How to Reduce Accidents and Insurance Claims For Transport and Logistics Operators

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1 How to Reduce Accidents and Insurance Claims For Transport and Logistics Operators Laurence Jones Director Global Risk Assessment TT Club established expertise 1

2 Overview Analysis of the main causes of claims Includes 6 years statistics Over 2000 claims Analysis of all claims over US$ 10,000 Includes all types of claims Bodily injury Other liability Property Loss prevention actions to reduce these claims established expertise 2

3 Global Claims Analysis Operational 63% Weather 4% Maintenance 33% established expertise 3

4 Operational Claims Cargo Issue 4% (Other) 7% Systems & Processes 45% Lift Truck 5% Truck/ Vehicle 10% Theft 29% established expertise 4

5 Systems and Processes Uncollected cargo 5% Release - no B/L 12% Contractual 13% (Other) 4% Bad stowage / handling 21% Customs 17% Clerical error 14% Reefer 14% established expertise 5

6 Bad Stowage & Handling What you can do: Staff training / monitoring Quick risk prediction for abnormal loads Use the correct equipment for handling Develop best practice guidelines for stowage / handling Declare correct weight Stuff container evenly & securely Do not eccentrically load containers Ensure dangerous cargo is correctly declared Refer to the ILO best practice guidelines established expertise 6

7 Bad Stowage & Handling established expertise 7

8 Customs Issues: Mis-declaration of cargo Ensuring T1 documents are closed Lack of or late paperwork Clerical errors in completion of paperwork Drug or immigrant discovery Results: Costly delays Costly fines established expertise 8

9 Reefers Issues: Procedural issues Setting of the correct temperature Incorrect information flow Monitoring Audit trail (Data Logger) Offer clear instructions Verify the condition of the reefer unit prior to loading Compatibility of cargo established expertise 9

10 Contractual Issues Incorporation of Standard Terms & Conditions By signature By notice By reference Ensure back to back liability with sub contractors Contract awareness Full value clauses Fully understand the potential exposures presented Incorporation of industry conditions / International conventions established expertise 10

11 Theft Stocktaking loss 7% (Other) 6% Theft in transit - own transport 8% Theft from contractor's premises 12% Theft in transit - contractor 54% Theft from own premises 13% established expertise 11

12 Theft Contractors issues: 54% of theft costs occur in transit using contractors 12% due to theft from contractor s premises To prevent theft you must know your contractors: Pre-employment checks / references Number of years established Company registration number Country the entity is registered Direct contact details Any affiliations with Industry Trade Bodies Contractors Standard Terms and Conditions Avoid using internet clearing sites established expertise 12

13 Theft Transit issues: 62% of theft costs occur in transit To prevent you should: Send trucks in convoy Only stop at approved truck stops Do not leave truck unattended Alter routes for regular deliveries Only use approved transport contractors Use tracking devices Share bad experiences Effective use of available technology established expertise 13

14 Theft 13% of theft costs occur from own premises To prevent you must have: a physically secure site good fences systems and procedures to deter and detect: security guards CCTV monitoring automated gate control system checks and double checks on paperwork Remember - most thefts are inside jobs Refer to TT Club Supply Chain Security booklet Available at established expertise 14

15 Fires (Other) 20% Building 47% Cargo on land 14% Cargo on vessel 19% established expertise 15

16 Building Fires 47% of claims costs due to building fires $31.8m in last 6 years Most due to electrical faults Prevention actions: Fire risk assessments Correctly identify and declare dangerous goods Install fire detection and suppression systems Regular tests and inspections of fire fighting equipment (including sprinkler systems) Regular statutory inspections of electrical installations Effective use of available preventative technologies Thermographic surveys of switchboards No smoking policy Good housekeeping established expertise 16

17 Cargo Fires 33% of fire costs caused by mis-declared cargo. What can you do to help prevent: Correctly declare dangerous goods Cargo compatibility Safe minimum stowage separation Flash or ignition point Training and education / qualified personnel Legislative (IMDG) awareness established expertise 17

18 Summary Is it worth the cost and time to do things safely and correctly? Definitely YES Produces Injury reductions Cost savings Increase in efficiency Productivity increase More efficient deployment of employees Improved customer relations Reduced insurance claims and premiums All of which can be achieved through established expertise 18

19 Loss Prevention Focus Training: Continuous safety awareness Container stuffing and securing Mandatory dangerous goods training for all shore side staff Procedures: Building fire prevention Theft prevention Contractor management Site security Systems & processes procedures Cargo stowage and handling Customs Contractual issues Re-design/Technology: Container weight & eccentricity measurement GPS Tracking devices / security control established expertise 19

20 Do not be complacent about safety Plan ahead and be prepared established expertise 20

21 Thank You Laurence Jones Director Global Risk Assessment - TT Club [email protected] Specialist insurance products and services packaged for the international transport and logistics industry established expertise 21