Loss Controll - Neil Kuprowski Flashcards
Manitoba & saskatchewan insurance
In mb & sk, it is mandated by the law that every vehicle carries all 3 types of insurance.
All our units are insured for $50,000 worth of collision and comprehensive insurance and $200,000 worth of liability insurance.
These amounts are the provincial minimums that are available.
Ontario insurance.
In ontario the only kind of insurance we have to carry by law is liability insurance. We DO NOT carry any collision or comprehensive insurance on our units in ontario.
The provincial minimum for liability is $200,000 and that is all we carry on our vehicles.
Insurance
There is 3 different types of insurance that we can carry on our cars…
1) collision - covers physical damage to our vehicle when it is involved in a collision.
2) comprehensive - covers things such as theft, vandalism, acts of god, wildlife.
3) liability - covers damage/injury to the other partys property or person.
Uninsured losses
There are 4 different types of uninsured losses…….
1) undocumented damages.
2) employee accidents
3) on lot damage - this occurs when the vehicle is not on rent and sitting in our lot, shop or dealership. They include theft, vandalism, hit and run or acts of nature such as hail.
4) conversions - this is when customers refuse to return our car. This can be avoided by proper underwriting, ticket completion and keeping up to date on call backs.
Fraudulent rentals
These occur when a person uses stolen or fake id and credit cards to get the rental vehicle. Often it is difficult for an employee to know the id is fraudulent until well after the customer has left. In the event you feel you may have a fraudulent rental, immediately contact neil kuprowski. NEVER report the car stolen unless instructed to do so by neil or the GM.
Thefts. There are 3 different possible theft scenarios and the procedures to follow.
A) theft off our lot.
* contact neil to report the theft. * once ok'd by neil report the theft to the police (in mb and sk also report to mpi and sgi) * do the OX and put the police and claim numbers into the report.
B) theft from a drop or service vendor
* contact neil and report the theft. * have the owner/manager of the location report the theft to the police. * in mb/sk report to mpi/sgi * do the OX and include the police and claim numbers.
C) Theft from a renter while in their possession
* The renter must report the theft to the police. This includes if the renter says they dropped the car off over night on your lot or at a shop. If they were the last person in possession, they need to report the theft. If the renter refuses to report, then call neil. * in mb/sk also report to mpi/sgi. This can be done by an employee at the branch. * Have the renter come to the branch and do a DX reprt. Make sure that the police report number and mpi/shi claim numbers are included.
3) Conversions there are 3 things that have to happen before we can consider a car to be converted.
A) the most important is that the car has to be overdue. A car can never be considered to be converted unless the date that the customer had to return the car has past.
B) You cant get ahold of your customer at home or work. In all cases we will try to find possible new numbers and contacts to get a hold of the customer. We will also send correspondence via the mail to make contact.
C) You cant find your car. We will go by the customers work and home over a few days and different hours of the day or night to try to find our car.
When you feel you have a conversion, you have 2 days from the over due date to contact your area manager and loss control department.
NEVER report the car stolen, only ian dale or neil kuprowski can report vehicles stolen.
When a stolen vehicle is recovered it is very important that no one drives it and no one rents it. We need to confirm that the vehicle is no longer listed as stolen before it can be removed.
Loss control. - branch accident reports DX/OX - propper completion.
List 10 items that must be included in the report.
1) date of loss
2) accident description
The description should be short and concise.
3) damages
It is important to note which part of the car was damaged and the size of the damages
4) drivers signature.
This is important as this is how we can prove our claim is the drivers statement, having the customers signature on the report makes it easier to collect money from insurance companies and corporate accounts.
5) coverage
Note at the beginning of the report, what sort of coverages the customer took
6) police information.
Whenever the customer is reporting something illigal (hit and run, vandalism, theft etc…) they should always report the incident to the police. The insurance companies will need to know the police report number to be able to proceed the paying the claim, so if you put it in the report it will speed up the process of payment.
7) claimant
This is where the details about the other vehicles belongs. It is important the list as much info on the other parties as possible.
8) drivers licence
We should always include this information, if applicable with a dx report
9) licence number
We should always include this info on the dx report.
10) rental contract
Always include a copy of the rental contract on the dx report. The contract provides valuable information about the rental and is often required by the insurance company in order to pay the claim.
Reserves and how they work.
There are 4 different types of claim situations.
1) customer had CDW and is at fault
2) customer had CDW and is not at fault
3) customer did not have CDW and is at fault
4) customer did not have CDW and is not at fault
What are reserves
You already know that dx damages are charged to your branch over the next 12 months. Every dx will either have a negative (loss) or positive (gain) outcome towards your reserves. Your reserve is simply the accumulation of these losses and gains.
There are 4 things that make up your reserves
1) CT income. Every time someone owes us for damages, we call it CT income. Whether the money is coming from the customer, a company or an insurance agency does not matter. It doesn’t even matter if we have collected the money. If we are expecting someone to pay us for damages, we call is CT income.
2) DAMAGES PAYABLE - whenever we pay to have damages fixed, the money is charged to damages payable. Even if someone is payong us back (CT income), we still have to pay a shop to fix the damages. All payments that we make,(or expect to make) for damages get added here.
3) BAD DEBT - this occurs when we have to create a CT and did not collect the money before the end of the 3rd month. Just like a regular AR.
4) LOSS OF USE - affectionetly referred to as LOU. When a car is being repaired and can not be rented, at times we can recover lost revenues from an insurance company or our customers. We still create a CT to account for the money, but we track it seperate from CT income.
So you have 4 different DX situations and 4 parts to your reserves.
Dx situations again
1)customer had cdw and is at fault - loss
2) customer had cdw and is not at fault - gain
3) customer did not have cdw and is at fault -gain
4 customer did not have cdw and is not at fault - gain
As you can see the only time you should lose is when the customer has cdw and is at fault for the damages. Unfortunately this is the case about 69% of the time.
How the reserves are calculated.
The
LOss/gain on each individual dx that is acted on in that month gets added together to give you a monthly reserve loss/gain.
This number gets added to your 12 month rolling total and the loss/gain from the same month of the previous year falls off. Generally, if the loss you had this year is less than the loss you had the same month last year, your reserves will go down, assuming no major drops in your fleet size)
What you need to do to keep your reserves as low as possible.
1) proper underwriting - retail and corporate customers will make up about 70-80% of your DX’s. When taking these deals you must be aware of the risks involved and make sure the customer is aware of what they are responsible for should damages occur.
2) Check-ins - Do a complete thorough check of the condition to set the standard and expectation with the customer. Check it the same way when it comes back and you minimize your chances of missing things.
3) DX Reports - Put as much detail as possible and fill in all appropriate areas. This way loss control can make the best decisions for your branch.
4) Collect money for the damages. The moment you let someone walk out of the door without leaving you money for damages, your chances of collecting this money drops drastically.
5) Estimate/Repair quickly - To fully collect for damages, we need to be able to justify the charges. If estimates/repairs do not get done right away, customers will question whether we are charging them for things they did not do. A quick estimate will always eliminate the chance of this happening. It is also good customer service to get things cleared up right away.
6) Communicate with Loss Control - we are here to help you and work the claims to your best advantage. We can not do that if you don’t follow up on our requests or keep us up to date on the situation. You can lose hundreds of dollars on one claim by acting without checking.
Manitoba scale of rebates and surcharges
If our loss ratio is between 70%-79% there is no rebate or surcharge. The highest rebate we can receive is 25% and the highest surcharge we can pay is 50%.
The loss ratio is determined by comparing the total dollars that MPI pays out in the handling of our claims, and the total insurance premiums we map MPI in a year.
Example
If we pay $1000,000 for insurance and MPI pays out $450,000 to handle our claims, then our loss ratio would be as follows..
$1,000,000 total insurance paid
In this example, since our loss ratio is 45% we would qualify to receive 25% of our insurance premiums back as a rebate, which is $250,000.
The MPI payout is the total of 3 things….
A) What MPI pays (above our $500 deductible) to fix the damages to our units when our driver is responsible for the accident. If our driver is found 100% not-at-fault, our loss ratio is not charged. Our driver can be our customer or an employee.
B) What MPI pays to fix the damage to the other partys property when our driver is at fault in the accident.
C) What MPI pays out in injury or accident benefits to the other party when our driver is at fault for the accident.
For example if our customer rear ends someone and there is $2000 in damage to our car, $2000 in damage to the other persons car,and MPI pays out $1000 in injury benefits, then our loss ratio would get hit with a loss of $4500, the total less our $500 deductible (we pay the shop the $500 directly)
