MOTOR FLEET INSURANCE

Cover for the vehicles that move your business.

From business vehicles and mixed fleets to heavy commercial trucks, trailers and specialised vehicles, we help structure cover around how your fleet is used and managed.
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MOTOR FLEET INSURANCE THAT MOVES WITH YOUR OPERATION

Motor fleet insurance should do more than place several vehicles under one policy. It should reflect how the vehicles are used, who drives them, where they travel and the controls used to manage the fleet.

Inscorp assists businesses with company cars, bakkies, delivery vehicles, vans, mixed fleets, heavy commercial trucks, trailers and specialised vehicles. We consider the fleet as part of the broader business operation so that the cover, excesses and funding structure remain practical at claim stage.

WHO WE ASSIST

  • Businesses operating company cars, bakkies or delivery vehicles
  • Manufacturers, wholesalers and distributors with delivery fleets
  • Courier and service businesses
  • Transport and logistics operators
  • Heavy commercial fleet owners
  • Businesses operating trucks, trailers or specialised vehicles
  • Contractors with mixed or purpose-built fleets

KEY FEATURES OF MOTOR FLEET INSURANCE

CONVENTIONAL OR COMPREHENSIVE FLEET INSURANCE

Under a conventional fleet policy, vehicles are grouped under one insurance arrangement and covered according to the agreed policy terms.

Comprehensive fleet insurance generally provides cover for accidental damage, theft and hijacking, fire, certain weather-related events and liability for damage caused to third-party property. Additional options may include towing and recovery, vehicle hire, loss of use, credit shortfall and cover for accessories or vehicle modifications.

The vehicle schedule, insured values, use of the vehicles and applicable excesses must be kept accurate and up to date.

AGGREGATE DEDUCTIBLE FUND

An aggregate deductible arrangement allows the business to retain an agreed portion of its fleet losses during the policy period.

Smaller covered claims are funded from the agreed deductible amount until the specified aggregate limit is reached. The insurer then responds in accordance with the agreed policy structure.

This option may be suitable for larger fleets with reliable claims information, effective risk controls and sufficient cash flow to fund the retained portion of losses. It should be assessed against the fleet’s claims frequency and the business’s financial capacity.

STOP-LOSS PROTECTION

Stop-loss protection may be used with an aggregate deductible arrangement to place an agreed limit on the business’s retained exposure.

Once covered fleet losses reach the specified stop-loss level, the insurer responds according to the agreed terms and policy limits. This provides protection against an unexpectedly poor claims year while still allowing the business to participate in the management of more predictable fleet losses.

DEPOSIT PREMIUM OR BURNING-COST BASIS

Under a deposit-premium or burning-cost arrangement, an initial premium is paid and the fleet’s claims performance is monitored against an agreed formula, loss ratio or threshold.

The burning cost reflects the cost of claims generated by the fleet. Depending on the arrangement and claims performance, an additional premium may become payable, up to the agreed full premium.

This type of structure is generally considered for larger, well-managed fleets with credible claims data. The calculation, claims threshold and maximum premium must be clearly understood before the arrangement is accepted.

WHAT SHAPES YOUR MOTOR FLEET INSURANCE?

When reviewing a motor fleet, we consider:

  • The type, age and value of each vehicle and trailer
  • Whether vehicles are used for the business’s own purposes or for transporting goods for reward
  • Local, long-distance and cross-border routes
  • Driver licences, Professional Driving Permits and driver-management controls
  • Overnight parking, security and tracking requirements
  • Vehicle maintenance, inspections and tyre-management procedures
  • Claims frequency, claims severity and accident-management processes
  • Towing, recovery and roadside-assistance requirements
  • Finance agreements, accessories and vehicle modifications
  • The business’s ability to fund excesses or retained losses

COMMON MOTOR FLEET INSURANCE GAPS

  • Vehicles, trailers or modifications missing from the policy schedule
  • Insured values that no longer reflect replacement or market values
  • Incorrect descriptions of vehicle use or operating territory
  • Tracking and security conditions that are not being followed
  • Driver or licence requirements that are not properly monitored
  • Towing and recovery limits that are inadequate for heavy commercial vehicles
  • Cross-border use that has not been disclosed or authorised
  • Loss-of-use cover being assumed rather than specifically included
  • Changes in routes, loads or fleet composition not disclosed to the insurer
  • Excess structures that place unexpected pressure on business cash flow

MOTOR FLEET COVER DOES NOT AUTOMATICALLY COVER THE LOAD

Insurance for the vehicle should not be confused with insurance for the goods being transported.

Businesses carrying goods must also consider Goods in Transit cover, Carrier’s Liability and any liability accepted under transport contracts. These covers should work together, particularly where loads are transported for customers or subcontractors are used.