Driving risk management back to basics

Management - News

Thursday, 21 December 2006

Thousands of people are involved in road accidents in the course of their work every year. Bill Pownall says managers of UK vehicle fleets have a duty to help reduce these appalling figures.

Although the numbers fell slightly from previous years, more than 3,200 people were killed on UK roads in 2004 and more than 31,000 were seriously injured.[1] As many as 1,000 road deaths and 13,000 serious injuries a year involve people who are at work.[2] This equates to about 20 fatalities and 250 serious injuries per week.

It is estimated that as few as three per cent of small non-commercial car fleets are managed by a full-time fleet manager.[3] The percentage does not significantly improve as fleet size increases. The majority of fleets are managed by people with more than one job function and with little time to devote to the task.

Companies will look at the most cost-effective method of sourcing and managing vehicles and often outsource this to a leasing company. However, insufficient thought is often given to the people who drive the vehicles.

The statistics create a bleak picture: typically 65 per cent of all company vehicles will be involved in an incident during a year.[4] Many will include a personal injury element. Annual motor market figures compiled by The Association of British Insurers indicate that for 2004 average accidental damage costs increased to £1,102 (£1,007 in 2003) and also that average bodily injury claim payments rose to £4,818 (£4,745 in 2003).

Norwich Union's own research shows that fewer than eight per cent of fleets are doing any kind of driver training.[5] Yet more disturbing is the fact that 85 per cent of fleets are not covering four of the most basic risk management procedures - licence checking, new driver vetting, issuing a driver's handbook and investigating accidents.[6]

This situation has to change; not only because it is a legal requirement to safeguard your employees while driving at work but also because it makes economic sense. In short, your fleet focus must be directed towards the driver, the vehicle and the journey.

The driver

It is a legal requirement to have a written health and safety policy, which requires you to ensure, so far as is reasonably practical, the health, safety and welfare of all employees while driving at work. You also have a responsibility to ensure that others are not put at risk by your work-related driving activities.

This is in addition to the implications surrounding the impending Corporate Manslaughter Bill which will ensure that companies are held liable if employees are involved in a fatal accident while driving at work and that this was caused by the failings of the company's safety policy. It is not the intention that this offence should replace existing forms of redress but to complement them and to ensure organisations that pay scant attention to the health and safety of their workers are held to account.

Policies must be reviewed regularly to ensure that they reflect any changes in risk exposure. Confirmation that the Health and Safety at Work Act applies to driving at work necessitates a review, and any policy revisions must be brought to the attention of all drivers.

The most effective way of communicating your policy is to issue a driver's handbook.

This should give clear guidance and instruction on how the fleet is managed, confirm systems and procedures in place and instruct drivers on what is expected of them and what they should do in an emergency. To ensure this vital information is fully understood by drivers, the contents should be explained as part of the induction process and the driver needs to sign to confirm this has happened.

Implementing basic safeguards to protect the driver and to allow the company to discharge its responsibilities are vital. For example, while you may think you know who drives on company business, a variety of roles may slip through the net, including vehicles used by the driver's spouse, partner and siblings; occasional drivers of pool and hire cars; drivers using their own cars (private and/or cash for car); commercial drivers; specialist vehicles - forklift trucks, minibuses, tractors etc - and agency drivers.

Creating a fleet profile of all company drivers will help you determine their competence, experience and exposure. It should also include basic but important details such as their age, length of time with the company, miles driven per year, period the driving licence has been held for and job function. Driving licences should be checked at least annually.

Details of accidents should always be recorded as well as claims. It stands to reason that investigating the cause will often help companies implement simple but highly effective remedial measures. Accident trends can then be analysed to help you identify high-risk/high-mileage drivers and take the necessary precautions.

Companies should also produce risk assessments for individuals or groups within a clearly defined job function, while establishing safe systems of work for each job group and instigating training where shortfalls in procedures are identified.

When vetting new employees, it is vitally important that you have a clear procedure.

For example, there should be a medical or questionnaire which includes eye-sight checks; commercial drivers over 45 years old must have a medical every five years to renew their licence; driving licences should be checked to ensure they are valid for the vehicle type required and to determine the length of time held; criminal records need to be checked where the job function requires it and accident/claims history should be obtained from previous employers along with references.

An induction course gives you the opportunity to promote the company's philosophy, systems and procedures and demonstrates that the company is taking health and safety seriously. All new drivers should attend, including newly-appointed senior managers. For commercial drivers, including agency and part-time drivers, a practical driving risk assessment should be included as part of their induction. Where appropriate, non-commercial drivers, especially young and inexperienced ones, should also be assessed.

The vehicle

When choosing vehicles for your fleet, there are a number of areas to consider. Finding the right vehicle for the job will mean assessing not only its cost, load capacity, lifting attachments, seating capacity, fuel type and engine size, but also the age and experience of the person who will be driving it, any complex servicing requirements and the availability of dealerships and workshops.

Fuel accounts for nearly a third of the overall costs of a company vehicle. However, costs can be controlled by the choice of vehicle, altering driving style and tyre type etc. Good tyres are essential; this means keeping up to date on checking the tread depth on the company's vehicles as part of ongoing procedures.

Maintenance costs and service are generally included in a lease contract but they will vary, depending on the level of equipment supplied with the vehicle. If the fleet is owned, it makes economic sense to restrict vehicle choice to a limited number of manufacturers who have servicing and repair facilities close by.

Handling staff with privately-owned vehicles has implications for companies beyond simply providing a cash allowance. All private vehicles used for business need to be safe, adequately maintained and fit for the purpose, as any accidents resulting from an unsafe vehicle could render the company jointly liable. It should be confirmed annually that these employees have valid driving licences, motor insurance covering business use, up-to-date MOT certificates and regular services to the manufacturer's specifications.

Drivers are legally liable for the condition and roadworthiness of their vehicles. They need to include vehicle inspection as part of their duties. However, the employer must conduct periodic checks to ensure this is the case.

The journey

The final piece in the jigsaw of fleet management issues is the journey. Driving fatigue is a major problem with all drivers. You have the potential to lose control of a vehicle when tired.

Commercial vehicle fleets may not have any choice in using vehicles to deliver their products. Always ask: "Is the journey necessary? Could we not accomplish our needs by telephone or video conferencing? Could we use the train or fly to a meeting or just use email?"

If a journey by road is unavoidable, there are several things to bear in mind to minimise the risk involved.

Routes should be planned to maximise safety and minimise time spent driving. This can be as simple as assessing the shortest route to take or by following designated routes.

Schedules should be realistic and achievable because companies can be prosecuted if it is proven that an accident occurred due to pressure to complete unrealistic schedules.

Sufficient time should be allowed to complete journeys safely and not put undue pressure on the driver. The distance driven should not be excessive and breaks should be built in to reduce fatigue. Weather conditions are foreseeable and schedules should be flexible enough to take this into account. Drivers who regularly speed even ten per cent above the speed limits are more likely to be involved in an accident and are more likely to commit other driving violations, such as running red lights and driving too close to other cars.

Technology can help fleet managers with their risk management. Managers who choose to install telematics can manage speed, duration on the road, route planning and realistic schedules by using the reporting information to make informed changes within their fleets. Regardless of the fleet size, telematics not only delivers operational cost savings but can also lead to a reduced number of claims incidents when used as part of the risk management toolkit. Telematics offers any fleet manager who takes the data into the heart of the business an opportunity to comply with its duty of care obligation and to increase productivity - but safely.

References

Department for Transport, Road Casualties Great Britain 2004 Annual Report.
RoadSafe press release, June 2005, Road Death Toll Still Too High.
The 1999 Lex Leasing Report on Company Motoring.
ALD Automotive Guide to Fleet Management.
Research conducted with 12,000 Norwich Union fleet policy holders from July 2002 to December 2003.
Ibid.