AT THE HEART OF THE ROAD TRANSPORT INDUSTRY.

Call our Sales Team on 0208 912 2120

Grain code is set to force up premiums

31st August 2000
Page 8
Page 8, 31st August 2000 — Grain code is set to force up premiums
Close
Noticed an error?
If you've noticed an error in this article please click here to report it so we can fix it.

Which of the following most accurately describes the problem?

by Charles Young Grain hauliers who sign up to the industry's voluntary code of practice face a sharp rise in insurance premiums to cover themselves against far reaching liability costs.

The UK Agricultural Supply Trade Association (UKASTA), which operates the code, says that if hauliers are found to be responsible for a sub-standard batch of grain they could be liable for costs covering anything from a replacement batch to a supermarket recall on a delivery of bread.

Donald Armour, road freight policy manager at the Freight Transport Association, warns that hauliers are likely to find it difficult to buy this sort of cover "Insurers I have spoken to say the premiums would be prohibitive and the losses might even be uninsurable. This would appear to be a can of worms. Who's going to police it and point the finger at the haulier?"

Jeremy Smith from UICASTA believes it will be possible to buy the appropriate insurance, but he accepts that operators' premiums are likely to be much higher this year to cover the extra liability.

If the fault can be traced back to the haulier there's culpability and liability there and the insurance would have to cover that," he adds.

Smith believes that it will be up to the grain merchant to point the finger at the haulier if he is happy that a consignment of grain left him in the proper condition.


comments powered by Disqus