Page 74 - Commercial - Underwriting Mandates & Guidelines Binder

3.1
3.2
Area
3.1.1 Consider the area into which goods are being transported. Do you have knowledge of the area? Do you understand the conditions, roads, crime, policing, etc.?
3.1.2 The type of goods (food transported under refrigerated conditions, distance to assistance, etc.) may impact on acceptance.
3.1.3 Be mindful of accepting risks in remote areas.
Premium calculation
3.2.1 3.2.2
3.2.3
It is unusual for any business not to know the amount representative of the annual carry. However, if the annual carry is not available, make sure the higher rate is applied to the load limit and that premium is charged per conveying vehicle.
If rating is based on load limit, ensure that you obtain the following:
3.2.2.1 number of vehicles in fleet;
3.2.2.2 highest value any one load;
3.2.2.3 number of loads per day.
More than one load limit or type of load can be accommodated; the Insured may have different load values and type of goods.
Goods in Transit
3.
2.5 Imports
2.5.1 Property imported and hauled to or from any harbor or main airport within our country could possibly be insured under a marine or stock through-put policy.
2.5.2 The imported property may be in seriously bad condition on arrival and if we cover the haulage to another location chances are that we will be paying for damaged property unnecessarily. Recovery will be expensive if not almost impossible.
2.5.3 Under no circumstances should imported property be insured on an All Risks basis unless the owner opens up the packaging and checks for damage.
2.5.4 The following should be established before cover is finalised:
• Goods professionally packed?
• How are the goods secured?
• Are the goods packed on pallets?
• Height (under bridge height)?
• Other protection measures?
• Goods carried by the owner or a contractor?
• Is the contractor experienced in transporting these types of goods?
2.6 Security
If the conveying vehicle(s) is not insured under this policy, it is important to check the security of the carrying vehicle and insist on a tracking device in the carrying vehicle if necessary.
2.7 Valuation
2.7.1 The policy refers to property transported related to the business.
2.7.2 Do not offer to insure the property of any third party as the Insured then becomes a contractor.
2.7.3 The load should not be based on the invoice amount as this amount includes profit and other trade expenses.
2.7.4 To compensate for certain expenses the actual manufacturing price may be increased by 10% (ten percent) to 15% (fifteen percent) and is what is known as "cost plus 10%/15% (ten percent/fifteen percent)", the policy must be endorsed to this effect if required.
UNDERWRITING THE RISK
72
Commercial Underwriting Mandates and Guidelines – Binder – Version 4 2022