With Innovative Pricing, SulAmerica Introduces a New Concept in Truck Insurance
PR Newswire, Oct 22, 2009
Mileage-Only Truck Insurance allows Policyholders to pay Monthly Premiums Based on Regions, Periods and Mileage
SAO PAULO, Oct. 22 /PRNewswire-FirstCall/ — Always quick off the mark, the SulAmerica insurance company launches its innovative Caminhao Km Rodado scheme that allows its policyholders to pay only for the distances travelled by their trucks. With a pioneering pricing model that is the first of its kind in Brazil, this product is designed to expand the share auto insurance in new jersey held by this insurer of a somewhat neglected branch of the insurance market.
According to the National Transit Department (DENATRAN), there are some two million cargo vehicles in Brazil. However, only 15% of them are insured. “This product was created in order to attract truckers who do not normally take out insurance on their vehicles. Many of them work with seasonal deliveries, and a product of this type responds to the needs of this public,” explains Property & Casualty Vice President Carlos Alberto Trindade Filho.
The Mileage-Only truck insurance policy works like this: the policyholder uses the vehicle during the month and pays a premium based on mileages, times of day and regions where the vehicle is driven, which is settled only at the end of this period. If the vehicle is driven less during the subsequent month, the amount payable will be lower, respecting only the established minimum fee. Although the contract is annual, the premium is charged on a monthly basis against a statement providing information on precisely when, where and how much the truck has been driven.
This product was initially developed for cargo vehicles and tow trucks. Using satellites to monitor the routes of these vehicles on a 24/7 basis through state-of-the-art technology, this insurance was tested through a pilot project that uncovered great business opportunities in this segment, with rising interest among the public
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