Dodgy drivers can void goods in transit insurance

If you want to avoid having your insurance policy repudiated, check drivers’ credentials. That’s the advice from Cas Weeks of Africargo and Transit Surveys, who points out that some Goods in Transit insurance policies exclude liability where it can be proved that the driver is involved in the theft of the cargo. “If a driver disappears there is no complainant and accordingly a case of hijacking cannot be opened with the SAPS,” says Weeks. A case of theft is therefore opened and in most instances where the driver has disappeared he becomes the number one suspect in the matter. The repercussions are that the transporter may then have to attempt to prove his driver’s innocence – a difficult task especially if the driver cannot be located. The financial effects can be crippling for the transporter as investigations can take time and his client may elect to simply deduct the loss from haulage fees due to him while investigations continue.” Another reality is that the cargo owner and his insurers may pursue recovery against the transporter – and if the transporter’s insurers repudiate the claim due to the transporter not having driver fidelity cover in place, he may be left to carry the proverbial can, says Weeks.