Integrated insurance policy covers all bases

In the highly competitive domestic transport market, minimising risk demands an integrated and holistic approach, says Bimesh Ugarchund, director of specialist marine insurance broker Eikos Risk Applications. Transporters should look beyond ‘one dimensional’ insurance solutions that are often restrictive in the risks covered because this results in the transporter having to foot the bill for many losses. “At Eikos Risk Applications the policy we offer is a marine cargo insurance and liability facility designed to provide goods in transit insurance, carriers’ liability cover, container cover, pollution liability cover, tarpaulin and packing material cover, all under one policy. These aspects can be tailor-made to the client’s specific profile and requirements,” he said. But besides having smart insurance, transporters should also look to technology solutions and tools to make their risk management and insurance more effective. “Technology ensures a much more efficient and ‘value-added’ deliverable to the customer. For example, bespoke claims reporting enables the customer to analyse losses and identify causes and patterns of losses,” says Ugarchund. “The role of the transporter is complex, competitive and challenging,” he added. “Sometimes, desperation to secure or retain business may lead operators to cut corners on vehicle maintenance, insurance and qualified drivers which can potentially cripple a business. “But where margins are minimal, transporters cannot afford to carry losses,” he says. “Transporters’ roles are varied with them often acting as either or both principal contractors or agents to other transporters, brokers, C&F agents and more. They may or may not assume liability for the cargo, containers and other related activities by way of a contract – such as Standard Trading Conditions. Not meeting these responsibilities or liabilities can mean the transporter being held liable for losses, he explained. To manage and avoid these risks, transporters must implement and enforce basic risk management principles in their operations. “They should combine this with a tailormade insurance solution to minimise the contractual and cargo risks they assume or are exposed to,” he added. Finally, transporters should always behave as if they’re uninsured – which means proactively avoiding risk at every turn. CAPTION Bimesh Ugarchund … ‘transporters should always behave as if they’re uninsured.’