Manufacturers Insurance – Toyota

Manufacturers insurance will remain a priority for the world’s car companies, especially after its just been revealed that Toyota paid £6.5m to the family involved in the Lexus crash which resulted in millions of recalls.



The Lexus car crash allegedly happened after an accelerator pedal got stuck in the car’s floor mat which was said to have led to the death of four people; all from one family. As to whether Toyota invoked any its of manufacturers insurance claims, this was not made public. Indeed, Toyota was reported as being ‘disappointed’ that the settlement, which was negotiated last September, had been made public at all.



The Company, which would no doubt have the best manufacturing insurance available and has not admitted, or denied liability in the settlement details, said:

"As is common in these cases, these parties agreed to keep the amount confidential, in part to protect the families from unwanted solicitations and to allow them to move on from this difficult period."



The crash, which happened in August 2009, triggered a huge recall for a large number of vehicles. It is claimed that the accelerator pedal got caught in the car’s floor mat which led to a string of accidents. The car at one stage reached 120mph, before it hit another vehicle and finally crashed off an embankment, before exploding.



The accident killed the four people in the car, including an off-duty Californian Highway Patrol Officer. His wife, daughter and brother-in-law were also fatally injured.



Toyota, which is likely to be protected by a comprehensive number of manufacturing insurance, had to move quickly to replace a vast number of their car floor mats after the crash investigators pointed the finger of blame in that direction.



News of the settlement came after a record fine from US authorities levied against Toyota for mishandling their car recalls. They have been fined £20.8m, which comes after a similar fine, this time for £10m levied in April.



Toyota went through a period of almost ritual humiliation as news of its huge car recall programmes were enthusiastically covered by the world’s media for months. But despite the unwanted publicity, and the open apologies from a remorseful senior management, the manufacturer, which sells the most vehicles in the world, appears to be undaunted, with profits continuing to rise.



It’s unlikely this success will stop it continually enhancing its manufacturers insurance polices though, as it knows better than most how a problem in the production process can have devastating results upon the corporate image and stability. Toyota, like all car manufacturers, will appreciate how a fault, discovered once a car is in full production and on the road, can have such far-reaching ramifications across the globe.



For more information visit http://www.titan-insurance.com/