The road transport industry is raising alarm bells about the insurance liability of trucks with expired Certificates of Fitness (CoFs) during lockdown restrictions.
Although workshops are open as an essential service, the transport industry says the restrictions have led to long service delays which will continue even in a level 3 environment.
The Road Transport Forum says around 1000 CoFs expire each day and the high volume is banking up by the day.
RTF chief executive Nick Leggett says concerns have been raised with the Government but its “she’ll be right” message is not good enough.
“No disrespect to insurance companies, they do the job they do and they service industry well, but the Government is asking trucking operators to simply trust those companies to honour contracts for trucks that cannot have their Certificates of Fitness renewed, driven by drivers who cannot have their licences renewed due to level 4 restrictions. It brings to mind that popular Kiwi saying, yeah right,” Leggett says.
The RTF points out that during last year’s level 4 lockdown in April, Cabinet approved the the Land Transport Rule Covid-19 Response (No1) 2020 Order in Council.
The problem was addressed in a rule made by the Land Transport (Motor Vehicle Registration and Licensing) (COVID-19—Extension of Duration of Motor Vehicle Licences) Amendment Regulations 2020.
This gave a temporary extension of driver licences, endorsements and vehicle certification documents, to help smooth the transition back to compliance.
Leggett says it’s unclear why this rule “can’t be just pulled of the shelf and updated – why reinvent the wheel?”
“Through much of this current COVID-19 outbreak response we have wondered why there hasn’t been better planning; why lessons haven’t been learned,” he says.
Govt working on options
Transport Minister Michael Wood says the Government is “actively working on options for people whose licenses/ Warrant of Fitness (WoFs)/Certificate of Fitness (CoFs) expire during the current lockdown period”.
“It’s important we work through this issue carefully given it involves vehicle safety.
“In the meantime, police and Waka Kotahi have come to an understanding where police will act with discretion under lockdown with expired WoFs/CoFs/licences.
“Safety needs to be the top priority and police will act if they encounter unsafe vehicles, so I would encourage drivers to self-inspect their vehicles using the TWIRL procedure (tyres, windscreen, wipers, mirrors, indicators, rust and lights) to assess their vehicle’s safety.
“Drivers of heavy vehicles should also follow the inspection guidelines on the Waka Kotahi website as a minimum safety check. If you think your vehicle is unsafe you should not drive it,” Wood says.
However, Leggett says being told by the Government that the police will go easy on truck drivers whose licences have expired and/or whose CoFs have expired means nothing.
“They cannot account for the individual police officer on the day. And frankly, they are missing the point. A fine from Waka Kotahi NZ Transport Agency is not the same as losing a $500,000 truck in an accident and finding the insurance company says you’re not insured because you don’t have the right paperwork and/or the driver was not licenced to drive,” Leggett says.
Major insurer responds
Meanwhile, IAG, New Zealand’s largest general insurer, has reaffirmed its support measures for customers impacted by the current COVID-19 restrictions.
The support measures include continuation of cover for vehicles without a current Warrant of Fitness, Certificate of Fitness or if a license has expired.
This is available for customers of AMI, State, NZI, NAC, Lumley, Lantern and IAG’s bank partners (ASB, BNZ, Westpac and The Co-operative Bank).
However customers are reminded that they are required to ensure the roadworthiness of their vehicle.
IAG New Zealand chief executive Amanda Whiting says COVID-19 has brought numerous challenges for many households and businesses.
“As a responsible insurer, IAG is focused on ensuring that customers with the greatest need are looked after.
“This is managed through our customer care team which was established in response to New Zealand’s first COVID-19 lockdown in 2020.
“This team is now a permanent part of our business. So far, we’ve supported thousands of customers through our support measures. Every customer’s situation is unique, and, as such, our dedicated customer care team is committed to tailoring the right solution to meet particular needs.
“We know that level 3 and 4 lockdown restrictions create limitations, and we have adjusted our response to help our customers with these. We are continually assessing the situation and considering how we best support our customers during this time,” Whiting says.
