The Benefits of Early Incident Notification

There are a few simple steps DSPs can take to: 

• reduce vehicle repair costs; 
• cut vehicle downtime; 
• and enhance the overall claims experience. 

All of this means DSPs can focus on delivering parcels. One of the steps is to promptly inform insurers about any adverse events like motor incidents. Early notification of incidents allows you to:

1. Control third party claims 

Notifying your insurer about a serious incident before a third party contacts their own insurer or hire company allows your insurer to take control of the situation. This enables them to manage the hire of an alternative vehicle and handle repairs and storage costs. Your insurer can use pre-agreed weekly rates for hire and repairs through their own repair network. This is typically more cost-effective than having other parties involved in the chain and costs spiral. It is essential to gather the contact details of the third party informing you that an incident occurred.

2. Expedite repairs

The sooner incident notifications are submitted, the quicker repairs can commence, and necessary parts can be ordered. This reduces vehicle downtime and minimises vehicle rental hire periods, resulting in cost savings.

3. Implement mitigation strategies 

Early incident notification enables your insurer to deploy strategies to reduce the overall cost of claims. These strategies may include: 

• providing rehabilitation support; 
• directly handling third-party personal injury claims to save on legal costs; 
• and gathering evidence to support a denial of liability or potential counter fraud investigation. This is in the case of spurious claims made against you by a third party.

4. Reduce costs 

The difference in average cost per claim between a claim notified within 24 hours and one notified 30-plus days after the accident is estimated by insurers to be £21,500 on average. This considers third-party damage, credit hire, and personal injury claims. Timely notification allows your insurer to take swift action, potentially reducing claim costs significantly.

By submitting incident reports promptly, including via incident reporting software, you enable your insurer to take proactive measures, manage costs effectively, and ensure a smooth claims process.

It is important to have robust risk management and incident reporting procedures in place. All relevant parties, including safety teams, should be encourage to report incidents promptly using the designated incident reporting software.

Please get in touch via email ukdsp@marsh.com or call 03309 125 023.