Unroadworthy vehicles could void insurance

Delays in freight delivery, particularly with regard to time-sensitive goods, are currently a major challenge in Gauteng and these are generally not insured under a marine or goods in transit (GIT) policy. “It is imperative that customers arrange cover for loss or damage as a result of delay, should this be a risk,” said Hugh Reimers, managing director of Eikos Risk Applications. He noted that there were a high number of freight accidents on Gauteng roads due to inadequate driver training compounded by increased congestion and poor road conditions “Unfortunately too, many roads still remain in a poor condition, and the risk of damage to vehicles remains, regrettably, very high,” said Reimers. He noted that operators involved in long distance-distribution should closely monitor the roadworthiness of their fleet. “Gauteng may be a lucrative province for your company, but in the event of an accident, an insurer will only consider a claim if the vehicle is completely roadworthy. In the event of a claim, if you are a cargo owner, your vehicle will be inspected, and if you are in any doubt about the criteria for roadworthiness, chat to your specialist marine broker for assistance with this,” he said. Reimers also cautioned against reducing costs around insurance. Even though it may be tempting in tough economic times, it could be crippling in the long-term. “Gauteng continues to be a source of potential growth for the logistics industry, and while we must celebrate this, it is imperative to note that successful companies will be those who have identified the risks in their supply chain and have taken the necessary steps to create sustainable solutions,” said Reimers.