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RECESSION-RELATED INSURANCE PROBLEMS

26th March 2009, Page 17
26th March 2009
Page 17
Page 17, 26th March 2009 — RECESSION-RELATED INSURANCE PROBLEMS
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Most insurers confirm brokers' warnings that premiums are going to go up, not down, in the recession. Mike Smith, commercial motor technical manager for Norwich Union, adds that hauliers may well face other recession-related problems as the downturn continues.

One of these is that thefts of vehicles and their loads tend to increase in a recession. Fuel and catalytic converter thefts are also on the up, suggest figures from Norwich Union.

Fraud is another problem that often gets worse in a recession and hauliers should be aware that staged accidents are not unknown. Every driver, regardless of who they work for, should be aware that others may cause deliberate collisions in order to make a false claim, says Smith.

Smith adds that hauliers should also be aware of the possibility that some drivers may be moonlighting and using company vehicles for extra work of their own outside normal working hours.

Checking your drivers' credentials is crucial too. Smith says: "People become desperate for a job and drivers may be tempted to cover up previous incidents and convictions."

Tags

Organisations: Norwich Union
People: Mike Smith

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