MS&AD Group introduces Automobile Insurance for Relay Transportation

Mitsui Sumitomo Aioi Fire & Marine Insurance and Aioi Nissay Dowa General Insurance of the MS&AD Insurance Group have started selling the “Special Clause for Driving Borrowed Commercial Vehicles” as dedicated automobile insurance for relay transportation from May 1, in order to resolve the “2024 Issue” faced by the transportation industry.

The two companies will contribute to solving various social issues by developing products and services that support resolving various challenges faced by transportation operators and other companies.

Background

The transportation industry is focusing on the “2024 Issue” arising from the revision of the Labor Standards Act in April 2024. Securing a stable transportation capacity has become an important issue for transportation operators to address, due to labor shortages caused by population decline, as well as the need to respond to regulations on overtime work limits (960 hours per year) for drivers.

The Ministry of Land, Infrastructure, Transport and Tourism recommends implementing relay transportation as a measure to curb long working hours while addressing the driver shortage. Relay transportation is a method of sharing long-distance operations among multiple drivers, which is expected to reduce the workload on drivers, enabling them to work on a day-trip basis.

There are three types of relay transportation: driver changeover, tractor-trailer swap, and cargo transfer. In the driver changeover method, drivers switch vehicles at relay points, borrowing vehicles from other transportation operators, which poses the issue of accident coverage.

Overview

The “Special Clause for Driving Borrowed Commercial Vehicles” provides coverage as if the vehicle borrowed from another transportation operator in the driver changeover method is the insured company’s own vehicle.

• Target Contract: Automobile insurance fleet contract (contracts with 10 or more owned and used vehicles)
• Set Conditions:
  1) The company implements relay transportation
  2) The contract includes the blanket vehicle clause and the driving by employee clause

Coverage Examples:

• If a borrowed vehicle is damaged during relay transportation, repair costs are covered by the insured company’s (driver’s company) vehicle insurance policy under this clause.
• If a personal injury accident occurs during relay transportation, the insured company’s (driver’s company) personal liability insurance policy provides coverage under this clause.

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