Individual Insurance

Fleet operating cost can be huge expense for any organisation. Adding insurance cover may help reduce the maintenance and accidental wear and tear cost of the fleet. Here are some methods which can reduce the premium you will have to pay for such insurance:

Claims Records: Know your claims history clearly. Ask your insurer for validated claims information. Analyse information for last 3 years including, frequency of reimbursements, types of risk, and outstanding amount. Note areas for improvement and communicate to your employees.

Buying Insurance Policies: Understand from your insurer on best policies. Combine policies reduce the cost of premiums. Combination of public and employee liability is one example to reduce premium. A retainer relationship with insurance companies means better price for you. There are tailor-made policies for your companies as well.

Know Your Requirement: Small and medium sized fleets may not require a third-party policy protection. Analyse the kind of claims made in the past. Small risks can be covered through local mechanics also.

Comprehensive Insurance Policy: Opt for comprehensive insurance policy if you have a small fleet size. It usually covers damage due to third party.

Know Your Driver: Understand your driver’s profile. Consider their driving style, age, past experience, and driving license as proof. Tell them that accidents are being monitored. Have training programs for drivers. Training module should include defensive driving to advance techniques. Get complete police verification done for all the drivers.

Camera Technology: Truck collisions on highways is common. It is dangerous and costs a lot. Use of cameras will improve driver’s on-road navigation. It will also help in better assessment of accidents on-record.

Vehicle Trackers: Will help you monitor driving of your employees. It will help in tracking of stolen vehicles. If you need secured parking hours, then use equipments to immobilize vehicles.

Install Alarms: Will ensure safe parking, safe long drives, and increase vehicle protection.

High-Value Vehicles: Give clear priority to the high-value vehicles in your fleet list. Try and appoint drivers with safe track record, for driving high value vehicles.

Less Value: Use fleet of vehicles which have low value and require less maintenance.

Insurance Renewal

Search Online: Do an online search to compare premium amounts, discounts, etc. Any additional information will help you negotiate better with your insurance company.  

Close Assessment: Don’t invest in extras. You don’t need to buy a risk cover for windscreen or parts which cost less.

Insurer’s Profit: Know your insurance company and facts on your claim. A big claim by you does not mean a loss to the insurance company. There are taxes, charges, higher premium to be paid after claim.

No Delay in Settlement: Make no delay in reporting your claim. Any delay is likely to increase the insurer’s expense on replacement. This will reflect as a bad experience in insurer’s record later.

Self-Insurance: Drivers which are prone to accidents should be insured separately. Don’t insure their vehicle as a part of fleet insurance.

Case on Motor Fleet Insurance Premium

Motor company had a fleet of 50 commercial vehicles. The motor company had insured the total fleet through one comprehensive motor insurance policy. All drivers were given appropriate training. One of the vehicle was driven by X employee. X is a young male with few months of experience. He once met with a small accident. The windscreen, headlights and small damage to the front of the vehicle.

Only the damaged front-body portion is covered under insurance. Cost of repair to windscreen and headlights in out-of-pocket expenditure. Motor company decided not to make a claim for the dent. The cost of dent was small though. It was better negotiated with a known local mechanic. Had the motor insurance company made a small claim, it would have counted as a claim and the premium discount of 15% next year would be denied.

The motor insurance company studies the pattern of driving of X. They realized he is prone to small risks and therefore, a major accident. They took a separate employee insurance policy for him, for any risk or damage to his life or vehicle. A separate claim can be made only for one vehicle. Motor company thus saved ‘extra-premium’ cost against risk of repeated claims.