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Fleet Risk Control Guideline

By Nancy Bendickson, CSP, CDS, ARM, ALCM

Fleet safety is an essential element in the operation of every motor fleet, regardless of the size or type. Why bother with fleet safety? Motor vehicle accidents are the leading cause of occupational fatalities in the workplace; more than 20 million drivers are involved in accidents each year and more than $250 billion is spent annually on motor vehicle accidents.

Nearly every company has vehicles that help support business operations. The fleet can be as large as 1,000 trucks or as small as one. It can be made up of personal passenger vehicles used by sales staff or a fleet of delivery trucks. Motor fleets that do not have active loss prevention programs increase the likelihood of serious vehicle accidents, regulatory fines and social irresponsibility.

A fleet safety program consists of several elements:

  • management leadership;
  • driver selection and motor vehicle record (MVR) assessment;
  • accident recordkeeping, reporting and analysis;
  • driver training, communication and motivation;
  • vehicle selection, inspection and maintenance;
  • program evaluation.

Depending on the type of fleet, one program element may need more emphasis than another.

The use of personal cars for company business presents some special exposures. The company has little control over the maintenance or selection of these vehicles, and employees may not carry adequate insurance limits to protect the company in the event of a serious accident. The company should set minimum limits of acceptable level of insurance and periodically inspect personal cars used for company business.

This guideline is intended to provide information to help clients evaluate and improve their fleet safety programs. It is not inclusive of all fleet risk control issues. An overview of critical program elements is outlined in the guideline. As you read this guideline, consider whether your current fleet safety program makes the grade.

Management Leadership

Management must set guidelines for fleet operations and must make employees aware that safe operation of vehicles is critical. A safety policy for fleet operations should:

  • reflect management's philosophy concerning motor fleet safety;
  • outline the methods used to control vehicle loss;
  • address topics such as restraint systems and substance abuse;
  • prohibit truck drivers from carrying passengers who are not employees;
  • limit use of passenger vehicles by nonemployees;
  • address use of nonowned cars for company business;
  • discuss speed limitations;
  • ensure compliance with legislation;
  • assign responsibility for fleet safety;
  • establish an accountability system.

The nature and extent of the program will depend on the fleet size, number of drivers and fleet type. Proper leadership will provide the benefits of a profitable operation, safety of its drivers and an improved company image with the public.

Driver Selection

When an employment situation involves driving, management must:

  1. determine whether the driver has a valid driver's license;
  2. ensure that the employee is qualified to operate the specific type of vehicle;
  3. review the employee's knowledge of vehicle operation and safe driving techniques;
  4. review the driver's MVR;
  5. review past driving performance and work experience through previous employer reference checks.

If your fleet operates commercial motor vehicles, you are subject to U.S. Department of Transportation (DOT) and Federal Motor Carrier Safety regulations (FMCSR). FMCSR has minimum driver qualification criteria. These regulations apply in the following situations:

  • drivers of vehicles with a gross vehicle weight rating (GVWR) of 26,001 lb or more for intrastate operations or 10,001 lb or more for interstate operations;
  • operation of a passenger vehicle designed to transport more than 15 people, including the driver;
  • transportation of hazardous materials in a quantity requiring placarding under DOT's hazardous materials regulations.

Selecting & Assessing New Drivers

Before a new driver is hired, management should take several key steps.

  • Interview applicants and address their background and skills as related to driving performance.
  • Check references.
  • Set hiring standards for the number of acceptable accidents and the number of moving violations.
  • Review past driving record.
  • Verify that the applicant's license is proper and current.
  • Ensure that a medical exam is completed if warranted or required by law.
  • Conduct a written exam. Although DOT no longer requires this, the company can test driver's knowledge of defensive driving principles or DOT regulations.
  • Conduct a road test for truck and specialized vehicle drivers.
  • Require minimum driving experience for specific vehicles when necessary.

Assessing Current Drivers

A system should be in place to assess the ongoing performance of drivers. This program should include several key elements.

  • Review driving records periodically (annual basis).
  • Compare the number of avoidable/total accidents and moving violations against established standards.
  • Assess and authorize current employees who will operate pool vehicles.
  • Conduct periodic on-the-road observations to evaluate driver skills.

Contract Vehicles & Drivers

To ensure that drivers and vehicles hired on a contract basis meet established safety standards, a system should be in place to:

  • assess and authorize drivers prior to the use of company vehicles;
  • impose specific controls on both companies that provide contract vehicles or drivers and on individually hired drivers;
  • include safety requirements in contractual agreements;
  • record and jointly investigate all vehicle accidents with the contract company.

Drug & Alcohol Testing

If your company has drivers of commercial motor vehicles that exceed 26,001 lb or are designed to transport 16 or more passengers, including the driver, or a vehicle that transports hazardous materials, a drug and alcohol program must be implemented that meets Federal Highway Administration regulations. The program is composed of the following elements:

  • testing;
  • preemployment;
  • reasonable cause;
  • post-accident;
  • random;
  • record retention;
  • employee assistance program;
  • medical review officer.

A written policy is also required. A non-DOT drug and alcohol testing program is not acceptable for commercial motor vehicle drivers.

Orientation

All employees who will drive a vehicle should be given an orientation before operating the vehicle. Develop an initial general and job-specific orientation checklist to guide management. Follow up with new hires within 60 to 90 days to measure their knowledge of fleet risk control procedures.

MVR Assessment

The driving history of an applicant must be examined closely as a part of the screening process. This type of background check can provide useful information for the analysis of the applicant's safe driving ability. The applicant's history should be compared with company standards to determine whether the applicant's record is acceptable.

Review the MVR assessment for the following:

  • current number of points (where applicable);
  • suspensions or revocations (note and thoroughly discuss with the applicant as to their nature and cause);
  • any restrictions listed;
  • assurance that the license meets your requirements.

The following MVR criteria are suggested as a means to measure driver performance based on accident/violation information obtained from the MVR.

A driver is unacceptable if his/her accident/violation history in the past 3 years:

  • Includes one or more of the following violation convictions:
    • driving under the influence of alcohol or drugs;
    • hit-and-run incident;
    • failure to report an accident;
    • negligent homicide arising out of the use of a motor vehicle;
    • operating during a period of suspension or revocation;
    • using a motor vehicle for the commission of a felony;
    • operating a motor vehicle without the owner's authority;
    • permitting an unlicensed person to drive;
    • reckless driving;
  • Consists of any combination of preventable accidents and moving violations which total four.

The same criteria can be used to evaluate current drivers.

Accident Recordkeeping, Reporting & Analysis

The goal of every fleet safety program should be to eliminate all motor vehicle accidents. To achieve this, a system must be in place for reporting, recording and analyzing the facts surrounding vehicle accidents. All accidents should be investigated. Management must know the details of the accident so that appropriate corrective measures can be taken to prevent recurrence. Accident investigation identifies needs for:

  • driver training and/or refresher training;
  • improved driver selection procedures;
  • improved vehicle inspection and/or maintenance activities;
  • changes in traffic routes.

Motor vehicle accident recordkeeping procedures should have the following elements:

  • documentation of causes and corrective action;
  • management review to expedite corrective action and to outline a timetable for reports and investigation;
  • analysis of accidents to determine trends, recurring problems and the need for further control measures;
  • compliance with DOT requirements where necessary.

A permanent file should be created that contains pertinent information about the accident, including:

  • preliminary accident report from the driver;
  • copies of the accident report submitted to various agencies (e.g., insurance carrier, DOT);
  • accident investigation data;
  • police reports;
  • photos, witness statements or any other useful evaluation information.

An accident register must be maintained of DOT-recordable accidents. The definition of a DOT-recordable accident is "an occurrence involving a commercial motor vehicle on a public road in intrastate or interstate commerce, which results in: 1) a fatality; 2) injury to a person requiring immediate treatment away from the scene of the accident; or 3) disabling damage to a vehicle, requiring it to be towed."

The term "accident" does not include an occurrence, which involves boarding or alighting from a stationary vehicle or which involves only the loading or unloading of a vehicle's cargo. Also, not included is an occurrence involving the operation of a passenger car by a motor carrier, which is not transporting passengers for-hire or hazardous materials of a type or quantity, which requires the vehicle to be marked or placarded.

Implementation of accident reporting procedures is the responsibility of both the driver and management.

Driver Responsibility

As the first person at the accident scene, it is important that the driver initiate the information-gathering process as quickly and as thoroughly as possible. Drivers should have a "driver accident kit" in their vehicles and should be instructed in actions to take at the accident scene.

Management Responsibility

Management is responsible for obtaining the accident data from the driver through reporting forms and by verbal communication. It is important for management to determine the seriousness of the accident, especially if it involves injury or death to the driver, passengers or other parties.
A formal investigation should be performed as soon as possible to determine the underlying causes and corrective actions. Completed accident reports must be forwarded to the insurance carrier claims office and a copy must be sent to DOT where warranted.

Accident Classification

A system should be in place to review accidents for preventability. An accident review board consisting of driver and management representatives should meet regularly to evaluate the circumstances surrounding the accident and action taken by the driver. The board would determine whether the accident was "preventable" or "nonpreventable" in accordance with National Safety Council or American Trucking Association criteria.
The standard acceptable definition of a preventable accident is "any accident involving the vehicle unless properly parked that results in property damage or personal injury and in which the driver failed to do everything s/he reasonably could have done to prevent or avoid the accident."
A driver should understand and practice defensive driving principles to avoid preventable accidents. Defensive driving is driving to prevent accidents despite the incorrect actions of others, adverse driving conditions, vehicle or road condition, or driver's physical or mental state.

Driver Training, Communication, & Motivation

A driver training and motivation program increases the skills of drivers and orients the drivers into the company fleet safety policy, equipment and procedures. A communication program will help reinforce the importance of safe driving practices, awareness and attitudes.
A driver training system includes:

  • training and indoctrination into company safety policy and programs;
  • initial and refresher training on defensive, incident-free driving;
  • communications via memos, newsletters, videos and publication of accident investigation results;
  • motivation via a proactive recognition/awards program to recognize individual employees or groups whose safety performance is consistently superior.

New-Hire Training

A new hire needs general training in defensive driving and accident reporting/
investigation procedures. To be effective, the defensive driving training should be presented within 6 months of vehicle assignment. The new hire needs job-specific training to cover the following topics:

  • company equipment, products, maintenance; customer and public relations in emergency situations;
  • emergency procedures to follow in the case of accidental release of hazardous cargo;
  • PPE requirements and procedures relevant to the product delivered or the vehicle operated.

Ongoing Training

Ongoing or refresher training is useful for regular drivers to update information on operational changes, new routes, cargo, equipment or government regulations. Refresher training should be provided on a specified schedule. This training should cover job-specific issues and defensive driving.

Remedial training should be provided to drivers with substandard performance or transferred employees. The findings of accident investigation, accident history, driver observation or driver transfer to a new department or different type of equipment would warrant it.

Document all training and communication activities. Ensure that all drivers have participated in training and that they are receiving communication materials.

Vehicle Specification, Inspection, & Maintenance

Proper selection and maintenance of equipment are an important aspect of the fleet loss control program. Reduced operational costs, reduced accidents from vehicle defects and improved public opinion are the direct results of a comprehensive selection and maintenance program.

Vehicle Specification

Companies should have a policy for evaluating the safety of new, used or modified equipment. Specifications for each vehicle type should include:

  • restraint systems;
  • accessory equipment;
  • first-aid kits;
  • emergency equipment;
  • maintenance schedules;
  • insurance;
  • other safety features (such as airbags, and antilock brakes).

Vehicle Inspection & Maintenance

A documented program of pre-trip and post-trip vehicle inspection is a critical part of the loss control process. For commercial motor vehicles, these inspections are mandatory. The detection and correction of a vehicle defect reduces the risk of a mechanical condition contributing to an accident or to vehicle breakdown, which can result in death, injury or property damage as well as missed deliveries, bad publicity, customer dissatisfaction or on-the-road repair problems.

The requirements of a vehicle inspection and maintenance program must include:

  • pre- and post-trip inspections for trucks and specialized vehicles;
  • annual safety inspection (at a minimum) of the personal passenger fleet;
  • inspection and maintenance according to manufacturer recommendations;
  • defect reporting and follow-up procedures;
  • emergency repair procedures;
  • inspections necessary to comply with legal or consensus industry standards.

An ongoing preventive maintenance system with effective inspection procedures will help reduce the chance of costly vehicle breakdowns or accidents caused by vehicle defects.

Program Evaluation

A fleet loss control program helps to ensure that each element of the program is functioning properly. The audit also provides information on areas where the program needs to be updated due to changes in operations, regulations and/or experience. Audit program results are essential to the accountability system that underlies a management approach to fleet safety.
A fleet safety program audit should cover the following areas:

  • management leadership/policy;
  • driver qualification;
  • driver training;
  • driver supervision;
  • vehicle selection, inspection and maintenance;
  • routing and scheduling;
  • accident reporting, recording and analysis.

A formal audit should be performed annually. The audit results should be included as part of the performance appraisal process for groups and individual employees.

References

AISG, Engineering and Safety Service. An accident control program for motor vehicle fleets.

Continental Insurance Co. Model fleet loss control policy.

Keller, J.J. Transportation Safety Answer Manual.

North American Transportation Management Institute. Managing motor fleet safety programs: Training for the safety director.

U.S. Department of Transportation and Federal Highway Administration. Federal Motor Carrier Safety Regulations: Parts 325; 356-379; 382; 383; 385-387; 390-399; 40.

Nancy Bendickson, CSP, CDS, ARM, ALCM, is a corporate safety specialist at Cargill Inc. in Minneapolis, MN. She is also editor of TransActions.