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Vehicle Operation Risk Management

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Vehicle Operation Risk Management Best Practices & Tips on Implementing a Program for Your Agency January 23, 2007 Your Presenters Cathie Bigger-Smith, CSP, ARM, CPSI ... – PowerPoint PPT presentation

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Title: Vehicle Operation Risk Management


1
Vehicle Operation Risk Management
  • Best Practices Tips on Implementing
  • a Program for Your Agency
  • January 23, 2007

2
Your Presenters
  • Cathie Bigger-Smith, CSP, ARM, CPSI
  • Risk Control Manager, Bickmore Risk Services
  • Marcus Beverley, CPCU, AIC,
    ARM
  • Director of Risk
    Management, ABAG PLAN

3
Is your driver and vehicle risk management
program on the right road?
  • This session will
  • Define liability as it relates to City/Agency
    vehicle operations
  • Identify elements of successful programs to
    reduce the frequency and severity of vehicle
    losses
  • Help you put the best practices to use in your
    organization to improve the safety of your
    employees
  • Provide data and information to sell your case
    and justify resources

4
Are you or your City liable for
  • Accidents involving City-owned or leased
    vehicles?
  • Employees using personal vehicles on behalf of
    the City?
  • Personal use of City vehicles?
  • Accidents related to police pursuits?
  • Accidents involving a co-worker as passenger?

5
Basis for Legal Liability
  • Employment relationship with driver
  • Doctrine of respondeat superior
  • The City exercises some degree of control over
    the driver and the accident occurred in the
    course of employment.
  • Negligent hiring and retention
  • The City failed to exercise due care when hiring
    employees to drive (i.e. checking MVRs).

6
Basis for Legal Liability
  • Employment relationship with driver
  • Negligent entrustment or supervision
  • The City failed to take corrective action when it
    became or should have become aware of poor
    habits, tickets, or prior accidents
  • Negligent training
  • The City failed to provide appropriate documented
    training for the specific vehicle type

7
Basis for Legal Liability
  • Agency relationship with driver
  • Driver represents or acts on behalf of the City
    in carrying out duties, including
  • Elected officials
  • Board members
  • Volunteers
  • Contractors
  • Consultants

8
Basis for Legal Liability
  • Vehicle owner liability
  • Statutory
  • Vehicle owners are liable for damages caused by
    any permissive user
  • 15,000 for death or bodily injury of any one
    person, any one accident
  • 30,000 for all persons in any one accident
  • 5,000 for property damage in any one accident
  • Failure to maintain
  • Includes failure to conduct inspections that
    would prevent operation of vehicle with known
    defects
  • Vehicle driver liability
  • Civil
  • Potential liability is limitless

9
Avoiding or Minimizing Liability
  • Driver selection and management
  • Enforced vehicle use and operations policies
  • Insurance requirements for use of personal
    vehicles
  • Distracted driver controls
  • Vehicle maintenance and replacement programs
  • Vehicle selection and use review
  • (i.e. 15-passenger vans)

10
But the real reason for an effective driver and
vehicle management program is
11
(No Transcript)
12
ABAG PLAN Auto Liability Claims Frequency
13
ABAG Claims Cost
14
Cost to ABAG Members
15
Concerns of a Good Driver and Vehicle Risk
Management Program
  • Driver skills, qualifications, and performance
  • Equipment selection and maintenance
  • Use of loss trends and accident investigations to
    prevent reoccurrence
  • Identification and correction of problems before
    they lead to an accident
  • An accountability system to ensure the program
    works

16
ABAG PLAN Best Practices for Driver and Vehicle
Program Management
  • Driver Selection and Training Measures
  • 2-1-2 There is a written program in place that is
    actively utilized as the basis for driver
    selection and screening of employees and
    prospective employees for driving related duties.
  • 2-1-3 There is evidence that employees with
    negative Motor Vehicle Records (MVRs) activity as
    defined by ABAG PLAN standards are provided
    personnel counseling, training, rehabilitation,
    and/or are removed from driving responsibilities
    depending on the nature and seriousness of the
    activity on their MVRs or observed driving
    behavior.
  • 2-1-4 All employees who drive any vehicle on City
    business are enrolled in the DMV Employer Pull
    Notice (EPN) program and MVRs are reviewed to
    prevent negligent retention. Note Releases
    required for drivers whose license does not
    require participation in the EPN program.

17
ABAG PLAN Best Practices for Driver and Vehicle
Program Management
  • Vehicle Maintenance Measures
  • 2-1-6 Vehicles and records are maintained to meet
    standards and warranties relevant to the vehicles
    or equipment and to help defend negligence
    claims.
  • Vehicle Operations Measures
  • 2-1-8 The City has adopted a vehicle use policy
    detailing when and how City and personal vehicles
    may be used for City business.
  • 2-1-9 The City has adopted a cell phone or
    "distracted driver" policy and all vehicle
    accident investigations reflect any "distracted
    driver" implication as part of the root cause
    analysis.

18
ABAG Best PracticesReduce Accidents and
Minimize Liability
  • Vehicle accidents are the 1 cause of workplace
    fatalities
  • Your City is liable for the operation of its
    vehicles and its drivers
  • Most vehicle mishaps are due to driver error
  • Accidents that are not driver error are usually
    due to mechanical/maintenance failures or road
    conditions
  • Data increasingly suggests that distracted
    driving accounts for a significant number of
    accidents
  • Recent regulatory standards have been adopted to
    address vehicle and driver safety

19
Getting the Pieces in Place
20
Key Definitions
21
Commercial Drivers License
  • Needed to drive a commercial vehicle
  • Gross vehicle weight over 26,000 lbs
  • Designed, used, or maintained for carrying more
    than 10 passengers (including driver)
  • Tows a vehicle or trailer over 10,000 lbs.
  • Transports hazardous materials requiring placards
  • Tows any combination of vehicles or trailers
  • Has Transportation Security Administration and
    medical requirements

22
Starting with the BasicsLicense Requirements
  • Non-commercial Class A license
  • Required to tow travel trailers over 5 tons,
    5th wheel over 7.5 tons, or livestock trailers
  • Non-commercial Class B license
  • Required to operate a house trailer 40-45 feet
    (firefighter licenses and Class A holders are
    exempt)
  • Class C License
  • The rest of us

23
More definitions
  • Employer Pull Notice (EPN) program
  • Allows your organization to monitor DL records
    of employees who drive on your organizations
    behalf. Its benefits include
  • Improves public safety.
  • Determines if each driver has a valid DL.
  • Reveals problem drivers or driving behavior.
  • Helps minimize your liability.
  • All Class A B License holders must be enrolled

24
World Class Driver and Vehicle Management
Programs
  • Written vehicle safety rules and policies
    provided to all drivers including distracted
    driving
  • Consistently followed and documented driver
    selection, training, and monitoring procedures
  • Accident trending and tracking
  • Accident investigation
  • Established vehicle selection, maintenance, and
    replacement policies

ISO 90011994, ANSI Z15.1
25
Available Support
  • California Hands Free Law SB1613
  • ANSI Z15.1 Standard Safe Practices for Motor
    Vehicle Operations (adopted as OSHAs guideline
    enforceable under General Duty Clause)
  • Californias Employer Pull Notice program
  • Safety typically a management rights clause
    issue
  • Best practices commonly used in private sector
    for many years

26
Driver Selection and Vehicle Use Policy
  • What is the City/Town responsible for?
  • Operating, maintaining, storing equipment
  • Selecting and training responsible drivers
  • Compliance with federal, state, and local laws
  • Investigating accidents
  • Enforcing policy and rules
  • Minimizing need for distracted driving
  • Who can drive?
  • Licensed
  • Insurable
  • Skilled
  • Authorized

27
Policy Statement
  • Commitment
  • Accident reporting
  • Monitor, report, and evaluate vehicle accidents
  • Training
  • Must be consistent with your Human Resources
    Departments policies
  • (Sample in ABAG Risk Management Handbook)

28
Driver Selection, Placement and Training
  • Tools to evaluate driver qualifications for
    selection and placement
  • Initial and periodic MVR evaluation and review
  • Road testing
  • Behind the wheel driver training
  • Defensive driving
  • Accident reporting
  • Use of accident photo packets
  • Vehicle maintenance and inspections

29
How EPN Works
  • Enrolled employer gets a requester code
  • Code added to employees DL record
  • If an action/activity is one that is specified
    to be reported under the EPN program, the driver
    record is generated and mailed to the employer.
  • Convictions, failure to appear, accidents,
    license suspensions or revocations and any other
    actions taken against driving privilege
  • A good policy requires the employee to notify
    employer of DUI, suspension, or restriction of
    license, regardless of EPN status.

30
Evaluating Motor Vehicle Records
31
Acceptable MVR
  • No activity in last three years and no major
    convictions in the last five years
  • OR
  • No major convictions in the last five years and
    no more than
  • One at-fault accident in last three years
  • Two minor convictions in the last three years
  • One at-fault accident and one minor conviction in
    the last three years

32
Major Convictions
  • Driving under the influence of alcohol or drugs
  • Includes prescription drugs that bear the warning
    that operating machinery or a motor vehicle while
    using this drug is unsafe
  • Driving while impaired
  • Reckless driving, racing, or speed contest
  • Failure to report an accident
  • Making a false accident report

33
Major Convictions
  • Vehicular homicide or manslaughter
  • Attempting to evade a police officer
  • Driving with a suspended or revoked license
  • Speeding in excess of 25 mph more than the posted
    speed limit
  • Hit and run
  • Others as applicable

34
Minor Convictions
  • Speeding less than 25 mph over the posted speed
    limit
  • Running a stop sign or red light
  • Improper turn
  • Crossing a double-yellow line
  • Failure to wear a seatbelt
  • Failure to yield
  • Following too close
  • Others as applicable

35
Borderline MVR
  • No major convictions in the last three years and
  • One major conviction within the last five years
  • One at-fault accident and two minor convictions
  • Three minor convictions
  • Two at-fault accidents

36
Unacceptable
  • One or more major convictions in the last three
    years
  • Four or more minor convictions in the last three
    years
  • Three or more at-fault accidents in the last
    three years
  • Any combination of minor convictions and at-fault
    accidents totaling four or more

37
Establish and Enforce Vehicle Operations and
Safety Rules
  • Parking requirements
  • Personal use
  • Backing
  • Compliance with all state laws including seat
    belts
  • Pre-trip inspections
  • No non-employee riders?
  • Required shift inspection?
  • Use of cones?
  • Use of radios or cell phones

38
Reporting AccidentsJust the Facts
  • At the scene
  • First aid
  • Information from all Involved
  • Weather/road conditions
  • Complete description with diagram
  • Picture
  • Notify police if required
  • Internal investigation
  • Root cause leading to remedial action
  • Reporting to ABAG PLAN

39
Other Management Issues
  • Vehicle selection
  • Front and side airbags
  • Vehicle weight 2860-3740 lbs min
  • ABS Brakes
  • Vans and specialty vehicles
  • Maintenance
  • Less than 5 of accidents
  • Replacement
  • Vehicle age or mileage as guide

40
Vehicle Replacement
  • You know you need a new car when...
  • You pull over to let a fire truck go by, and it
    stops behind you.
  • You have to go to a repair center every thousand
    miles to get the duct tape replaced.
  • You accidentally drive into a junkyard, drive
    out, and get accused of stealing.
  • You get the blue book value by adding up a list
    of individual parts.
  • The only thing holding your bumper on is the
    "Bush/Quayle '88" sticker.
  • You return to your car and find someone broke in
    and left a hundred dollars and a new stereo.
  • Evil Knievel refuses a free lift.
  • The valet puts on a crash helmet and full-body
    armor before parking your car.

41
Vehicles should be equipped with
  • Accident reporting kit
  • Proof of Insurance or self insurance - VC 16020
    (4)
  • Spare tire and jack
  • First aid kit
  • Flashlight
  • Fire extinguisher
  • Flares/lighting/triangles
  • Wheel chocks
  • Operators manual

42
Inspections
  • Daily or at the beginning of each shift
  • Weekly
  • Annual

43
Maintenance
  • Routine scheduled
  • Mechanism for drivers to report problems
  • Documentation
  • Ensures timely service
  • Provides defense
  • Helps resale

44
How will you know if its working?
  • Fewer and less severe accidents
  • Mandatory participation in driver training and
    coaching
  • No one driving with a questionable MVR
  • Accident investigations dont just lay blame,
    they find causes and remedies
  • A supported, city-wide culture shift focused on
    stopping distracted driving
  • Records are current and limits adequate on
    employee personal insurance if they drive
    personal vehicles on City business.
  • Claim reports to ABAG PLAN or coverage pool are
    complete and timely

45
We're begging you...
  • Please complete your ABAG PLAN session
    evaluation. Let us know if you like the webinar
    format!
  • Complete it at http//surveys.bickmore.org/survey
    s/abag/eval0107/survey.htm
  • Your feedback helps us
  • Know what to change or improve
  • Make training more meaningful and effective
  • Add new topics where additional information is
    needed

46
To Include in Packet
  • PPT
  • EPN PULL Notice details
  • Referral to Website to complete the Distracted
    Driving questionnaire and answers
  • Adele Abrams Prof Safety Article ANSI/ASSE Z15.1
    A tool for Preventing Motor Vehicle Injuries
    and Minimizing Liability
  • NTSB 15 Passenger Van Alert
  • http//www.mercurynews.com/mld/mercurynews/news/14
    899407.htm
  • Model Policy or Best Practices?
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