27 INSURANCE 2011 ABLA YEARBOOK • RISK RETENTION (SELF-INSURANCE): In this case, the vehicle rental company may choose to assume occasional losses from the use of the vehicle, regarding property, personal and moral damages, caused to third parties, and assistance to the user, in case of accidents, electrical and mechanical damage. In any case, for the perfect retention or self-insurance management, the decision must be followed up with an accident and loss report, and the building up of a fund to deal with events that may result in immediate replacement and an indemnity payment to third parties. • RISK TRANSFERENCE: by choosing to transfer risks, by means of insurance that covers some or all of the risks to which a vehicle is exposed, it is extremely important to have the assistance of an insurance broker. This broker should know the vehicle rental and fleet management business, so that it can provide the best insurance alternative, be it in preparing policies, coverage, or the amount to be insured. It will also help in identifying the companies which can best serve the segment. • RISK REDUCTION: Some measures minimize the occurrence of accidents, and thus reduce suffering and costs for the parties concerned. This item deserves special attention, regardless of whether the vehicle rental company retains or transfers the risk, as risk reduction should be a constant in people’s and businesses’ lives. There are alternatives that company fleet managers may opt for in handling risk: whose profile and care are unknown, management should consider every possibility open to them. It should also be considered that the vehicle, from purchase to sale, represents permanent exposure to the various risks that are inherent to it, and that necessary protection has an important weight on the vehicle rental company costs. So the decision must take into consideration every alternative, and it is important to note that even if it chooses to take out insurance, the vehicle rental company should not discard measures to reduce risks, considering that some events are not usually covered. Vehicle rental companies must be aware of the potential losses posed to each company’s fleet. Solutions should focus on deployment of innovative management techniques By Ildebrando T. S. Gozzo, Technology Director at ANAUTO/SP
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