Leading freight transport insurer, TT Club has carried out a mass analysis finding that a number of insurance claims can be prevented or reduced, by sensible risk management.
Speaking during this week’s TOC Asia Container Supply Conference in Singapore, TT Club Asia-pacific regional director, Philip Emmanuel drew attention to a series of causes leading to claims by transport and logistics officers.
“While these causes are varied; ranging from theft and poor maintenance of equipment to bad cargo handling and packing and clerical error; they share in common the fact that through good training, the employment of best practices and detailed monitoring and checking procedures, the vast majority are avoidable,” emphasised Emmanuel.
TT Club viewed over seven years worth of data on claims made by transport and logistics operators.
Claims varied from bodily injury to property and liability.
Out of the 2,600 claims reviewed, just five percent were caused by adverse weather conditions, whilst a quarter were due to poor maintenance of property or equipment.
The majority of claims were put down to a failure in some shape or form, with regards to the operation.
Emmanuel was quick to highlight that lessons must be learnt from the data provided: “Here we found that over a half of incidents involved the internal systems and processes of the operator and another quarter were due to theft. These types of claim are most assuredly to be placed in the category of preventable,” he said.
The conference presentation provided examples of how a number of situations where cargo that was badly stowed, packed, loaded incorrectly or simply handled poorly in general, could result in damage to cargo and injury to staff.
As such, transport and logistics operators were strongly urged to employ effective monitoring and checking procedures, a regular training regime and to maintain industry best practice for both safety and security. Such action not only saves staff from injury and assets from damage, but massively reduces overheads by both reducing insurance costs and minimising delays.
Emmanuel concluded by noting that TT Club can, and frequently does, offer effective advice on loss prevention and risk management, stating “Prevention is a combination of safe and physically secure facilities and equipment; rigorous checks and double-checks on paperwork and information flow combined with well-trained, well-motivated employees and trusted partners.”