The Hindu Business Line : Insurers urged to offer integrated services in cargo transportation

EXPERTS at a seminar on risk management in cargo transportation were of the view that the need of the hour for insurers is to provide integrated services and solutions to tackle complex supply chains.

Speaking at the seminar organised by the CII-Kerala here, Mr C.P. Udayachandran, Deputy Manager, United India Insurance Company Ltd, laid emphasis on the mantra of transportation which included the 7R's of transportation - right product in the right quantity and the right condition at the right place, at the right time, for the right customer and at the right cost.

He pointed out to the life span of an organisation through production-protection space. He also spoke of the generic risks in business of transportation which included hazards of material carried, government regulations, training needs, routing and travel time issues, hazards in storage facilities, response capability issues, periodic maintenance checks and repairs, driver specific issues and human factors.

Mr K.V. Rao, Head of Royal Sundaram Allianz Insurance, Kerala, focussed on the three-pronged approach to art of risk management that included avoiding, reducing and transferring risk.

Avoiding risk includes selecting the right kind of packing, right kind of carriers and right kind of agents. Reducing risk involves standardisation, supervised loading/unloading and speedy clearance of goods and transferring risk included obtaining a policy, which is adequate in value and appropriately drafted, he said.

Mr C.B. Murali, Chief Underwriting Officer, HDFC Chubbs, laid emphasis on the growing market size of the non-insurance market.

He also pointed out to the recent trends affecting the transport industry which included the dominance of the emerging markets such as China and India, increased consumption from increased purchasing power, increased globalisation, increase in volatility and challenges for container shipping resulting from complex supply chains.

The need of the hour for insurers is to provide integrated services and solutions, he added.

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Insurers urged to offer integrated services in cargo transportation