"The Health & Safety at Work Act 1974, the basis of health & safety law in this country, sets out employer’s duties to its employees and members of the general public and the duties that employees have to themselves and each other. Remember that the law states that a motor vehicle is a place of work. The Road Safety Bill contains a number of measures aimed at helping to improve safety on the roads of Great Britain and to help achieve targets for the reduction of casualty frequency and in particular revisions to the law relative to the use of mobile phones which is covered under the “Drivers” section of this document. A general introduction has been produced explaining how the new offence of corporate manslaughter/homicide works and where it will apply. It is intended to provide fundamental information to employers, senior managers and others seeking an overview of the new legislation. "

1. MOTOR FLEETS
RISK MANAGEMENT GUIDE
JANUARY 2008

2. INDEX
INTRODUCTION PAGES 1/2/3
RECRUITMENT PAGE 4
DRIVERS PAGES 5/6
VEHICLES PAGE 7/8
VEHICLE RECOVERY PAGE 9
ACCIDENT REPORTING PAGE 10
PRO-ACTIVITY PAGES 11/12
DISCIPLINARY ACTION PAGES 13/14
DRIVER TRAINING PAGE 15
RISK STRATEGY PAGE 16
SUMMARY PAGE 17
COMMENT PAGE 18
USEFUL WEBSITES PAGE 19
NOTES PAGE 20

3. INTRODUCTION
This document has been designed as an aide to motor fleet operators to assist
where appropriate with the control of the fleet claims experience, to reduce the
frequency and cost of motor claims and to encourage teamwork throughout the
business.
A loss control programme should begin with a “Statement of Policy” from senior
management, signed by a company director that is clear to all employees. There
should also be an effective review mechanism to ensure that the company statement
is always appropriate through periods of change.
Example:
“Our company is committed to the continuous development of the driving
force. We recognise the importance of providing full support to develop and
improve business performance through driver training that will focus on the
improvement of driving skills, organisational techniques, safety awareness
and attitude to customers to achieve the highest possible standards during the
course of employment.
Continuous professional development is crucial to the overall performance of
the company to reduce the frequency and cost of motor claims and to ensure
that all drivers comply fully with their moral and legal obligations to enhance
the company image. All drivers must take responsibility for their own
development to achieve and maintain a high standard of performance.
Management will regularly assess the standards of the driving force in the
execution of their duties. This will include a focus on each and every incident
(including compulsory driver de-briefs) to consider any training or disciplinary
requirements.
FOR THIS PROGRAMME TO BE EFFECTIVE ALL DRIVERS SHOULD TAKE A
SERIOUS INTEREST IN ACCIDENT PREVENTION AND TREAT LOSS CONTROL
AS AN INTEGRAL PART OF THEIR DAY TO DAY ACTIVITIES.
REMEMBER WE ARE ALL WORKING AS A TEAM TO ACHIEVE BEST
PRACTICE IN OUR BUSINESS.”
Each individual business needs to consider how the communication and introduction
of the loss control programme will be implemented. The day to day management of
the programme requires careful planning and will need to be accounted for in the
company budget with consideration to the allocation of resources not just for the
assessment of drivers but also corrective training and risk management initiatives.
A statement of the company policy should be posted in prominent places and should
form part of the terms of employment.
SENIOR MANAGEMENT SHOULD BE COMMITTED TO THE IMPLEMENTATION
AND CONTINUANCE OF THE PROCESSES INVOLVED.
1

4. INTRODUCTION (Continued)
The Health & Safety at Work Act 1974 is the basis of health & safety law in this
country. The Act sets out employer’s duties to its employees and members of the
general public and the duties that employees have to themselves and each other.
Remember that the law states that a motor vehicle is a place of work.
Within The Act the duties are qualified by the principle of “so far as is reasonably
practicable” and requires good management and a common sense approach to
identify risks within the business and take sensible and practical measures to deal
with them competently.
The Management of Health and Safety at Work Regulations 1999 provides
specific detail of employer’s obligations to manage health & safety under the Health
& Safety at Work Act.
This includes a requirement to carry out an assessment of the risks to the health and
safety of their employees, or themselves, whilst they are at work, and to other people
who may be affected by their work activities. This includes any driving activity on the
road. The regulations require risk assessment to be reviewed periodically to ensure
that it remains valid and employers with five or more employees must also record the
significant findings of their risk assessments.
Employers also need to:
• Make arrangements to implement health & safety measures identified as
necessary
• Appoint competent people to ensure the correct implementation of the
measures
• Set up (or review where existing) emergency procedures
• Provide training and clear information to employees
• Work together with other employers who may be sharing the same workplace
Although drivers are ultimately responsible for how a vehicle is driven on the road
the employer can and should have a significant influence on what the driver does.
For example, the imposition of unrealistic delivery schedules, inadequate training
and failure to properly maintain vehicles all increase the risk of road accidents and
potential liability against the driving employee and the employer.
Employers and their managers therefore have a duty of care under the Health &
Safety at Work Act 1974 (HASWA) and the Management of Health and Safety at
Work Regulations 1999 (MHSWR).
HSE
You should ensure that employees are provided with a safe working environment to
avoid potential liabilities and maximise performance within the business. Reference
should be made the Health & Safety Executive (HSE) who publishes free leaflets
and publications. Information is available at www.hse.gov.uk
2

5. INTRODUCTION (Continued)
Road Safety Act 2006
The Road Safety Bill was given Royal Assent on 8th November 2006. The Act
contains a number of measures aimed at helping to improve safety on the roads of
Great Britain and to help achieve targets for the reduction of casualty frequency and
in particular revisions to the law relative to the use of mobile phones which is
covered under the “Drivers” section of this document.
Corporate Manslaughter and Corporate Homicide Act 2007
The Corporate Manslaughter and Corporate Homicide Act 2007 received Royal
Assent on 26th July 2007. The Act introduced a new offence, across the UK, for
prosecuting companies and other organisations where there has been a gross
failing, throughout the organisation, in the management of health and safety with
fatal consequences. The new offence is effective on 6 April 2008.
In the lead up to the Act coming into force, the Ministry of Justice has recently
published guidance providing further information about the Act and its
implementation, set out below:
• Introduction to the Act:
A general introduction has been produced explaining how the new offence of
corporate manslaughter/homicide works and where it will apply. It is intended to
provide fundamental information to employers, senior managers and others seeking
an overview of the new legislation.
Understanding the Corporate Manslaughter and Corporate Homicide Act 2007
• Detailed guidance on implementation of the Act
A fuller guide has also been produced, including which organisations are covered,
the sort of incident to which it applies and those that are exempt and the test that will
be applied by the courts. It is intended for those who need to know how the new Act
will work in some detail, including health and safety managers and professionals.
Reforming corporate liability for work-related death: a guide to the Corporate
Manslaughter and Corporate Homicide Act 2007
For more information on the Act, please see the Ministry of Justice website at:
www.justice.gov.uk/guidance/manslaughteractguidance.htm
3

6. RECRUITMENT
This is a crucial part of the company policy. Most employees will consider
themselves to be good drivers when in reality most are not as good as they think
they are! Roles and responsibility should be clearly defined. Company policy,
particularly on drugs & alcohol and the use of mobile phones should be made
abundantly clear. Here are some examples of the requirements that might be
considered in the recruitment process:
• All references contained within the job application form should be
followed up to ensure that the history of the prospective employee is
accurate and that their references are to an acceptable standard
particularly regarding sickness records.
• Checks for criminal convictions and county court judgements.
• Completion of a numeracy / literacy test
• Upon recruitment the successful candidate should be able to provide
an original driving licence with no more than 3 penalty points
(company policy will dictate the number acceptable that may be below
or above this example) and (dependant upon the terms & conditions
of employment) pass a driving test under the observation of the
training manager. The test should take no longer than an hour and
assess the applicant’s skills in both urban, rural and where
appropriate motorway conditions. The training manager should also
give the driver a reversing test between two static objects. A test form
should be completed by the training manager, signed and dated with
his recommendations for recruitment, based upon the applicant’s
driving skills, knowledge of the Highway Code and any other relevant
technical knowledge.
• For large goods vehicles (LGV) of 7.5 tonne gross vehicle weight and
above or passenger carrying vehicles (PCV) the driver should also
produce his original LGV or PCV licence and be subjected to a test as
outlined above for the vehicle that he would be expected to drive in
the course of his employment.
• Licence checks should be carried out every 6 months by the fleet
administrator. Drivers failing to produce their original licence (not a
copy) within 14 days of request should, subject to agreement on
company policy, be suspended without pay until the licence is
produced. When presented with a “duplicate” licence and an
explanation of why the original is not available DVLA should be
contacted by telephone and the person who holds the licence should
be present. DVLA will carry out a security check with the licence
holder and then confirm details of any endorsements. It is essential
for all duplicate licences to be checked with DVLA.
• The interviewer should clearly identify any physical or mental
infirmities (particularly heart or diabetes problems which might
increase the risk of an accident) and new recruits should always be
subject to a medical examination to incorporate an eyesight test. To
ensure that any eye defects are identified the examination should be
preferably carried out by a fully qualified optometrist.
4

7. DRIVERS
The Health & Safety at Work Act states that drivers’ must co-operate with the
employer to ensure health & safety compliance.
Continual objective assessment is a sound proactive approach to include:
• Timekeeping
• Attitude / behaviour
• Hazard perception / accident awareness
• Knowledge of driving hours & tachograph regulations / RTA / highway code
• Accident record (including a record of near misses)
• Tachograph review (for appropriate vehicles)
• Dress and appearance
Defensive driving techniques are an important aspect of the loss control programme
to not only avoid hazardous situations and potential accidents but to minimise fuel
consumption and general wear & tear on the company vehicle.
Drivers should carry their original driving licence with them at all times. All licence
endorsements and any pending prosecutions SHOULD be reported to the company
representative as they arise. Any physical or mental infirmity should also be reported
immediately. Failure to do so could invalidate the Insurance policy.
The above processes will highlight underperformance and focus the driver’s mind on
the issues and the solutions necessary to improve standards to an acceptable level.
Driver cab pack / handbook
All drivers should be provided with (and sign for receipt of) an information pack or
driver handbook. To assist them in the event of an accident a “Scene of Accident
Notification Form” should be completed that will provide the driver with details of the
procedure to adopt and the information to be recorded at the scene of an accident.
For accidents involving innocent third parties it is important for the company’s
motor insurers to control the cost of third party claims and ensure that third
parties fully mitigate their losses. Many operators also consider it prudent to
provide their drivers with disposable cameras so that damage caused and positions
of vehicles can be photographed at the accident scene. Photographic evidence can
be crucial to the claims handling process and provides the insurance company with a
window to the incident. QBE can provide details of companies providing disposable
cameras at competitive prices. QBE can also provide the fleet operator with a supply
of scene of accident notification forms.
With the advent of modern technology it is now considered prudent by some
companies to instruct their driving force to use mobile phones to photograph
the driver of other vehicles involved in road traffic accidents together with the
damage sustained, position of vehicles at the point of impact and skid marks
where appropriate to do so. A simple digital image can often prove to be
conclusive evidence for insurers negotiating claims on behalf of their
policyholders.
It should be stressed to drivers that the impression they make upon customers and
members of the public is of great importance to the company that they are
representing and that both complimentary and detrimental comments made about
them will be recorded in their personnel records.
5

8. DRIVERS (Continued)
Mobile Phones
Regulations came into force on 1st December 2003 making it an offence to use a
handheld mobile phone whilst driving. The sight of a motorist driving erratically whilst
using a phone is a well recognised menace and studies have supported that
perception demonstrating that the risk of accident whilst using a phone is 4 times
higher. With one in three drivers admitting to using a phone whilst driving, the
introduction of the regulations was widely welcomed as a positive step towards
improving road safety.
The penalty is a £30 fixed penalty or up to £1,000 on conviction in court (£2,500 for
drivers of goods vehicles, buses or coaches). Drivers still risk prosecution (for failure
to have proper control) if they use hands-free phones when driving.
All employers and their drivers should be aware of forthcoming changes to the law
contained in the Road Safety Act 2006. As from 27th February 2007 the Act will
impose tougher penalties on the use of mobile telephones whilst in control of a
vehicle. The main provisions to be aware of are:
Hand Held Phones
Under the Act the use of a hand held phone whilst driving becomes an endorseable
offence with the £30 penalty introduced in 2003 replaced by three points added to a
driving licence coupled with a fine of £60. If the matter is contested at trial, the judge
still has the power to disqualify the motorist and impose a maximum fine of £1,000,
or £2,500 in the case of drivers of goods vehicles, buses or coaches.
Hand Free Phones
The new offences include not having ‘proper control’ of a vehicle, which means a
driver can be prosecuted if he or she is distracted while using a hands free mobile
phone kit. The same penalties will apply and this becomes an endorseable offence
attracting three penalty points. It should be remembered that the police now routinely
obtain phone records of drivers involved in serious or fatal accidents.
These enhanced regulations will have a considerable impact on the 3 million
company car drivers in this country who may feel under particular pressure to use a
phone whilst driving.
Employer’s Liability
It is an offence to cause or permit either the use of a hand held phone, or driving
without control. Employers should ensure that their employees are aware of the risks
of using mobile phones while driving and the potential criminal liability. They should
ensure that they have a policy for the use of mobile phones in motor vehicles and
reconsider any policies permitting the use of hands free phones by their employees.
The safest telephone usage policy would be to prohibit the use a phone while
driving, avoiding the risk of a health and safety prosecution. Breach of
company policy should be a disciplinary offence and employers should ensure
not only that company policy is being applied, but also that their employees
are aware of the consequences of failure to do so.
6

9. VEHICLES
The Provision and Use of Work Equipment Regulations 1998 (PUWER)
PUWER replaces the Provision & Use of Work Equipment Regulations 1992 and
adds to the requirements of the previous regulation. The regulation requires that
risks to people’s health & safety, from equipment they use at work (including motor
vehicles) be prevented or controlled. Lifting equipment is also subject to separate
regulations under the Lifting Equipment Regulations 1998.
Under PUWER employers are required to ensure that equipment provided for use at
work is:
- suitable for the intended use
- used only be people who have received adequate information, instruction
& training
- accompanied by suitable safety measures such as protective devices,
warnings and markings
- safe for use, maintained in a safe condition and regularly inspected to
ensure that the equipment remains safe.
If you allow employees to provide their own equipment (such as private cars for
authorised business usage) it will also be covered by PUWER and you need to make
sure that it complies with the regulation.
Vehicles should therefore be kept in a safe and roadworthy condition at all times.
Regular maintenance is essential and detailed records should be maintained for all
maintenance, repairs and refurbishment carried out to each and every vehicle in the
fleet including trailers.
Regular inspections should be carried out and drivers should to be made aware of
the company policy. Consider the provision of a driver daily inspection and vehicle
defect sheet to encourage them to carry out all essential daily checks, to keep the
vehicle tidy and to report all problems experienced arising from the use of the
vehicle. Employees should be instructed to immediately report any vehicle
defects or damage found on the vehicle so that the necessary action can be
taken.
Vehicle replacement costs may be influenced by the condition of the vehicle at the
time of trade in. Drivers should be encouraged to take care of vehicles that are in
their custody & control by ensuring that regular inspections and maintenance checks
are carried out and recorded in the company records. Vehicle “ownership” and
accountability should be encouraged wherever possible to promote driver care of the
vehicle.
Consider fitting tracking systems/ immobilisers to vehicles to improve security and
monitor drivers’ usage of vehicles. This will help maintain company policy on usage
and assist with reduction in fuel costs. Potential thieves can be deterred by even the
most basic vehicle security and all drivers should be made aware that they are
responsible for safeguarding the vehicle and its contents / load whilst the vehicle is in
their custody and control. In particular they should receive written instruction to
confirm that when the vehicle is left unattended the vehicle keys must be
removed from the ignition, all windows and doors locked and all security
devices operational irrespective of the period of time that the vehicle is left
unattended.
7

10. VEHICLES (Continued)
Spot checks can be an essential part of these and other procedures adopted by the
company to keep drivers alert to the company policies. They need to be aware that
spot checks will take place at regular AND irregular intervals and reports should be
made available to both the fleet engineer and the driver.
Equally as important as the safety of the vehicle is the safety of the load that is being
carried that is the direct responsibility of the driver and his employer. If a vehicle
carries an unsafe load and/or is overloaded an offence will have been committed. It
is essential for the driver and the employer to be entirely satisfied that the load being
carried is entirely safe and within the law before the vehicle is taken onto the public
highway even when the vehicle or trailer has not been loaded by the driver or
another employee of the company. Checks should be made to ensure that the load
is spread evenly and is fully secured to prevent movement and the possibility of the
vehicle becoming unstable, particularly under heavy braking. Vehicles must never be
loaded beyond their capacity.
Speed limiters can often assist with loss control as so many accidents happen at
speeds either above the permitted limits or at unsuitable speeds for the conditions
prevailing at the time.
It may be considered prudent to request drivers to seek permission from their line
manager before a vehicle is used for any unscheduled journeys and to restrict
driving to employees only or to the employees and close relatives and NOT friends.
8

11. VEHICLE RECOVERY
Where a policy cover is provided It is essential for the cost of vehicle
collection from the scene of accidents to be controlled by the Insurer wherever
possible to ensure through the Insurer’s in house engineering team that
charges are entirely reasonable.
Insurers taking the initiative to address high (and often exorbitant) charges can
ensure that recovery and storage charges are properly controlled by instructing
proficient recovery agents who will act quickly and in accordance with agreed
recovery rates. This is particularly important for the recovery of heavy goods vehicles
where charges from recovery agents instructed by the attending police officers are
often excessive and when a recovery agent has a vehicle at their premises it is very
difficult to negotiate a fair price as they will often refuse to allow removal until their
charges as presented have been paid. Whilst in law they have no lien on a
recovered vehicle recovery operators will refuse to recognize the legal position.
It is recommended that fleet operators provide their drivers with specific instructions
on vehicle collection from an accident scene where the vehicle has been immobilized
and QBE can provide an example of an “in cab” or windscreen sticker instruction for
the driver to ensure early, proficient and cost effective collection by using the QBE
preferred recovery agent network.
By the Police granting an “owners request” for vehicle collection by an
approved recovery agent charges will be within the Insurers expectations.
QBE’s preferred agents provide a fixed price menu for vehicles on and off road up to
3.5 tonnes, an HGV pricing menu, no hidden extras and for all invoices in excess of
£500 photographic evidence is supplied to support the charges presented. Accident
recovery is provided throughout the UK and Europe through a network of over 500
recovery operators and average incident attendance time is only 30 minutes through
a 24 hour national freephone call centre.
QBE are willing to pay a fair price for recovery services BUT if reasonable charges
cannot be negotiated the vehicle owners or their insurers can insist on their statutory
rights to pay only the prescribed Sums and Charges under the “Road Traffic
Regulations Act 1984 & The Prescribed Sums and Charges Regulations 1989 SI
1989 No.744, 1993 No. 550.
The Police should accede to the vehicle owners request to choose their own
recovery operator even though some police authorities still choose not to do this.
Recovery operators will often try to claim within their recovery charges the following
additional charges and “sundry” items:
• Management Fees
• Winching
• Gloves and Reflective Jackets / Damaged Equipment
• Refreshments
• Vehicle cleaning charges / “added services” charges
Help QBE to ensure that the right level of charges is incurred by instructing the
approved recovery agents.
Ask for QBE’s leaflet for inclusion in your driver or cab “packs”.
9

12. ACCIDENT REPORTING / ASSESSMENT
A well defined “Claims Procedure Document” should be agreed with the motor
insurer for larger fleet risks and QBE actively promotes this activity and will
discuss and agree a definitive claims procedure document.
The QBE Motor Accident Report Form and Motor Theft Report Form are tailored to
capture all critical and relative information and as an alternative QBE can provide a
combined “Accident / Driver De-Brief Report Form” as a “Word” template that allows
the company transport manager to record details of discussions with drivers at
formal de-brief meetings and deal quickly with any training and/or disciplinary issues.
Drivers should never be allowed to dismiss criticism of their driving performance in
the course of their employment. It is extremely important to discuss and agree
exactly how preventable accidents could have been avoided and should be
avoided in the future. It is also considered good practice to make drivers fully
aware of the cost of the accidents that they cause. They should be made
accountable for their actions.
De-Brief meetings should follow ALL incidents of damage or injury at the earliest
opportunity (certainly within 72 hours of the incident) and be kept deliberately brief
beginning with an explanation of the events from the driver and what he feels that he
could have done to have avoided the incident altogether. General carelessness is a
main cause of accidents and defensive driving techniques may be of direct benefit to
both driver and company. Levels of concentration at the time of the incident is often
an influencing factor.
Review the completed claim form as early as possible before a de-brief
meeting. Ask yourself if the claim form reveals:
• Your employees lack of respect for other road users?
• A general lack of judgment?
• Lack of concentration?
• Excessive speed?
• Driving too close to the traffic ahead?
• Tiredness?
• A lack of vehicle maintenance?
• Other possible causes or contributory factors?
ASK THE DRIVER DIRECT QUESTIONS THAT ARE CONSIDERED RELEVANT
AND RECORD THE RESPONSES FOR THE PERSONNEL FILE PLUS, ANY
DISCIPLINARY ACTION AND DRIVER TRAINING OR RE-TRAINING
REQUIREMENTS
THE OBJECTIVE IS TO MAKE THE DRIVER REALISE THE NEGATIVE EFFECTS
OF AN AVOIDABLE ACCIDENT, TO ACCEPT RESPONSIBILITY AND TO
ENCOURAGE A MORE DEFENSIVE DRIVING APPROACH
10

13. PRO-ACTIVITY
QBE
The QBE Scene of Accident Information Form aides this process. It is
essential that innocent parties who have sustained loss or damage through
an accident caused by a company driver are contacted as quickly as possible
so that QBE can endeavour to control the cost of the claim, that is to offer a
vehicle repair service, replacement vehicle where necessary and to help the
innocent party to fully mitigate the loss. By providing a freephone number on
the scene of accident form QBE can respond quickly and effectively to calls
received. QBE will remind third parties that it is their duty to fully mitigate their
losses and that if they fail to take advantage of the services offered the cost
of their claims may be reduced.
Similarly a pro active approach to recognised third party injuries caused by
the company driver will assist with early opinion, prognosis and
recommendation for the appropriate treatment to accelerate the recovery
process. We are committed to the “rehabilitation” processes where they are
identified as being appropriate.
For QBE to be successful with this philosophy it is essential for all
accidents to be reported at the earliest opportunity and wherever
possible within 24 / 48 hours of the event.
FLEET OPERATOR / POLICYHOLDER
Driver de–brief. Companies should consider early implementation of driver
training and/or disciplinary measures following “fault” accidents or any breach
of the terms of employment.
Risk analysis / strategy. Constantly monitor performance and measure
against achievable targets. Refer to page 14 for commentary and
recommendations.
Driver training. Defensive driving techniques. There are a variety of
companies providing a range of training services if you do not employ your
own driver trainers. They will generally train on the following as primary
defensive driving issues:
• Reducing vehicle speed
• Maintaining a safe distance from the traffic ahead
• Awareness and Concentration techniques
• Progressive braking when slowing
• Hazard perception techniques
Driver development & review.
For instance:
• Bi-annual assessment on driving / loading / unloading
• Annual assessment of defensive driving techniques
11

14. PRO-ACTIVITY (Continued)
• Post accident training
• Annual staff reviews of performance against job description or role
statement.
• Competency measurement to ensure that the driver is able to fully
perform his role and to highlight all areas where training or disciplinary
action is required.
Reliable lines of communication with vehicle suppliers to ensure that ALL
relative maintenance bulletins are received from the vehicle manufacturers
and that ANY defect warnings are acted upon quickly.
Regular vehicle servicing with written schedules and maintenance records
for all vehicles and a strict policy of vehicle checks to ensure that schedules
are properly adhered to. Such measures can reduce the frequency of road
traffic accidents and vehicle breakdown.
Driving Performance Feedback & Analysis
Some transport operators employ the “How’s My Driving” Scheme which was
the first scheme of its type launched in 1995 and other feedback service
schemes have arisen since such as the “Well Driven” and “Drivercare”
schemes.
These schemes encourage independent feedback from the public on both
good and bad driving through a dedicated free phone number and 24 hour
communication centre.
Is this something that your company wishes to consider?
If drivers’ perform well consider rewarding them through incentive
schemes.
If they perform below the expected and agreed standards then identify
the reasons for the failings and act upon them. Follow the prescribed
disciplinary measures and ensure the every employee has the
opportunity to improve through learning, development & training.
12

15. DISCIPLINARY ACTION
If a driver knows that he is going to be questioned and made accountable for
any incident where he is partly or fully to blame he is more likely to exercise
greater care and increased awareness when driving company vehicles.
It is essential for all drivers to be held directly accountable for the loss, expense and
inconvenience to the company caused as a direct result of their failings in one or
more areas of their duties and remedial driver training is essential part of the
development process.
It may be considered prudent to provide all drivers with a list of conviction codes that
could form part of the driver cab pack / handbook.
The following is an EXAMPLE of a disciplinary policy that may be undertaken by the
company:
“A penalty point system similar to that used with your driving licence will now
be enforced with immediate effect. The mechanics of the process are as
follows:-
All points will accumulate over a 2 year period
First Blameworthy Incident 3 points
Second Blameworthy Incident 3 points
Third Blameworthy Incident 3 points
Forth Blameworthy Incident 3 points
Drivers totaling 12 points inside 2 years will automatically face dismissal as a
company driver. In certain circumstances and only subject to a vacancy being
available elsewhere within the business may the driver be considered for
alternative employment at the prevailing rate of pay for the job in question.
It will be possible for the manager in question to assign more than 3 points to
a driver for a single blameworthy accident, ie. more serious accidents where
the driver is deemed to be negligent with significant injuries and costs
involved. In such circumstances and depending on the gravity of the accident
the manager could decide to impost 6, 9 or 12 points for a single incident. Any
driver currently on a warning for poor driving performance should be
immediately notified of his or her points accrual.
Points will drop off a driver’s record at the end of each 2 year period from
when the points were first assigned.
Failure to stop at the scene of an accident and failure to report an accident
whether on the road or in any depot will result in an automatic 9 point penalty
being assigned to any driver proven guilty of such a breach of conduct.
13

16. DISCIPLINARY ACTION (Continued)
Drivers who feel unfairly treated by their manager will have the right to appeal
and this will be to an arbitration panel which will consist of:-
• Line manager
• Transport or training or disciplinary manager
• Company director
This panel should in all cases adjudge the merits of the appeal and give their
decision which will be final. The period in which an appeal may be made will
usually be up to 6 months from date of accident although subsequent
evidence which comes to light after this period may also be considered in any
appeal situation.”
Taking into account all business, union or legal implications relative to your particular
industry could a policy like this work for your business?
Companies should also consider charging back to the individual driver, depot or
division the incurred costs such as policy excess or rental/hire charges caused by
the loss of use of the vehicle in a fault accident.
Conversely, incentives should be considered for good driving performance over a
period by way of bonuses at driver, depot or division level to introduce an element of
competitiveness and reward for a job well done over a period of time.
IS A “DRIVER OF THE YEAR AWARD” APPROPRIATE FOR YOUR BUSINESS?
14

17. DRIVER TRAINING
The purpose of driver training is to improve the performance of all of the driver’s
duties and to enhance their own and the company image. Successful training relies
upon the trainer and the driver being committed to the processes.
Consider a “Driver Training Improvement Scheme” to target all employees over a
period of time. Those drivers who have had blameworthy accidents during the last 12
months should be given priority. This training should involve the driver giving up
some of his/her own time to complete the training process if necessary.
Distance learning can have a direct benefit that can involve computer based learning
through CD Rom software for instance, or DVD’s, videos, audio tapes or books.
Interactive online software is also now available from a range of businesses. See
recommended website addresses on Page 19 of this document.
Regular driving assessment is beneficial to both driver and employer to achieve a
reduction in accident frequency, severity of accidents. associated cost and to reduce
the human suffering and inconvenience caused by road traffic accidents.
Consideration should be given to a mix of pre-arranged assessments and
unannounced assessments, at least one each per year, dependant upon each
driver’s performance with the training assessor remaining with the driver for all or
part of the shift.
The driving assessor needs to ensure that drivers are actively observing hazards
and registering them consciously rather than looking and seeing a hazard but not
properly registering its presence and potential danger. This should form part of the
defensive driving/driver awareness training AND continual training development
should then include refresher training, remedial training and appraisal (at least one a
year forming part of the driver’s personnel file).
Consideration should be given to the employment of full or part time driver trainers if
they are not already employed (directly or indirectly) and affiliations with the likes of
R.O.S.P.A and the implementation of driver proficiency tests / defensive driving
techniques and accident awareness campaigns. R.O.S.P.A. also arranges courses
on accident investigation. You should provide all drivers with a handbook as a point
of reference and drivers should be instructed to record all of their training in a
personal development pack.
Fact: Human error is the cause of more than 90% of road traffic accidents in the UK
Fact: A Driver who has a “fault” accident is 5 times more likely to have another
accident in the next three years (information from Roadcraft - The police driving
manual.
Fact: Rear end shunts account for more than 30% of all UK road traffic accidents.
Look to reduce the frequency of major accident types such as rear end collisions,
Impact with immobile property, junction collisions and passenger falls / injury
(passenger carrying vehicles). Also look to implement driver opinion surveys
and suggestion schemes to involve them in the process of loss control. This is
another way of encouraging drivers in the whole process of loss control. Make them
feel an important part of the process. REMEMBER THAT IT IS A TEAM EFFORT
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18. RISK STRATEGY OPTIONS
• Form a risk management strategy
• Set the company policy
• Implement the initiatives throughout the company
• Establish “best practice” and share across the company
• Incorporate realistic targets and timescales to reduce the cost per claim, cost
per vehicle and frequency of loss. A realistic target may be to reduce the
claims cost by £150 per vehicle across a three year to five year period.
• Establish a route risk assessment – frequency of claim / accident type at the
same location / route revision where possible / hazard awareness for routes
that cannot be avoided. This can be particularly effective for passenger
carrying vehicle fleets. Make full use of GPS technology available to you.
• Identify weaknesses & trends in the claims experience. QBE will assist with
this through claims review processes.
• Consider the creation of a risk management panel. It is generally
considered good practice to continually monitor the progress of the
claims frequency and cost against the insurance policy record and
meet with Insurers regularly to discuss any areas of concern.
• Always look to identify the changes in the fleet claims experience, both
frequency and cost to measure the improvement (or deterioration) in the
performance compared to previous reviews or analysis and to identify areas
requiring improvement. QBE can assist with this process through specific risk
analysis reports.
• Of course, regular review meetings with drivers to discuss their accident
record and records of near misses is important to demonstrate that the
company policy is the subject of a continual focus and a regular review.
• Implement the solutions and monitor future progress. If the solutions
are not working review again, make the necessary changes and try
again. When you have established tried and trusted solutions use them
as part of the future risk management strategy.
• Set key performance indicators within a driver training and development
program such as:
o reduced frequency of incidents and/or average claims costs
o fuel efficiency ratings
o customer complaints
o attendance
o overall performance
Consider driver incentives, league tables and the like to encourage good
performance.
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19. SUMMARY
To ensure the successful implementation of a loss control programme and its
continuing success the following should be considered by the company and should
form part of the contractual terms of employment where appropriate:
• A well publicised statement of policy from senior management / directors
• Stringent reviews of employment applications, evidence of qualifications
and requisition of references prior to a decision on employment
• Examination of the original of the drivers licence
• A requirement for regular and detailed vehicle inspections by drivers and
by fleet engineers and managers including spot checks. Full written
records are essential.
• A comprehensive driver pack to be retained by the driver in the vehicle.
• A policy of driver accountability following a blameworthy incident to
include a driver de-brief.
• A continual focus on the company initiatives and regular reviews of the
company disciplines. Set key performance Indicators and measure.
• Regular and detailed review of the claims experience at driver, depot and
divisional levels. Set performance targets that are achievable to reduce
the road risk and company costs. Continually monitor the performance of
the risk and the targets that you are looking to achieve. This is an
ongoing process where you are searching for the “best practice” for your
company.
• A comprehensive driver review and training program.
• Pro Active approaches wherever possible, certainly to contain the cost of
an innocent parties claim by providing early contact with the motor Insurer
and implementing procedures to control repair costs, hire charges and
the cost of personal injury claims through rehabilitation to resolve injury
claims as quickly as possible.
• A well publicised disciplinary policy
• And above all ensure compliance with regulation and legislation relative
to your business. In particular the Road Traffic Act (RTA), Health & Safety
at Work Act 1974 (HASWA), Management of Health and Safety at Work
Regulations 1999 (MHSWR) and The Provision and Use of Work
Equipment Regulations 1998 (PUWER) directly relative to the operations
of a motor vehicle fleet where you have duties as the employer.
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20. COMMENT
Communication is all important. Performance should be continually measured and
pro active measures taken to achieve the desired results.
We hope that this guide on risk management is of some benefit to your business and
that you are able to recognise, control and reduce the losses caused by avoidable
incidents.
THE COMPANY PHILOSOPHY, CONTRACTS, HANDBOOKS ARE UP TO YOU
AND YOUR PARTICULAR ORGANISATION BUT WE WILL BE PLEASED TO
OFFER ANY FURTHER ASSISTANCE IN THIS RESPECT.
If you want to discuss any of the initiatives in this document please do not hesitate to
contact Paul Dunkley on 01245 272864 or Email: paul.dunkley@uk.qbe.com
A POSITIVE APPROACH AND CONTINUAL FOCUS WILL LEAD TO
POSITIVE RESULTS FOR YOUR BUSINESS!
REMEMBER:
MONITOR MANAGE
PROGRESS THE RISK
DISCUSS & IDENTIFY
IMPLEMENT FAILINGS
SOLUTIONS
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21. USEFUL WEBSITES
There are many very useful websites providing more detailed information and
recommendations on the management of occupational road risk some of which also
provide fact sheets and literature such as examples of driver handbooks. Here are
some of these sites that may be of direct benefit to your organisation.
ASSOCIATIONS
• The Royal Society for the Prevention of Accidents (ROSPA)
www.rospa.co.uk
• Road Haulage Association (RHA)
www.rha.net
• Freight Transport Association (FTA)
www.fta.co.uk
• RoadSafe
www.roadsafe.com
• Brake
www.brake.org.uk
• Occupational Road Safety Alliance
www.orsa.org.uk
• Institute of Advanced Motorists
www.iamfleet.com
DRIVER TRAINING
• Transfed (Bus & Coach Drivers)
www.transfed.org
• Interactive Driving Systems
www.roadrisk.net
• Drive & Survive
www.driveandsurvive.co.uk
• Pelican Driving Services
www.pelicandriving.com
GOVERNMENT DEPARTMENTS
• Department for Transport (DFT)
www.dft.gov.uk
• Driver Standards Agency
www.dsa.gov.uk
• Health & Safety Executive (HSE)
www.hse.gov.uk
• Driver & Vehicle Licencing Agency (DVLA)
www.dvla.gov.uk
• Vehicle & Operator Services Agency (VOSA)
www.vosa.gov.uk
• European Commission Road Safety Unit
www.europa.eu.int/comm/transport/index_en.html
• Safe & Fuel Efficient Driving (SAFED)
www.safed.org.uk
DISPOSABLE CAMERA COMPANIES
• Acci-Cam (Roadside Witness)
www.acci-cam.com
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22. NOTES
QBE Insurance (Europe) Limited is part of QBE European
Operations, a division of the QBE Insurance Group. QBE
Insurance (Europe) Limited is authorised and regulated by the MF/RMG
Financial Services Authority. Registered office Plantation 01/08
Place, 30 Fenchurch Street London EC3M 3BD. Registered
in England and Wales No. 1761561
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