Transport Insurance is a core focus for our advisors, whether we are looking after small tipper trucks or large prime movers, Hunter Broking Group have the experience to provide the appropriate advice for your size and risk exposures.
Our experienced brokers can help you get the most appropriate insurance cover by assessing your specific needs and recommending the best value insurance solution for your business, whilst still maintaining the highest standard of cover.
Surround yourself with professionals who make your life easier, when you call through to us – this is our objective.