FleetWatch Online - 31-Back on track

The Vehicle Security Association (VESA) was originally established to control the fitment and performance of vehicle tracking systems. In recent years, major tracking companies have disassociated themselves with the organisation, with the statement that having gained certification from the insurance industry themselves, VESA membership was no longer necessary, especially in light of the claims that VESA was adding no value to their annual membership fees. Despite these setbacks, VESA has survived and is being pro-active in getting fleet management systems accredited by the insurance industry. Paul Collings spoke to new VESA chairman, Allen Harrington, CEO of Orbtech Holdings, about the recent turnaround.

The processes and standards implemented and enforced by VESA have become an industry norm –

Allen Harrington

Q: VESA is 'under new management'. What were the issues driving this decision?
A: VESA has a charter that it has to deliver on. In recent years, as a result of legal and internal political discord, management lost sight of this. The attributes of management's style changed and the focus was on the "fight" and not the "plight". Not that this points fingers at the management as such: this is a phenomenon prevalent all over the world. When a "secure" organisation is questioned, attacked, challenged or externally forced to change, management's first reaction is defence. This soon changes to attack. Then the fighting starts. Unfortunately, this "fight mode" is carried through to the market and their focus in turn is also directed at the fight, instead of focusing on the value proposition. VESA needed a "revival" and the members felt that new blood would fast-track this.

Q: Are insurance companies starting to give discounts on premiums to vehicles fitted with Fleet Management Systems, or are they still stuck in the 'tracking' mindset?
A: The insurance industry is starting to accept the fact that their risk does not lie solely in vehicle theft and hijacking and that a substantial portion of their risk is contained in incidents related to vehicle abuse. VESA is actively promoting this fact on behalf of its members. In relation to this, VESA has now combined its Stolen Vehicle Recovery Committee and Fleet Management Committee under one committee - Telematics - to alleviate the confusion on the system/company service delivery and capabilities.
VESA and SABS have also recently entered into an agreement whereby VESA, in conjunction with the SABS, will formulate and maintain the standards, specifications and requirements for Fleet Management systems. Other than establishing a measurable standard, this will obviously enhance the credibility of these systems in insurance and related industries

Q: Does VESA have to comply with any insurance 'codes of practice'?
A: VESA is a regulatory body that formulates and enforces standards and regulates quality of products and installation through an accreditation process. Its code of practice is compiled to fulfil this charter. As a result of, and the manner in which VESA has fulfilled its obligation in terms of its charter, VESA not only fulfils a vital role in terms of assurance to the insurance industry relating to these quality standards, it also enhances their risk management through its certification process - i.e. verification of vehicle particulars and existence, verification that applicable security product is installed and functional, etc.

Q: In what way does VESA accreditation differ from SAIA's?
A: VESA's process includes stringent testing of products, validation of company viability, validation of fitment procedures, as well as ongoing monitoring, validation and maintenance of these standards on behalf of our clients, being the vehicle owner, the automotive industry and the insurance industry in general. The infrastructure, processes, procedures and market intelligence to manage and maintain this as well as the general market acceptance has been developed and established over many years and have been proven to be very successful. The processes and standards implemented and enforced by VESA have become an industry norm and other than the insurance industry, are widely supported and/or required by the motor industry, financial sectors, government, municipalities and private sector in general. In short, VESA has a proven track record.

Q: Is VESA relevant, considering SAIA's role in accrediting tracking and FM solutions suppliers?
A: Considering the fact that VESA was recently tasked to formulate the National Standard for FM systems, the answer is a definite yes. This also means that SAIA Approved (SAIA) and its members will have to adhere to this standard to be accepted in the industry. VESA also recently issued its one-millionth certificate. This is an indication of the continued role VESA plays in the industry and the acceptance level of the standards and principles it enforces. The VESA certification process is in effect a "stamp of approval" of these standards which is essential in this day and age; it also gives comfort to the end-user and has become an industry accepted norm.

Q: Has your membership base grown over the last 12 months?
A: Yes. Contrary to popular belief, VESA has grown its membership base and new applications are gaining momentum.

Q: How many members do you have?
A: VESA has in excess of 550 members - and growing - as opposed to SAIA's current 11 members listed on their website. This has the effect that VESA remains the single largest organisation of its kind in Africa and has the support base and infrastructure to fulfil its mandate.

Q: What services does VESA offer its members?
A: To answer this, one must firstly look at what VESA's role and objectives are. Considering that VESA was established as a regulatory body to ensure quality products, quality installations and maintenance of this value chain for the general public and consumer at large, VESA is fulfilling this charter and obligation. The question to be asked by the readers of Fleetwatch should be if their interests as consumers are being monitored and managed. That's important to know.
The whole debacle around the insurance industry - VESA vs SAIA Approved - is blown out of proportion and is detracting from the fact that VESA is rendering a vital service to the insurance industry. This entails managing a portion of their risk by ensuring - again - that the quality value chain is enforced and maintained. That through its processes, procedures, infrastructure and support base, it validates the existence of the vehicle, ensures the installation of the correct product, does "post-fitment" quality controls and continued verification of functionality of installed systems. This is the risk management role that VESA plays in the insurance industry at no cost.
So - what service does VESA offer its members? Simple - overall market acceptance of their products and services. We ensure their products and services meet the requirements and industry standards applicable across the board - not just related to the insurance industry.

Q: What does the accreditation process entail?
A: VESA has five different categories relating to vehicle security; each of these categories have different accreditation procedures, all designed to ensure that quality standards are applied, enforced and maintained on behalf of the consumer.

Q: Any other issues that need highlighting?
A: There is no real "dissension in the ranks" as everybody seemed to believe - and that included me. Even through the perceived turmoil, VESA's employees and management continued to render excellent service to the industry. At the core, VESA is still very strong and has the support of a large contingent of related industries - and this includes the insurance industry.

Q: Who now makes up the board?
A: Myself, Allen Harrington (Orbtech Holdings Ltd), and I am supported in my role as chairman by Sean Staley (Siyaduma Group), Tyrone Hanna (JTS Car Sound & Security) - both existing board members who have been re-elected - and the newly appointed directors, Jason Finney (PFK Electronics (Pty) Ltd), Nick Van Zijl (Excess Technologies (Pty) Ltd), Nihal Khan (Nihal's Autofit & Parts Centre CC) and Mellony Morelli-Howes (Audiocoustics).

Editor's Note: It looks to me like the board is really thin on representation from the fleet management and vehicle recovery arena. That has to be a downside.