We are excited to announce that we will be extending our focus under the Transport banner to Commercial and Corporate fleets.
Whilst our previous focus has been on the Transport of customers goods for reward industry on a specified fleet basis, we will now add insurance of unspecified fleets as an additional focus.
These fleets are usually for carriage of their own goods or as support vehicles for a larger commercial enterprise. The entry-level will be fleets of 30 vehicles or more.
Our product will include the following features and optional covers:
- Unspecified basis with quarterly, biannual, or annual declaration adjustment dependent on fleet profile and progression.
- Annual or monthly premium payment options.
- Retail or agreed value settlements.
- Flexible excess structures.
- Full range of add-on covers such as non-accident towing, roadside assist, excess buy-downs and driver personal accident, to name a few.
- Car rental for light vehicles including LDV’s with or without canopies. Options for 30 and 45 days.
- Increased liability options up to R50 million.
- Static Risk cover for parked vehicle accumulations.
- Environmental liability and spillage clean-up from accident sites as an option.
- Aggregate Funds.
- Burners.
- Profit shares.
- Retained and Lodged Funds.
- Excess-free windscreen replacements (applies to alternative glass only) via our Windscreen replacement team.
- 24/7/365 Incident Managing Centre
- Access to Telematics service providers for tracking and advanced systems that incorporate real-time video footage technology and risk management.
The advantages of the Motor Fleet product are mainly in the reduced administrative burden and flexibility of cover. We offer tailor-made solutions to suit the client’s specific needs.
The main structural difference is that individual vehicles are not specified.
- Vehicles are divided into vehicle types and grouped together.
- Only total insured value and vehicle numbers per category are shown.
- Rating is generally uniform and based on total fleet value and claims experience.
- Maximum limit per vehicle applied for the overall fleet or according to the different categories in the fleet profile.
- It is important to set such limits so that additions are not automatic when the set value is far exceeded.
- Underlying policy is the HCV Motor wording even though some fleets will not contain any HCV-type vehicles.
- Maximum location limit is R30 million as written into the HCV policy. This limit can be increased to R50million and at a stretch R75million.
- Policy allows for automatic additions so there is no need for individual notifications except when:
- The Maximum value limit is exceeded.
- Should there be a claim on a vehicle added after inception/renewal and the vehicle detail is required to handle the claim.
- A detailed vehicle list will be required at inception/renewal with sufficient detail to assess actual value based on the chosen basis of indemnity
- This list will be lodged on the policy document and be available to claims and IMC to handle claims or manage incidents and arrange windscreen replacements.
- The intention is not to operate in the HCV space as our preferred product for Transport clients is the specified fleet basis.
- The target market is commercial fleets that do not outsource their logistics requirements to commercial transporters and other vehicle fleets that are support vehicles for the main enterprise or light vehicle fleets such as vehicle rental companies and small couriers and delivery vehicles (own produce/goods).
- There is no requirement for supporting commercial business as we accept Motor Fleets as a standalone product.
- Retail value including the value of fitted accessories and permanent fixtures and equipment is default settlement basis, but we do offer Agreed Value in line with HCV policy conditions.
- Adjustment is on the 50% of difference basis. The difference between opening and closing values/numbers is charged out at 50% of the additional/return premium based on the ruling premium rate being applied to the difference in value/numbers. This method presupposes that changes to the fleet occurred at different times of the period but to avoid admin strain, it is assumed that on average the changes equalized to be fairly presumed to have happened at half term of the period of insurance.
- Value reductions, particularly on fleet that are insured on an agreed value basis should not generate a refund as we know that vehicles are depreciating assets so if there are no changes between opening and closing declarations, apart from the fact that the insured vehicle assets have reduced in value, it would not be our intention to provide a refund based on the reduction in value due to depreciation during the insurance period.
- During the Fleet product development phase, it might be necessary to gross up the rate to include some extensions as not all the options provided under the HCV-specified vehicle policy are available on the Fleet profile.
- No standard excess structure. Generally, a percentage of claims with suitable minimum excess levels and double the basic for theft. Excesses are negotiable per risk and linked to the level of premium and risk factors per fleet.
Excluded Fleets:
- Security (especially armed response vehicles).
- Emergency Response vehicles.
- Cash collection vehicles.
- Local Government/Municipality fleets (low level of rating), Car movement on own wheels risks , Floor plan/Dealer stock Vehicles.
- Motor Traders.
- Towing and Recovery Fleets.
- National Car Rental Agencies.
Should you wish to have a chat on any aspect of the product or to enquire about the quote process, please feel free to contact your Portfolio Manager or any of our Transport managers.