So you’ve taken out insurance cover for your mobile plant and equipment. But when it comes to making claims, have you considered how difficult or slow the process could be?
UAA aims to get customers back on their feet again as quickly as possible. Backed by more than 50 years’ experience in the sector, the company prides itself on innovative insurance solutions in Australia, New Zealand and in various international locations.
The UAA Group Claims Department comprises of staff with extensive expertise in exclusively managing machinery claims.
UAA Group Executive General Manager – Claims and Procurement, George Grasso, said the team’s ethos was ultimately to expedite claims after incidents with machine(s), material damage and legal liabilities.
“We provide confidence to our clients that their future, assets and liabilities are protected by delivering on our promise,” he said.
“Our claims team consists of over 35 claims experts and professionals across Australia and New Zealand who specialise only in mobile machinery and contracts works claims. This includes material damage to machines, hired-in or hired-out machines, business interruption, third party liability matters that may occur whilst a machine is operating as a road registered vehicle, and or other third party broadform legal liabilities.
“We also handle contracts works that include single or annual projects involving construction material damage and public liabilities, and third-party personal injury.”
George said UAA had been managing niche machinery claims for more than 51 years, with the combined experience exceeding more than 250 years of claims relating specifically to mobile machines and contracts works.
“Our intel specifically to this industry, along with our niche repairer network, loss adjustors and supplier expertise across Australia, New Zealand, Singapore, and our global networks of suppliers, endorses our ability to support and help our customers get back on their feet again as quickly as possible,” he said.
“We manage in excess of 10,000 claims per annum totalling close to $200 million worth of claims across our group portfolio.
“All of our claims experts are based here in Australia and some in New Zealand that manage our NZ customers.
“We are heavily focused on local expertise helping local customers, taking a real hands- on personal approach. This includes all industries and hazards that involve all type of machinery and brands, for example managing a claim involving lifting equipment such as a crane; earthmoving such as dozers, excavators, dump trucks; concreting industry such as pumps and agitators, drilling equipment, hiring equipment; and construction projects that include construction material and legal liabilities.”
The assessment process
George said the first thing UAA assessors does in processing any incident is to immerse itself into the client’s shoes.
“We don’t act like faceless insurance claims staff awaiting for claim forms first,” he said. “Once we have learnt of an incident, we immediately work with the client’s insurance brokers and our mutual clients in assisting with recovery of machines in precarious situations, and/or exposure to legal liabilities that the clients may be facing,” he said.
“We immediately appoint loss adjusters/experts specific to the machine/industry affected and that can quickly advise UAA severity of damage, and how to expedite the reverse of damage and or quickly obtain facts to mitigate legal liabilities a client may face.
“In terms of machinery claims, UAA works closely with the loss adjustors in determining if a damaged machine is a repairable proposition or an economic total loss.
“If it is a repair, we work closely with the client and loss adjustor in establishing the best repairer that can expedite the repairs.
“UAA then provides an authority to the repairer and continues to monitor the progress and quality of repairs along with expected and agreed time frames.
“If any change occurs, we ensure communication is at is optimum with the customers. On completion of repairs UAA pays the repairer directly once the customer is also satisfied with the repairs.
“The same goes for our contracts works claims services in working with supplier networks to reinstate the loss incurred.”
George said UAA acted instantaneously in appointing experts once incidents occur.
“We know that these types of claims are not like domestic insurance products, for example when alternate transportation can be arranged,” he said.
“In our industry, claims are treated with the highest priority as it impacts the business and the livelihoods of not just the clients, but also their staff, their families, the contractual agreements with their customers and most importantly their reputation and goodwill.”
Deciding on value
Each claim/machine is assessed on its own merit and its economic damage condition.
If we refer to a damaged machine and it is deemed an economic total loss, a market valuation is conducted by one of UAA’s independent valuation experts and reported to the claims department,” George said.
“If the market value is less than 85 per cent of the sum insured, then UAA pays the market value plus 15 per cent of the market value,” he said. “If the market value is within the 85 per cent percentile, then UAA pays the sum insured. “As an example, if the machine is insured for
$100,000 at the time of a total loss, and the market value is deemed at $90,000, UAA will pay the full $100,000 as the figure is within the 85 per cent percentile.
“But if the market value is deemed at $70,000, UAA will pay $70,000 plus the additional benefit of 15 per cent ($10,500), making the total indemnity paid at $80,500.
“There is an immediate benefit to a customer knowing that they will be paid at least 15 per cent more of the market value. This is an automatic added-free benefit provided.
“Therefore, it is important for customers to annually review their sum-insured amounts on each machine and ensure that the nominated amounts are as accurate as possible to the actual market value.”
George advises that nominated sum- insured amounts play a significant factor in the calculations for premiums.
“You don’t want to overstate greatly as you are technically paying extra premium for no benefit, and again not too low neither, otherwise you will negatively impact the true market value of a machine, let alone impact the value of indemnity that would/could have been provided.”
George said the major claims made in the earthmoving sector are:
• General impact damage: machines hitting property and other objects in general, which includes at-fault and not-at-fault, accidental and reversing incidents
• Theft
• Rollovers
• Fire
• Liability claims relating to damaging underground services
In summary, George said that to obtain the best cover, businesses should speak to their insurance brokers to clearly define their activities and ensure they can assist in providing the appropriate specific protection.
“The more detail you provide your brokers, the more they can ensure to help protect you. Don’t ever take for granted the little things you might think should be common knowledge, as it might not be so common,” he said.
“Ensure your sum insured amounts reflect the value of your assets and the true value of the projects for contracts works. Ensure appropriate risk mitigation strategies are in place, monitored and tested.
“Have a safety first focus, which includes competence training, daily log books, strict maintenance, strict safety and daily checks as per industry and Australian standards, along with OEM guidelines.”