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Fleets warned to expect insurance premium rises following payout rules change
Date: 27 June 2017 | Author: Daniel Puddicombe
Telematics company Teletrac Navman has warned fleets their insurance premiums could rise significantly following a change in the way injury compensation payments are calculated.
Earlier this year, the government changed the discount rate at which future losses are taken into account from 2.5% to -0.75%, meaning initial payments from insurance companies are likely to be higher, which in turn is likely to push up the price of premiums.
To limit the impact of the changes, the company recommends that fleets should install telematics units in order to demonstrate how risk management processes have been improved, install cameras to show when drivers are not at fault and reconsider whether the company's vehicles are fit for purpose.
In addition, Teletrac advises fleet managers to implement regular review meetings with drivers to help reduce instances of speeding and excessive braking.
"Insurance premiums remain one of the largest overheads for fleets; however, many operators will not become aware of rising premiums until they come to renew their policy," said Peter Millichap, UK marketing director at Teletrac Navman. "Our campaign highlights how businesses can take immediate steps to minimise costs, as well as improve the overall safety and performance of their fleet."
He added: "Telematics is a critical tool in analysing and improving risk management; however, fleets must actively use the software in order to reduce premiums."
