1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184 
Security's at a pre °mi um
Page 18
If you've noticed an error in this article please click here to report it so we can fix it.
Insurers have hit back at the SMN/T's claims that they are failing to reward improvements to truck security with reduced premiums. Jennifer Ball reports.
In last week's CMRobin Dickeson, the Society of Motor Manufacturers and Traders' manager of commercial vehicle affairs, questioned the value ofThatcham's truck security rating system. He claimed that insurers have not passed any of the benefits of cost reduction from better security onto operators (CM18 November).
Benefits
But insurers are insisting that investing in a vehicle with top-notch security does lower your insurance premium. Graham Davies, director of insurers MR Ratcliffe Consultants, explains that under a "book and bonus" schem e, which is the method many insurers use to calculate pre miums for operators running a small number of vehicles, insurers will offer reductions for security devices.
But he warns that this is not the case for fleet policies, which are calculated according to a firm's previous claims record: "If an operator has no history of theft but introduces security, it will have no bearing on his claims. But for an operator whose premium is high because of a history of theft claims,improving security could lead to a reduction in his claims. This will obviously then reduce his claims experience so he will be seen as less of a risk than previously, whichin turn could reduce his premium."
Norwich Union Insurance, which played a part in the steering group developing the Thatcham system, has welcomed the ratings as a way of comparing the security of various makes and types of truck.
Motor underwriting manager Andy Keane, says: "Thatcham ratings are something that we consider along with a number of other factors such as the loads that are carried, the driver's age and where the vehicle will be travelling to. But they could make the difference between whether or not we decide to cover a vehicle."
Reductions
Better security can also reduce your Goods in Transit premium, says Tony Gardiner, group broking director at Davis Group.
Some insurers insist on a specific Thatcham rating and panic buttons if a company is carrying a high-value load such as mobile phones or computer chips: "Operators need to consider the risk of having inadequate security.
It could mean that they have a serious truck theft claim, which would prevent them from getting affordable insurance in the future," he warns.
Chris North from RHA Insurance Services argues that truck manufacturers should look beyond whether improving security of their vehicles will cut insurance premiums: a good quality security system can be used as a sales feature: "If figures about truck security are published then truck thieves will know which vehicles have good quality locks and turn their attention to softer targets."
With seven operators a day falling victim to truck crime can you afford to buy a vehicle with poor security? The cost of having a truck stolen goes far beyond the cost of the vehicle and load or whether insurance premiums will fall. Ultimately it could lose you your customer. •