What is Duty of Care and Why is Managing Road Risk so Important for Business Fleets?
What is Duty of Care and Why is Managing Road Risk so Important for Business Fleets?
The facts
• Every week in the UK over 20 people are killed and 250 seriously injured in “at-work” road traffic
accidents (RoSPA). According to the government, “for the majority of people, the most dangerous
thing they do while at work is drive on the public highway” (HSE)
Legal responsibilities
• Under The Health and Safety at Work Act 1974, employers are instructed of their “duty to ensure so far as is reasonably practicable the health, safety and welfare at work of all employees”
Employer duty of care is reinforced by the corporate manslaughter offence under which companies can be prosecuted for deaths to drivers and other road users caused as a result of a work related journeys where negligence is proven
Corporate Social Responsibility (CSR)
• Road accidents result in awful human losses for families, friends and colleagues of drivers,
passengers and other road users and have a negative impact on the wider community
• Accidents, congestion and poor driving exacerbate the environmental impact of running fleets
Financial benefits
Better driving should lead to:
• Fewer accidents, with reduced repair costs and/or insurance premiums
• Lower fuel consumption
• Reduced maintenance costs, especially tyres and brakes
• Improved vehicle condition and performance at sale and/or reduced damage recharges
• Less vehicle rental expenditure
Typically fleets can expect a 15-20% reduction in fleet costs in the first year following the implementation of a risk management program.
Business advantages
Fewer accidents mean:
• Fewer lost business opportunities, deliveries, loads, customer complaints, etc.
• Less usage of temporary contract staff or overtime to cover staff absences
• Reduced risk of prosecution
• Less time spent on non-revenue generating activity e.g. accident related admin, investigation, etc
• Improved staff morale
• All of which also carry, albeit possibly less tangible, financial benefits
• Improved environmental and CSR record
• Potentially positive (and perhaps more importantly
avoidance of negative) PR
Arval specialises in fuel cards and contract hire.
Financial Markets (ECON 252) Insurance provides significant risk management to a broad public, and is an essential tool for promoting human welfare. By pooling large numbers of independent or low-correlated risks, insurance providers can minimize overall risk. The risk management is tailored to individual circumstances and reflects centuries of insurance industry experience with real risks and with moral hazard and selection bias issues. Probability theory and statistical tools help to explain how insurance companies use risk pooling to minimize overall risk. Innovation and government regulation have played important roles in the formation and oversight of insurance institutions. Complete course materials are available at the Open Yale Courses website: open.yale.edu This course was recorded in Spring 2008.
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