The Road Haulage Association (RHA) has rolled out its updated terms and conditions for 2024. This ushers in significant changes that haulage service businesses need to be aware of. Here's a breakdown of the key modifications and what you must do to ensure compliance and smooth operations.
First and foremost, using RHA terms and conditions requires membership. Unauthorised utilisation not only breaches copyright but can also result in legal repercussions. Therefore, you must ensure your membership status and adhere to the stipulated terms.
Another critical aspect of adopting the updated terms is informing customers. You’ll need to communicate the changes in writing. And you will need to provide either a copy of the revised terms or direct them to a designated web link for review. As a customer of a bank, you’d expect updates from them regarding your account terms. So you should also make your customers aware of alterations to business agreements.
Furthermore, any alterations in contractual terms must be communicated to your insurer. This is because they constitute a change in the contract. And changes potentially impact your cover and liabilities. Let's explore the fundamental changes within the RHA 2024 terms:
Condition 4: Loading and unloading
Under this condition, there's a notable shift in responsibility towards the customer. Specifically for loading and unloading goods onto the vehicle. The haulier is absolved of liability for any loss or damage during these processes. This emphasises the importance of proper handling and equipment usage. Customers must ensure equipment suitability and operation by trained personnel. They must also indemnify carriers against any consequences of:
- failure;
- misuse;
- or unsuitability of such equipment.
Additionally, you must permit load inspections and provide risk assessments for loading equipment. Carriers should also be granted the right to refuse entry to unsafe premises.
Condition 5: Obligations of the customer
To facilitate proper handling, you must furnish accurate shipment information. This includes weights and contents. Moreover, access to welfare facilities for drivers is mandated, ensuring humane working conditions.
Condition 6: Receipts
This condition no longer requires a "signed" document. Remember that the absence of a receipt does not entitle withholding of carrier charges. This emphasises the importance of timely and accurate documentation.
Condition 14.1
Arguably, the most significant change pertains to the time limit for submitting claims for loss or damage. You must notify carriers within seven days of transit completion. You also have to provide supporting evidence of the loss/damage claimed within the same timeframe. This streamlines the claims process and ensures timely resolution.
In conclusion, the RHA 2024 terms introduce pivotal changes. These changes that necessitate proactive action from clients. Membership, customer communication, informing insurers, and adherence to revised obligations are paramount. Businesses need to understand and implement these changes effectively. In doing so they can navigate the evolving landscape of haulage services while mitigating risks and ensuring compliance.
What you need to do:
- Advise your customers of their contract conditions
- Notify your insurer if you propose to adopt the latest edition of the RHA Conditions of Carriage. (Or any other contract terms not previously disclosed to your insurer).
If you’d like to speak to someone about how these changes may affect your insurance, our haulage and logistics team is here to help.
The information contained herein is based on sources we believe reliable and should be understood to be general insurance and risk management information only. The information is not intended to be taken as advice and cannot be relied upon as such. Statements concerning legal, tax or accounting matters should be understood to be general observations based solely on our experience as insurance brokers and risk consultants and should not be relied upon as legal, tax or accounting advice, which we are not authorised to provide.
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