Advertise Here
Icon

Directory

IconActuaries
IconAssociations & Institutes
IconAuditors
IconBBBEE Consulting and Verification Agencies
IconBusiness Chambers
IconBusiness Process Management
IconBusiness Process Outsourcing
IconCall Centre Outsourcing & Sales
IconCompliance
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDebit Order Collection Facilities
IconEducation and Training
IconFAIS
IconHuman Resources
IconInformation Technology and Software Partners
IconLegal
IconLife Insurance Companies
IconLife Insurance Products
IconOmbud
IconOutbound Sales
IconPolicy Administration
IconPolicy Trading
IconPublications
IconRe-insurance Companies
IconRegulatory Authorities
IconSales and Sales Management
IconSocial Grants (Government)
IconSurveys and Research
IconTraining Courses & Workshops
IconWellness Programs
Advertise Here
  Subscribe To »

To insure or self-insure? A conundrum for fleet operators

Published

2021

Thu

04

Mar

Company Listing: Indwe Risk Services »
 

Johannesburg, 4 March21: Fleet insurance is essential for businesses with vehicle fleets and drivers. With proper management and meticulousness, fleet managers can reduce insurance costs, improve the safety of employees and benefit from as much insurance cover as is required. But with escalating insurance costs, many fleet managers, particularly those overseeing large fleets, are opting to partially cover their vehicles and even opting to self-insure.

 

Insurance is an expensive mechanism to protect losses. Insurance premiums comprise broker commission, administration costs, costs associated with collecting funds (for large claims) and profit. So, what would be a R100 claim, for instance, can easily end up costing R140. For this reason, it is important to consider whether you should be insuring or self-insuring all of your risks.

 

From truck insurance for SMEs to comprehensive insurance for large logistics businesses with substantial fleets, there are flexible, commercial vehicle insurance options suitable for the requirements for any company. If you operate in the logistics industry, then it makes sense to take out commercial vehicle insurance with expansive territorial limits and goods-in-transit cover included, so that you are covered if something should happen to your vehicle, driver and/or cargo at the border post or in a foreign country.

 

Similarly, if you run a shuttle service, you may want to consider taxi insurance and supplement it with fleet insurance. Taxi insurance includes liability cover, which ticks the box of covering the risk of personal injury and even death when transporting people.

 

However, some risks don’t warrant the cost, time and effort involved with high excesses and claiming from an insurer. If you have a stable fleet, reliable drivers and can accurately predict the associated fleet costs, then you could take a particular risk upon yourself or even outsource a portion of the risk to an insurer.

 

One of the more obvious risks that fleet operators can consider taking on, is windscreen cover. Accurate, historical stats can provide insights into the frequency and severity of windscreen claims. Armed with these insights, a simple calculation is all it takes to determine whether the sum of premiums and excesses are more or less than the cost of paying for the replacements out of your own funds.

 

By self-insuring windscreens, fleet operators will be motivated to negotiate the best deals from windscreen suppliers, thereby bringing down the average cost of repair. Fleet operators will also take risk mitigation actions, such as ensuring that all rules are followed according to the fleet vehicle policy, to minimise the occurrence of these incidents. The bigger one’s fleet, the more financial sense it makes to self-insure against windscreen losses.

 

Unsure of whether to insure or self-insure? Visit www.indwe.co.za

 
Source: Indwe Risk Services (Pty) Ltd
 
« Back to previous page Print this page » |
 

Breaking News »

Ease of funeral claims in a growing claims environment

Wednesday, 14 April 2021 - International trends show a significant possibility of a resurgence of Covid 19 hitting South Africa in the next few months. Considering the significant increase in life insurance and ...
Read More »

  

Technical Excellence – Principles and Practice

Technical excellence is a term that is often cited in insurance, and especially so in relation to AGCS’s international clients with their complex risk profiles. But while it is frequently used, what does ...
Read More »

  

SAIA Bulletin -  March 2021

From the Desk of the Chief Executive: Viviene Pearson   In ...
Read More »

  

First edition of the Ombudsman’s Briefcase for 2021

In our first edition of the Ombudsman’s Briefcase for 2021 we take this opportunity to wish you a safe and prosperous year ahead. We face this year with a little more hope having emerged from a second wave ...
Read More »

 

More News »

Image

Healthcare »

Image

Investment »

Image

Retirement »

Image

Short-term »

Advertise Here
Image
Image
Image
Image
Advertise Here

From The Glossary »

Icon

Domestic Insurer:

In South Africa, an insurer incorporated in the Republic.
More Definitions »

 

Advertise

 

eZine

 

Contact IG

 

Media Pack

 

RSS Feeds

By using this website you agree to the Terms of Use.
Copyright © Insurance Gateway (Pty) Ltd 2004 - 2021. All Rights Reserved.