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Claims Management: Incident Prevention

reading time: 10 minutes


Sinister may sound good in some regions of Brazil, but in general it is a term that denotes unexpected events, generally with unfavorable consequences.


Accidents, collisions, theft and cargo theft are among the main types of vehicle accidents. And Brazil is one of the leaders in incidents of this type, with more than 18 thousand cases of cargo theft last year alone, according to data from the National Association of Cargo Transport and Logistics (NTC).


Fortunately, there are ways to deal with this situation, and one of the main ones is through claims management.


This practice consists of processes that help companies reduce the number of accidents and increase security against theft and cargo theft. Generally, such processes are implemented both by the company and in partnership with insurance companies, which are also interested in preventing incidents.


What is a claim?

could mean:


Disaster, accident or any significant material damage to insured property are not desirable events.


As noted, claims are frequent in logistics, which highlights the importance of focusing significant efforts on claims management in this area.


Claims management:

It is the set of activities designed to carry out one of the following two tasks:


  1. Reduce the likelihood of an accident occurring.

  2. Provide support to the company in the event of an accident.

These activities aim to understand and manage the risks associated with potential problems. In addition to avoiding unnecessary expenses, claims management also helps managers understand the company's organizational structure.


Therefore, it is common for claims management to result in changes to processes within the company.





How does claims management operate?

As with other management activities, a crucial first step is to understand the company's operations globally, identifying all associated risks. For example, if there are dangerous machines, it is essential to assess the potential for accidents for employees. Likewise, it is important to check that there are adequate security measures in place to prevent night-time break-ins and robberies.


After identifying the risks, it is necessary to implement processes to mitigate them, that is, adopt measures to reduce possible incidents. For example, providing instructions to employees on the safe use of dangerous machines and investing in security systems or hiring surveillance services to prevent nighttime thefts.


Additionally, it is essential to establish protocols to deal with incidents should they occur, such as accidents involving employees. This may include first aid measures, ensuring safety and resumption of operations, and providing compensation when necessary.


While these activities can be performed in-house, many companies in the insurance industry also offer claims management services. It is important to note that certain conditions may affect eligibility for insurance reimbursement.


For example, if a driver's driver 's license expired at the time of the accident, the insurance company may refuse to pay the reimbursement. Therefore, it is crucial to keep the company's documents up to date to avoid complications in claims management.


 

Why is it advantageous to invest in claims management?

According to experts, if all companies implemented claims management in different sectors, around a third of problems could be prevented.

In addition to avoiding unforeseen events and improving the effectiveness of operations, this reduction in problems would result in two additional benefits.


For insurers, this would result in significant savings as they would not have to deal with as many compensations and reimbursements.


These savings, in turn, would reduce the risk associated with insurance, making plans more affordable for all companies.


Why is it crucial for carriers and fleet companies?


The logistics and transportation sector plays a vital role in business operations. However, it is subject to a number of challenges, including traffic accidents, theft, driver issues and adverse weather conditions.


Therefore, claims management is essential for the success of operations in this sector. Using a routing tool can help avoid dangerous routes, reducing the risk of robberies and accidents due to problems on the road.


Furthermore, routing also optimizes time and reduces fuel costs. Another valuable feature is vehicle telemetry, which provides real-time updates on the vehicle's status, preventing accidents through preventive maintenance.


In cases of theft or theft, these systems can provide crucial information to recover cargo or alert authorities to the incident in a timely manner.






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