Recently, one of our customers asked a very good question about insurance claims on trailers that are loaded in excess of the manufacturer’s specification. He noted the following exclusion in his commercial vehicle policy:
Overloaded vehicles
This policy does not insure loss or liability if the vehicle is loaded or operated contrary to the manufacturer’s recommended specifications or loaded or operated contrary to regulations or statute. This exclusion does not apply to any claim for loss arising from theft.
He further observed that:
NZ law requires that a vehicle and its trailer must be able to stop in seven metres at 30km/hr on a dry road (along with other regulations for different weights). However, every vehicle manufacturer states the maximum un-braked load is 750kg or less depending on the vehicle. We will at times tow our work trailer with more than 750kg. But less than the trailer manufacturer’s load limit, which is 1,100kg. I have tried on multiple occasions with a heavy load and can easily stop within the 7m at 30km/hr. As per the NZ road rules. So, if the vehicle manufacturer is specifying 750kg, the trailer can tow 1,100kg and we can stop within the Road Rules, what happens in the event of an accident while towing when we are outside the tow vehicles stated capability?
Firstly, here is a link to NZTA’s guide to safe loading and towing: https://www.nzta.govt.nz/resources/glovebox-guide-safe-loading-towing/guide-safe-loading-towing/
We raised this with one insurer and they confirmed that loads must comply with the terms of the policy. Failing to do so may result in a claim being declined. In practice, this means that if your vehicle’s manufacturer has an un-braked maximum load limit of 750kg and you are towing an un-braked trailer with a 1,000kg load and you have an accident, there is a risk that your claim will be declined. This is despite the load being below the trailer manufacturer’s maximum capacity limit and despite the vehicle being able to stop within the 7m at 30km/hr legal requirement.
When we asked if insurers would consider amending their policy terms to account for this they were not keen to do so, as in their view, while the regulations are required to go across all types of vehicles the manufacturers’ limits are there for safety reasons and are specific to the particular vehicle.
We would hope that if weight of the load didn’t contribute to the accident (in particular if it was able to stop within 7m at 30km/hr) the insurer would not use this as grounds to decline the claim. Generally, this is the accepted approach and we’re not aware of a claim having been declined on this basis. But the fact remains that there is the potential for a breach of the policy conditions.
Lastly, NZTA states that two people a year are killed and five are seriously injured in crashes where the trailer was recorded as being the main contributing factor. We recommend regularly checking your trailers and reviewing load-carrying policies with staff. The link above is a great place to start.