Press Release: TOC Asia 2012 Claims Analysis Presentation
Based on an extensive analysis of TT Club's claims, valued in excess of $120 million, Jones revealed that nearly 80% of incidents resulting in a claim were avoidable and the vast majority involved some form of human error. In urging operators to pay heed to the lessons of TT's analysis, Jones said, "We found that the adoption of proven operational procedures and available safety technology could prevent many of the incidents. Relatively small investments in training, and maintenance could bring significant commercial benefits through less disruption to operations, lower insurance premiums and more satisfied customers."
In terms of causal effect the analysis showed that 63% of the total cost (as opposed to the number) of claims were due to operational factors, with maintenance (or lack of it) accounting for a further third; leaving those lacking human intervention, mainly weather related incidents contributing only 4% of the cost.
When it comes to the movement of freight around the world, TT Club's experience concludes that the prevention of many claims lies in efficient and well constructed processes and the analysis presented by Jones reinforced this belief. 43% of the cost of claims resulting from operational factors was as a consequence of errors or faults in an operator's systems or processes.
"While straight forward theft accounted for 29% of operational claims, poor processes and systems were the biggest culprit," Jones demonstrated. "A whole range of substandard practices were in evidence, such as bad stowage and handling; customs fines due to incorrect or late paperwork; poor instruction on management of refrigeration equipment; and wrong release of cargo. All such claims could have been avoided with tighter procedures." (see chart below)
TOC Asia 2012 Claims Analysis Press Release (148 KB)
Source TT Club
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