Internal Code: 1ICIH
Q1 – Please tell me more about your business?
We are a complete Supply Chain Solutions company. We do vehicle and truck rental as well as goods distribution. With truck rental it is generally a hire of the vehicle to the client for their own use, whilst with distribution, we provide a complete solution by collecting cargo and delivering it to the desired location.
Q2 – In terms of insurance cover, do you provide the appropriate cover for your vehicles and the cargo?
Our business model is adapted to the clients needs. With vehicle rental we generally provide only comprehensive vehicle cover in the event of an accident or theft, our vehicle will be covered by the insurers for the loss. With vehicle rental, as the vehicle is within the control of the client we do not provide Goods in Transit (GIT), and the responsibility of the goods lie with the client. When it comes to goods distribution, as we execute a load on behalf of a client, with our own driver and vehicle, we ensure that our vehicles and cargo is comprehensively covered. In this case however, we require the client to provide us with the value of the goods being transported, to ensure the appropriate level of cover is in place.
Q3- With regards to vehicle rental, how do you ensure that there are no legal repercussions for your organization if your client uses your vehicle to transport illegal goods?
Our contracts with our rental clients states that we are not held liable for any repercussions resulting from the use of our vehicle. We simply hire a truck to the client and the use of the vehicle is in their responsibility. We absolve ourselves of any liability resulting from the client’s actions.
Q4 – Does this apply to their driver’s actions too, or do you request for appropriate licences etc?
With licences, we always request a copy of the client’s driver’s licence for our insurance purposes as well as to ensure that the drivers meet the appropriate qualifications to drive the vehicle. Whilst the client ultimately bears the responsibility of their driver, we must ensure due diligence when handing our assets over.
Q5 – With regards to the Distribution side of the business, obviously the liabilities here are greater, what steps do you take to manage the risks associated with distribution?
In distribution, the model is similar to the rental with a few added features. On distribution, we must provide the driver as well. We have a dedicated driver training and testing facility to ensure that drivers are suitably qualified to drive the required category of vehicles. When it comes to insurance, we have full comprehensive cover for the vehicle, passenger liability and cargo. We stipulate upfront with the client what level of GIT cover they require for their goods and ensure the sufficient cover is in place prior to collection of goods. We also have a 24-hour live tracking control room that monitors the vehicles whereabouts and alerts us to any deviations from route.
Q6 – What other regulatory framework and legality matters do you have to consider running a business like yours within this sector?
In terms of framework, we have the South African Road Freight Association with provides a complete framework for truck operators which is obviously governed by the National Road Traffic Act. As a truck operator we ensure the roadworthiness and relevant licences are in place to avoid any contraventions of the National Road Traffic Act.
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