The cost of an uninsured accident

What happened

A fleet operator with eight tippers stopped work when his main contract ended. He let the insurance lapse on the two newest tippers to save cash. A month later both were damaged in a yard fire. With no cover, the loss fell on him, and through him on us: ₹54 L outstanding on two vehicles worth nothing.

What we learned

• A stopped fleet is not a safe fleet. Parked vehicles are still exposed to fire, theft and flood.
• Operators under strain cut insurance first, because it doesn't stop the vehicle running.
• We knew: the insurer's lapse notice had arrived three weeks earlier. Nobody acted on it because the loans were current.

What changed

The EWS raises C1 (12 points) when insurance has lapsed or will lapse within 15 days, regardless of DPD. Collections chases the renewal before anything else on the case (KB-016). For fleets in a stopped district, chase insurance on every vehicle, not only the flagged ones.