Businesses that transport abnormal loads or hazardous goods on South African public roads need to ensure that they have the relevant insurance in place to account for all the potential risks associated with this. Indwe Risk Services looks at the complexities in this regard.
The reality is that certain loads cannot be transported without exceeding the limitations in terms of the dimensions or mass as prescribed in the Regulations of the National Road Traffic Act. The legal definition of an abnormal load is when such a vehicle or load cannot be dismantled without disproportionate effort, expense or risk of damage, into units that can travel or be transported legally.
“A special permit can, however, be issued to transport these loads if they are in the economic or social interests of the country. This is only valid for a limited period and is normally issued by the Provincial Road Authorities. If necessary, input can further be obtained from local and metropolitan authorities,” says Steve Cornelius, Head: Special Risk Automotive and Transportation at Indwe.
These permits typically require a combination of the following:
- Abnormal warning signage;
- amber flashing lights;
- marker lamps and reflectors; and
- escort vehicles.
Putting insurance in place
An integral part of the process of transporting these loads entails having insurance in place to cover the damage to both private and public property during its transportation. However, beyond that, there are other considerations to bear in mind:
- Damage to the goods being transported;
- damage to the vehicle transporting the goods;
- damage to third party property;
- injury or death of third parties;
- environmental damage; and
- professional liability of independent, professional engineers involved in the route clearance as well as conveyance specifications and routing.
The latter point is quite important as these professionals are responsible for finding the most suitable route, including factoring in bridges and other road issues, to avoid damage or keep it to a minimum.
“How the insurance solution is structured will depend on the requirements of the permit, as well as the contractual and statutory arrangements that apply between the transporter, consignor and consignee.”
While these loads are typically associated with the mining and construction industries, there are also others who might require such a service. For example, last year a Boeing 737 was transported from Boksburg to Fourways for the opening of an indoor entertainment area for children. The havoc on Johannesburg’s busy highways and all the alternative routes, will not soon be forgotten.
“There are specialised insurance products for exactly these instances but they are only available from insurers with the capacity and expertise to provide the correct cover. Risk can be mitigated by ensuring that the correct vehicles are used, that these vehicles are properly maintained, and that the drivers have the required special driving licences.”
A hazardous drive
Hazardous and dangerous goods are listed in Standard Specifications by the SABS 0228 and are governed under the South African Dangerous Goods Act. This Act addresses issues such as professional driving permits, transport emergency cards and dangerous goods declarations.
Dangerous goods are split into several broad classifications:
- Class 1 – Explosives
- Class 2 – Gases which are compressed, liquefied, or dissolved under pressure
- Class 3 – Flammable liquids
- Class 4 – Flammable solids
- Class 5 – Oxidising agents and organic peroxides
- Class 6 – Toxic and infectious substances
- Class 7 – Radioactive substances
- Class 8 – Corrosive substances that can dissolve organic tissue or severely corrode certain metals
- Class 9 – Miscellaneous hazardous substances that do not fall into other categories, such as asbestos
“The major challenges related to transporting these goods revolve around the risk of spillage, resulting contamination, loss or damage to the conveyance carrying the goods, loss of the goods being conveyed, damage to third party property and the death or injury to third parties.”
Liability in case of a spillage
Given the potential cost of spillage, recovery and rehabilitation, local authorities are becoming stricter in their enforcement of the process and holding the transporter and owner accountable for consequential damage resulting from spillage.
“The transporter involved in either abnormal loads or hazardous goods is exposed to potentially catastrophic losses and should look to protect himself from financial ruin by identifying and insuring these incidents. This is where qualified brokers and specialist insurers are critical. These have teams of specialists to work with all relevant parties to mitigate any risks and ensure the process is as smooth as possible.”
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