Motor Accidents – The Need to Act Quickly!
When it comes to minimising costs after an incident involving a third party, timing and recording the right information are everything. So, the sooner a claim is notified the sooner we can control the claim which not only means getting your vehicle back on the road or replaced it also allows us to capture all important third party information. Both of these are key to minimising the impact that the claim will have on your business and your claims experience and therefore your future premium spend!
If one of your drivers hits the rear of a stationary vehicle and moderate damage is caused, as well as the third party driver suffering whiplash, the total cost of the claim can escalate to the following levels:
• Notified day 1 – £5,000
• Notified day 5 – £7,500
• Notified day 15 – £11,500
• Notified day 30 – £20,000
By way of example the accident management provider FMG estimates that failing to capture third-party information can inflate overall incident costs by 965%, turning a £1,000 bill into a painful £10,650, while AXA Insurance has seen claims that should have been £5,000 spiral up to £50,000.
So the key to keeping these costs as low as possible is by making the first notification of Loss (FNOL) as soon as the incident occurs as this means that Credit Hire, potentially fraudulent claims and unnecessary delays can be avoided. We really cannot stress enough that even a loss of a few hours can impact this process so a good fleet risk management procedure is reporting from the scene of the incident as those early hours can affect the entire claims journey.
Some other tips we also recommend are:
- Advise your staff fully on claims procedures so they know the benefits to the company of early reporting.
- Ask your drivers to take photos of the scene of the accident and obtain any witness as well as third party details.
- Provide all drivers with ‘Process Cards’ so that they have all the information they need at hand in the event of an incident.
- Utilise the BHIB Virtual Broker portal to report claims and supply photos, directly from the roadside.
To discuss how BHIB may be able to assist you with managing your motor fleet or general insurances, speak to Mat Kiff, Transport and Logistics Team Leader, on 0330 024 06 06 or email: – firstname.lastname@example.org