With the new health and safety legislation coming into operation this month transport and logistics companies embracing the changes, and gearing up to meet the new regulations will be better received by the insurance marketplace and will benefit from superior coverage and price according to a senior manager at JLT Transport.
“The market is driven by price, but if transport industry customers have their fleet risk management procedures in place as part of a health and safety regime, they won’t just reduce the cost of premiums and the cost of a claim but also the cost of lost productivity which can be a significant multiplier,” says JLT Transport divisional manager Philip Clauzel.
The cheapest quote is not necessarily the best says Clauzel, he recommends that rather than chasing the best price, it is better to chase the best and most comprehensive cover.
There are six insurers in the heavy motor vehicle market in New Zealand, being ANDO, NZI/Lumley, Zurich, QBE, Vero and Allianz-backed GT. Only three provide risk management as a value-added service according to Clauzel.
Clauzel recommends that all business customers seeking insurance cover look for an insurance product and an insurance broker that best fits their respective industry.
Regarding the transport sector, when seeking an insurance policy Clauzel says that JLT Transport recommends that new and returning customers ask if the cover provided includes crash scene assistance, fleet risk management capability, a good repairer network and if the claims are handled locally or off-shore.
“Its necessary to an insurance broker to provide the customer(s) with the right product for their operation because many people don’t read their policy document as carefully as they ought to,” says Clauzel.
“The devil is always in the details, and often time poor people won’t read lengthy and complex documents which are not in pure and simple English sometimes,” he says.
Loss of use cover may also be useful to freight and logistics operators in times of lengthy repairs to a vehicle should it be rendered inoperable due to a crash.
Lack of capacity in the specialist truck repairer market means that crash repairs can be delayed, and this is further exacerbated by the need for some parts to come from Europe or the USA for many heavy truck brands operating in New Zealand.
“It is not an uncommon practise for parts to be pillaged off new vehicles in stock, instead of making the repairer wait for replacement parts to arrive from overseas,” says Clauzel.
Clauzel says a specialist transport broker such as JLT Transport offers a service and capability to meet the needs of a specialist business such as freight and logistics.
As a brokerage, it keeps abreast of current industry issues by liaising with the professional trade associations as well as government agencies and trade bodies.
Clauzel says that transport fleets with a good operator rating need to be presented favourably to insurers by their brokers.
“This is where industry knowledge and having a good infrastructure around compliance, procedures, documentation, and placement of cover, is necessary for a broker,” he says.
“It’s important to make sure that your broker has the substance and capability to service your business requirements in such a specialist market as transport,” says Clauzel.
