Dec 06/Jan 07

AR Lunn Transport & Warehousing, a leading UK-based transport and warehousing specialist, says it has pegged its vehicle insurance premiums for three years by fitting a telematics system, as well as improving operational control and enhancing fleet performance. The equipment has been fitted on over a hundred Lunn vehicles.

The company has chosen what is now known as the Telematics Enabled Fleet Insurance system from Cybit, developed since Cybit helped Norwich Union with its Fleet Telematics insurance scheme.

In this case the fleet insurance broker is The Insurance Partnership. According to Lee Sutton, a senior account executive at the company: "TEFI helps enhance our clients' risk management strategies and operational efficiencies, and also gives us a record of a vehicle's activity." This helps users monitor trends, he says. "The benefit for the more responsible fleet is profit sharing from the insurer and ongoing economies on premium costs."

The system has allowed Lunn to fix fleet insurance premiums for the next three years. The company will also be in line for a profit share of up to 16 per cent per annum, subject to meeting agreed claims experience targets.

Not that this was the only reason for the implementation. Lunn says the underlying Fleetstar-Online system has also helped the company reduce operating costs through improved route planning, congestion avoidance and reduced idle times.