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Locke Purdon, MD of Trucksurance (centre), holds the cheque for R2,135-million which was the total amount of money paid back in dividends to the happy transporters seen here. T’was a fine evening for all.

Zimbali on the KwaZulu Natal north coast is a quiet and beautiful place – not quite suited to a trucking function I would have thought. However, the nature of the function was such that the air of grace and elegance that permeates Zimbali ideally matched the air of dignity displayed by the chosen transporters when they pocketed the dividend cheques handed out to them. I’ve never seen transporters so quiet writes Patrick O’Leary.

This writer has attended many functions over the years but this is the first one where I have seen money handed back to transporters by a supplier of services. That probably explains the air of dignity described above. Seldom have I seen transporters so reserved but I guess that’s because they’re used to paying rather than receiving money from suppliers. You could feel that it was just so lekker for them to get some bucks back.

The company behind all this is Trucksurance Risk Services, a Pietermaritzburg-based company which specialises in truck insurance. Three years ago, a company called Truck Indemnity Company (Pty) Ltd (TIC) was formed as a joint venture vehicle between Road-Freight Risk Services (Pty) Ltd, a company that provides "on road" risk control and management services to truckers, and some selected clients. These selected clients all meet certain minimum standards of control and management.

TIC purchased shares in SA Eagle Risk Finance and has access to its (SAERF's) license to sell insurance and all the benefits which, briefly summarised, are as follows: Self determination (an insurance facility by truckers for truckers); fair premiums; a fair policy; and access to underwriting profit. Along with shareholding comes responsibility and obligations such as meeting all claims and providing for statutory solvency requirements.

After all this was done, Trucksurance pooled the premiums of a select group of independent transporters, gave them 50% ownership in the company and set up its own insurance programme. Now, three years later, a proud Locke Purdon, MD of Trucksurance, tells us that they have current assets of about R8-million which is "way in excess of our original business plan".

And for those transporters who have performed well in the running of their businesses and insurance portfolio, the evening was pay-back time with the first dividends being paid out by Truck Indemnity Company The total dividend payout was in excess of R2-million with some clients receiving a 35% premium refund on their annual premium. Now that’s just got to be a first.

"It is extremely gratifying to be able to give something back to transporters who reduced their claims ratios through implementing our specialised risk management programme," says Purdon.

An accompanying article headed ‘The Tacho Fights On’ details how this risk management programme is managed in the field so we won’t go into it here. Suffice to say that it’s all impressive stuff. And how do the transporters feel?

Share in the profits
Paul Kruger of SJP Kruger Vervoer, who has his fleet of 13 vehicles all insured through Trucksurance, says they decided on Trucksurance "due to the fact that we, as members of the joint venture company, can also share in the profit of the company. The fact that they pay out dividends should your claim history allow, is incredible. It allows us as members to control our claims and thereby look after our own interest."

Adding to this, Kruger says the risk management applied by Trucksurance serves to ensure that the fleet manager is strictly monitored so as to prevent accidents which results in less claims. "The tacho analysis is done on a regular basis and the results get sent to us. This ensures we have the best possible drivers behind the wheel at all times."

Apart from the ability to share in the profits, Kruger also sees the extra services as adding value. "We have never been in a position where we did not receive excellent service. Even the night line number that was given to us, in the case of an accident, is always available and no insured can ask for better service than that."

Equally enthusiastic was Noel Molyneaux of Aries Transport who admitted that he did not know what to expect in terms of his dividend payout but smiled when he said it was a pleasant surprise on the evening.

"I view it as some form of reward, an added benefit for the effort put in. The concept was novel and has proved itself. The selection criteria for members is critical which ultimately results in the success or otherwise of the system. Having an outsider police your internal risk management procedures can only be of benefit to you. Transporters must acknowledge the real risk that is out there and formulate the manner in which such risk is best managed. I believe our system goes a long way to achieving this."

Note he says "our" not "their" which gives a sure indication of the overall success of the scheme. Transporters see it as their own scheme and that has got to lead to all round improvements. Well done Trucksurance on coming up with this innovative programme which stands out as exceptional in an industry sector which for many years has been characterized by dull and rather sluggish players.