Direct action leads to savings

Insurance premiums have been slashed by £20,000 on a high-mileage fleet that clocks up an average 1.4 million miles a year following the successful implementation of a comprehensive road risk management programme.

Family-run Direct Communications, of St Ives, Cambridgeshire, has slashed its comprehensive insurance premium for its fleet of 25 vans and 22 company cars from £60,000 in 2006/07 to £40,000 for 2007/08. The company has also seen its insurance excess cut in half from £500 to £250.

Since introducing The Journey - the A-Z strategic occupational risk management programme developed by DriveTech (UK), in October 2005 - Direct Communications has recorded just two at-fault crashes, both rearend shunts 14 months apart, with vehicles also involved in three non-fault incidents.

Proof

Fleet manager Gavin Bailey said: "The savings that the company is making in insurance premiums is proof that putting in place comprehensive risk management processes really do improve the safety of our staff and other road users."

The DriveTech (UK) programme involves a comprehensive assessment of existing risk management practices with all at-work drivers undergoing an online risk assessment followed by on-the-road driver training for all employees designated as 'high' risk, young drivers, employees who have been involved in accidents and those with points on their licence.

In addition, occasional drivers and those employees rated 'low' and 'medium' risk following risk assessment have attended road safety awareness workshops.

Prior to the programme's implementation Direct Communications, which installs and maintains in-store public address systems and satellite music systems on behalf of a host of high street names, and sister company Direct Communications Radio Services, which specialises in the supply of two-way radio systems, was suffering from at least one vehicle write-off a year and a number of other incidents.

Mr Bailey said: "The crashes not only cost the business financially but also resulted in a significant rise in fleet administration. In addition, to the upheaval to our business and the risk of injury to our employees, such incidents can impact on our customers."

The catalyst for the introduction of the DriveTech programme was two company vehicles being written-off, four others being involved in blameworthy incidents and a couple of other accidents in the first eight months of 2005.

Incidents

"Those incidents cost the company more than £60,000 in vehicle damage alone. With an increasing focus by the Government, police and Health and Safety Executive on reducing the number of road traffic incidents involving at-work drivers I decided action had to be taken to stem the accident toll," said Mr Bailey. "I am delighted at the results. The cost of the programme, which is ongoing, has more than been paid for by the insurance premium savings. Not only that but we have improved our business efficiency and effectiveness because vehicle downtime has been massively reduced and wear and tear on vehicles has also been cut as employees now have a smoother driving style and take more responsibility for the cars and vans."

As part of the risk management programme, Direct Communications has also introduced in-vehicle telematics systems to provide a raft of fleet management information including fuel use, vehicle speed and journey time. The technology also assists with journey planning and work scheduling.

Completed

Additionally, all company van drivers have completed the Department for Transport's Safe and Fuel Efficient Driving (SAFED) scheme.

Mr Bailey said: "All newly employed drivers undergo the programme as part of their introduction to the company. There are regular driving licence checks and refresher programmes in place."

A direct financial bonus for drivers has been cash savings because company rules dictate that they contribute the first £250 to the repair of a vehicle involved in a blameworthy accident. Direct Communications' leased alldiesel fleet, which are replaced on a three-year cycle clock-up 20,000 to 40,000 miles a year operating nationwide from the company's Cambridgeshire headquarters as well as depots in Scotland, Newcastle, Ellesmere Port, Chesterfield and Bristol.

Mr Bailey added: "It has been a huge commitment for a small company such as ourselves to make, but I believe that it has been worth it from both a financial and a moral standpoint. The initiative also means that, in the event of a serious incident, we have a full audit trail of vehicles and drivers so are as compliant with the law as we possibly can be."

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