Brand Pretorius... ultimately the industry must take ownership of finding its own workable solution.

The appalling accident rate on South Africa's roads can be ascribed to a number of contributory factors, all of which make the task of insuring a vehicle a rather complex one. Most insurers cross-subsidise higher risk portfolios with lower risk portfolios, effectively making law-abiding operators 'pay' for the industry's outlaws, says OUTsurance's Brand Pretorius.

The shift from rail to road transport, combined with continued growth in passenger vehicle sales means that thousands of new vehicles come onto our roads every month, which certainly increases accident risks significantly, says Pretorius. "The absence of proper maintenance of our roads in certain areas, the increased traffic volumes, specifically that of heavy commercial vehicles, has resulted in significant deterioration of roads in some instances. This obviously also contributes to the frequency of accidents involving trucks." 

Risky new entrants
Adding to general on-road risk are many new entrants into the transport industry who through inexperience, and due to the relatively high demand for such services, are prepared to take shortcuts with regards to adhering to industry and legislative safety standards and requirements, adds Pretorius.

"Companies use drivers who are not properly qualified or trained. We see many false drivers' licences, drivers without the required PDPs and a general absence of proper driver training," he says. "Poor vehicle maintenance, specifically with regards to tyres, brakes and axels, poor driver management and incidents of extreme fatigue and overloading characterise these 'outlaw' operations."

Separating good from bad
The OUTsurance business model differs to those of its competitors, explains Pretorius. "Our advanced risk-rating model and systems allow us to differentiate between high risk and low risk clients, resulting in clients paying a premium relative to their individual risk profile. All insurance companies need to take a harder line with transport companies that do not adhere to the required legal and industry standards. If operators are found to be non-compliant, claims must be rejected. Failing this, it will be very difficult to address the issue of truck accidents and on-road risk effectively from an insurance point of view."

Taking ownership
The overall public image of the road transport industry is tarnished by the rogue element within it and it may be the general perception that shoddy transport practices are condoned by stakeholders in the industry. "Ultimately the industry must take ownership of finding its own workable solutions. We therefore welcome any initiative that is aimed at improving road safety and minimising the risks on our roads," concludes Pretorius.