TELEMATICS KNOW YOUR CARGO. NEWS IRDA SOPS for GI Industry. PHOTO(S) OF THE MONTH Damage to Containers. BACK TO BASICS Question of the month

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1 Marine Newslink Volume 4 Issue 5 NEWS IRDA SOPS for GI Industry PHOTO(S) OF THE MONTH Damage to Containers BACK TO BASICS Question of the month KNOW YOUR CARGO TELEMATICS

2 EDITOR S NOTE Technology has brought everything on our palm now. A year back, we would call upon radio taxis but today we can, not only book them without uttering a word but can also track the taxi to the precision of 10 meters in metros. The buzzword for such technology is INTERNET OF THINGS (IOT) and Telematics is what makes that taxi appear in front of you as it shows on your phone screen. In last one decade, telematics have evolved from simple pen-drive based readers to real time loggers. Continuing from our last month s edition about Data Loggers, we explore Telematics that are and can be used by transporters & fleet owners in not only protecting the precious cargoes they carry but also in improving many facets of their own businesses. Read on to know more... NEWS 2 The `84,000-crore general insurance industry feels that the use and file norms unveiled recently by Irdai will ensure faster growth in the industry, though the regulations may lead to price rise of such products. The new norms, coming into force from 1 st April 2016, will allow marketing of corporate products even before the regulatory approval. The new system would enable insurers to adapt faster to the requirements of commercial entities. These new norms will bring in a great deal of discipline in the general insurance industry improving the financials of the industry. With the stipulation that the general insurers have to operate under 100 per cent combined ratio, the industry should see rate hardening which over a period of time would ensure underwriting profits. In some of the competitive risk areas, this would likely improve the profitability of insurers as a whole. These IRDAI norms would facilitate insurance companies to adopt a more structured approach while designing products, pricing Issue 5 MARINE NEWSLINK and diligently manage the operations of the entire product lifecycle. This change will stand in good stead for companies, as they will be able to create more innovative and need based products. The new norms would check under pricing as the pricing would require actuarial and technical justification that has to be approved by a product management committee, a special committee to be formed by the concerned company. Insurance companies have asked the industry body General Insurance Council (GIC) to prepare the common wordings while designing covers for the corporates. The general insurers who are already doing business in the current market will be benefited to sell new products. This will contribute growth in gross written premium for the year Industry is yet to mature to be empowered. In order to protect retail customers interest, regulatory oversight is desirable at this juncture, Tata AIG General Insurance president M Ravichandran said.

3 Container suffered bad weather damage on ship PHOTOS OF THE MONTH Container truck stuck

4 KNOW YOUR CARGO: TELEMATICS 4 Further to February edition wherein we covered the basic loggers and indicators that can help in arresting and/or controlling cargo losses during transits, we will discuss more advanced tracking & tracing systems that can give us information at hand. First, more and more businesses are finding that fleet telematics brings in significant benefits to their businesses. It is something that they cannot live without if they want to stay competitive. Second, the components of fleet telematics systems are getting more and more affordable as it gains capabilities. telematics. Fleet telematics makes use of the GPS receiver to pinpoint the vehicle s exact location and then uses the GSM device to send it to configured mobile phone or computer dashboard. Telematics not only capture and transmit location data, but it can also log other forms of data, making fleet tracking systems work harder and with additional functionalities. For instance, owner can have ready information on whether the vehicles are in operation, idling or stopped; know the Most fleet tracking systems make use of GPS satellites to determine their location. And this is the reason why people think that that is all they need. What most people do not realize is that GPS technology is part of telematics. Telematics is anything that is able to receive, send and store data and has something to do with remote objects. The GPS tracker therefore is a piece of Issue 5 MARINE NEWSLINK

5 vehicle s speed; recognize the components of vehicle engine and other information. As a result telematics can immensely help to increase fleet s productivity, reduce labour costs, minimize fuel wastage, improve customer service, develop fleet safety, get better security, reduce operating expenses, or even clamp down on bad driving behaviour and unauthorized use of vehicles. The most common vehicle tracking systems technologies are GPS and GLONASS. fleet tracking systems: the tracking device, the tracking server and the user interface. The tracking device: This can be a GPS or GLONASS equipped device that is fitted into the trucks, cars and other vehicles. The device captures the location and time from the vehicles and relays it to the central server. The other information that these devices can track include the amount of balance fuel, the temperature of engine, geo-coding, the altitude, tire pressure, headlight and taillight status, ignition, battery status and the number of GPS satellites that are open to it, the emergency button status, idling information, the RPM of the engine, and the GPRS status, among others. The tracking server: This receives and stores the data being transmitted by your tracking device. The server serves up the information that the user wants. 5 GPS is short for Global Positioning systems, a satellite-based navigation system that gathers both location and time information. Because it is based on space satellites, it is able to gather this information in any weather conditions and from anywhere in the world for as long there is a direct line of sight to at least four GPS satellites. GLONASS is a satellite navigation system that is operated by Russia s Aerospace Defence Forces. GLONASS is widely seen as an alternative to GPS and is the second navigational systems that have coverage worldwide and high precision. There are systems that use a combination of GPS and GLONASS technologies. There are three components of a typical The user interface: This is what fleet managers see. They work with the user interface in order to access the information stored in the server and generate reports easily. GPS TRACKING DEVICE This device uses global positioning systems to get the accurate whereabouts of a person or vehicle. It records the location of the asset being tracked periodically. Depending on the type of tracking device being used, the position data can either be stored in the tracking device unit or communicated to a wired computer or a database using a variety of modes including radio, satellite and cellular networks. A typical device would include the GPS module that would enable it to receive GPS signals and figure out the device s position MARINE NEWSLINK Issue 5

6 and location, and it may have some sort of storage device as well. DIFFERENT TYPES OF GPS TRACKING DEVICES There are basically three kinds of GPS tracking devices that are available in the market today and each one works differently when compared with the others. All of these GPS tracking devices collect location data, but they differ in what they do with the collected data: loggers in order to recover or locate stolen vehicles. Data pushers Data pushers (aka GPS beacon) send the location information, as well as other vehicle data to a server that was configured to receive its transmissions. The server or computer stores that data and can even do some analysis on it. This is the most common kind of fleet tracking device. 6 Data loggers (data recorder) Data logger is a type of GPS tracking device that simply records its position at regular intervals. Data logger gathers the data in its storage, which can either be an internal flash memory or a memory card. To access gathered, one can either take out the memory card or connect it to computer via a USB cable. A GPS-enabled smart-phone is often used as a data pusher. Commercial fleet and other companies with mobile employees that are regularly out of the office use data pushers as part of their fleet management systems. Data loggers make sense for businesses that do not need to have real-time location information about their vehicles. However, they would not be able to dispatch a vehicle to the nearest drop off point or delivery pick up, nor can know for sure where a particular vehicle is at6 any given point of time and lastly it would not be possible to use data In fleet management, a data pusher would also send location and vehicle data at a regular interval. It can also be triggered by an event, such as hard braking, getting out of or getting into a geo-fenced area, or specific drivers behaviour, among other things. Data pushers are perfect to dispatch the nearest vehicle to a customer pickup location. The available info of current locations can also be used to warn drivers of traffic jams or bad road and weather conditions, enabling drivers and operators Issue 5 MARINE NEWSLINK

7 to avoid being stuck in traffic or going through roads that might lead them to have an accident. Data pullers (aka GPS transponders) GPS transponders/devices are always on and can provide location data on demand. So while data pushers send location data automatically and without prompting, one would need to query data pullers in order to receive the data required. Data pullers are not that popular yet, in terms of use, but it is ideal for cases wherein there is need to track an asset that does not have a steady and continuous source of power for it to send data on regular intervals. Data pullers are used in shipping containers and freights. It can also be used for cases wherein one only needs to know the vehicle s location occasionally, such as knowing if the driver is sticking to his or her assigned route or to get a more accurate time of arrival. GPS TRACKING SERVER Your GPS tracking devices gather location and vehicle data and sends it to your GPS tracking server. The server then stores it in the database, which then serves it to the user on demand. One can build your own GPS tracking server by using server software. One server is enough to track thousands of vehicles and these can be displayed on a map with precise details, even down to the street view level for each vehicle. All one needs is the software, a computer and an Internet connection that has a fixed internet connection. USER INTERFACE Most fleet tracking systems make use of a Web-based user interface where the fleet managers could see all reports, the data and everything they need to see. At its most basic, the user interface can show vehicle s locations, perhaps using a detailed map, satellite imaging, address, or a combination of all these. For instance, the user interface allows fleet owner/user to see all the vehicle locations on a single map, letting them have an overview of where their fleet is at that particular moment. The user interface is where fleet owner/user can find all the reports that they have set up for their fleet tracking and fleet management efforts. It can also allow fleet owner/user to dispatch and change routes using the user interface. If the service allows specifying a geo-fenced area, the user interface is where one will set it up. A geo-fence is an area that the vehicles should be confined in. The concept is that the vehicles should not go out of geo-fenced/restricted specified area. Fleet owner/user can get alerts on their user interface that a particular vehicle has gone out of the geo-fenced area. This will help fleet owner/user to know if a driver is going off the assigned route or if a vehicle might have been stolen. 7 PASSIVE TRACKING SYSTEMS Passive tracking systems are able to store GPS location, vehicle speed and headings. MARINE NEWSLINK Issue 5

8 8 The device is kept in the vehicle that is being tracked during the entire trip and fleet owner/user is able to download and access the data when the vehicle comes back to the office. Obviously, a passive tracking system is ideal for businesses that do not require real-time tracking data for their vehicles or for those businesses that would want to track their mileage and other information. ACTIVE TRACKING SYSTEMS Active tracking systems make use of combination of cellular networks and/ or satellite systems to send the data to a computer. Active tracking systems are able to provide with real-time location data and vehicle information. Fleet owner/user can know where their vehicle at any given time. This can be displayed on a map or they can even see how their vehicle is moving or behaving. An active tracking system is also ideal for those businesses that want to set up a geo-fence. If the vehicle enters or exits the predetermined geo-fenced area the system is alerted. Active tracking systems also give the capability to track vehicle in the event that it is stolen, which is impossible to do with passive tracking systems. Optimize resources. Depending on the software in use, fleet owner/user might be able to gain insights on how to optimize their use of your daily resources.. Deliver superior customer service. There are a lot of ways that fleet tracking systems could help in improving customer service. For one, fleet owner/user can now accurately give a customer a more or less accurate time of arrival. A courier service, for example, could give their customers tracking numbers that would help them monitor their packages to ensure that (a) it is getting delivered, and (2) when it is getting delivered. For pick up transactions, they could easily dispatch the closest truck so that the transaction is fast and quick. Save on insurance costs. Fleet tracking systems can greatly assist by giving real time information on the location and condition of a vehicle thereby giving optimal information about the cargo loaded on that vehicle. This is where a client with High Value cargo, sensitive cargo or timebound cargoes will benefit and with their cargo being safe at all times, their insurance costs will be saved. THE BENEFITS: Cut down on operating expenses: Fleet owner/user can plan routes better based on the data that is gathered over time, gain operational efficiency that leads to lower fuel consumption. Fleet owner/user can also save some money by having fewer discrepancies in billing, incurring lower overtime expenses paid and avoiding costs arising from unauthorized use of vehicles. Issue 5 MARINE NEWSLINK

9 BACK TO BASICS QUESTION OF THE MONTH Terms of export: C&F (CFR) Basis of valuation: C&F + 10% Movement from: Pune to Navasheva, Mumbai and then to Hamburg. Covered against ITC-A + SRCC + FOB clause. Cost of cargo: `9 lakhs and ocean freight: `1 lakh = Total Invoice Value `10 lakhs + 10% markup = `11.00 lakhs (sum insured under policy) The consignment met with an accident on the way from Pune to Mumbai and became total loss. How much claim the insured will get? Q LAST MONTH S QUESTION: Cargo is exported from Coimbatore, India on CFR Hamburg, Germany was covered by an insurer. 9 Cargo reached Chennai on 1 st Feb and was awaiting custom clearance in a CFS (Container freight Station). Due to some dispute with customs it could be moved to port only on 14 th Feb and on the same day whilst loading to the ship the container fell onboard the ship (not in sea) damaging the goods. Is the claim payable? A Yes if the policy is subject to FOB clause. As per INCO terms 2010 in an FOB or CFR shipment, the seller is responsible till the cargo is placed on board of overseas vessel. As per FOB clause, coverage is available for 14 days after reaching the port / port city until the cargo is placed on board of overseas vessel. CORRECT ANSWERS SENT BY: Mr. M.A. Niranjan Unison Insurance Broking Services Pvt. Ltd., Hyderabad MARINE NEWSLINK Issue 5

10 IF YOU HAVE ANY COMMENTS / FEEDBACK PLEASE SEND IT TO Keyur Gandhi National Manager Marine keyur.gandhi@tata-aig.com Vijay Pal Singh Marine Loss Control Manager India vijaypal.singh@tata-aig.com CONTACT US Tata-AIG General Insurance Company Limited, Peninsula Business Park, Tower A, 15 th Floor, G.K.Marg, Lower Parel, Mumbai DISCLAIMER The publication is for private circulation only. It is for internal additional information of employees and associates. Views expressed in the article are personal views of author and the publisher, editor does not own any responsibility legally or otherwise. Though due care is taken to give accurate information, the readers are advised to verify independently the correctness of the information given. For all earlier months Marine Newslink issues, please do visit our website link