26 INSURANCE 2011 ABLA YEARBOOK Everybody and every company is exposed to risk, which may or may not materialize. So, considering the variables involved in regard to risk, we will address every possibility to which a vehicle rental fleet is subject to, based on the relevance and pertinence of the topic to the rental market. As a risk is a random event, its future materialization can result in financial losses that are difficult to measure in terms of extent and magnitude. It must be properly handled through effective and sensible management which can minimize the causes and prevent losses. There are several ways to deal with risk, including: prevention, retention (self-insurance), transference, and minimization. Considering that it is unlikely to prevent a risk simply through the owner’s desire to do so, in the case in point, and aggravated by features of the vehicle rental business, where vehicles are provided to drivers The best protection for your vehicle • Periodic vehicle maintenance, complying with the manufacturer’s guidelines and specifications. • Thorough and careful checking by the company, especially for leisure and business rentals. • Contracts include a clause that set out the rights and obligations of the parties regarding events that may result in losses, damages and liabilities. • In fleet management, encourage responsible driving courses to achieve the best standards in driving, respect for people, and in vehicle care. A vehicle rental company should adopt a preventive attitude, so the vehicle is returned with minimal depreciation, allowing a good deal when sold. The key measures are:
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