REDUCING THE EFFECT OF DOWNTIME – The Value of VAPS
A transport operator may need to turnover a minimum of R160 000 per month on a single heavy commercial vehicle rig in order to pay basic fixed expenses like driver salaries, vehicle repayments, telematics, insurance as well as other variable running costs like vehicle maintenance and fuel. If a truck and trailer with a combined value of R1 000 000 is involved in a collision, the basic excesses and loss of turnover for a 4 to 6 week repair period could cost anywhere between R200 000 to R350 000 – not many businesses could absorb this sort of financial loss.
The Value-Added Product Return:
An excess reducer (vehicle, trailer and goods in transit) coupled with a loss of use to cover (fixed expenses: driver salary, vehicle installment, insurance) would reduce this amount by up to 80% in return for a predictable and more affordable insurance premium. Valued Added products are not just limited to transporters and the vehicle section of insurance products, excess reducer options can also be bought on other sections of the personal and commercial lines insurance products.
ALWAYS make sure that you are fully aware of your maximum excess payable, never under estimate the time and costs to recover from a loss.
Regards
JK