MARCH/APRIL 2007
In 2005, the United States experienced 6.42 million road accidents, which resulted in 2.9 million injuries and more than 42,000 deaths and cost more than $230 billion in damages. More than two-thirds of crashes in the United States are actually the result of driver error. Speeding is the primary cause of 30 percent of all crashes; drunk driving is the primary cause of 40 percent of all road fatalities.
Driver error is preventable, and there are significant consequences to not keeping drivers with a record of repeated errors off the road. Drivers who have two or more accidents or other violations in a three-year period account for 50 percent of all violations, and they have an accident frequency rate that is at least 2.5 times higher than drivers with clear records.
The stakes are higher when such drivers are behind the wheel of a heavy truck—the kind used by the scrap industry. Only 4 percent of registered vehicles in the United States are heavy trucks, but they’re involved in 11 percent of all vehicle fatalities. It’s not because they spend more time on the road, either. Large trucks are involved in 2.4 deaths per 100 million vehicle miles traveled—a rate that’s more than 50 percent higher than that of all vehicles on the road. Statistically speaking, the heavier the truck, the higher the incidence of serious injury or fatality.
One strategy for keeping your firm and your drivers from being part of these statistics is to regularly review driver performance on and off the job.
Mastering MVRs
As an employer, you have the right to access your drivers’ motor vehicle records. Doing so will provide you with valuable information, such as whether the drivers have valid licenses, whether they have been in accidents, and whether they’ve been convicted of traffic violations or other offenses. This information, coupled with appropriate action, can protect your business from serious financial loss.
If one of your vehicles is involved in a crash, any lawsuit that might result will most likely explore the operator’s driving record and your internal procedures for ensuring good driving. The decision to litigate or negotiate a settlement—and a successful resolution of the case—can hinge on what the other party discovers. Look at it this way: In Case A, a driver involved in a crash has had three moving violations in the past five years and a conviction for driving under the influence of drugs or alcohol—none of which the company knew about because it had never checked his MVR. In Case B, the driver has had only one moving violation in five years, he received additional training because of it, and the company regularly reviews his MVR. Which company do you think is more likely to face a lawsuit?
Review a driver’s MVR at the time he or she is hired and at least once a year thereafter, documenting the relevant information in the employee’s files. You can obtain MVRs from the state Department of Motor Vehicles or from companies that collect the information for you. Have your human resources staff handle MVR requests, if possible, to ensure you comply with federal and state privacy regulations.
Establish written policies that set out the minimum acceptable MVR for those who operate company vehicles. A typical acceptable MVR should contain no major violations, such as alcohol- and drug-related offenses, reckless driving, driving with a suspended license, or any felony-related offenses. An MVR also should have no more than one moving violation in the last five years, such as a ticket for speeding, disobeying a traffic sign, or not wearing a seat belt. The policy should specify what action the company will take in response to an unacceptable MVR: additional training, suspension, or termination. Whatever policy you set, you must apply it consistently for it to succeed.
Monitoring drivers’ MVRs might keep bad drivers off the road, saving lives—and potentially saving money. Your insurance company uses MVRs as an underwriting tool, so having a proÂactive MVR review policy that ensures your drivers have clean records goes a long way in developing advantageous automobile premiums.
Fleet exposures are at the top of the list of catastrophic exposures to which the recycling industry is subject. Fleet safety is thus one of the most important components of a successful risk management program. Make sure your program measures up.
—Scott Brandi, senior vice president, RecycleGuard/Willis of New Hampshire Inc. (Portsmouth, N.H.)
Willis RecycleGuard has prepared this article for informational purposes only. It is not intended to provide legal advice. Readers should not rely on this document or act upon any of the information it contains without first consulting competent legal counsel.
In 2005, the United States experienced 6.42 million road accidents, which resulted in 2.9 million injuries and more than 42,000 deaths and cost more than $230 billion in damages. More than two-thirds of crashes in the United States are actually the result of driver error. Speeding is the primary cause of 30 percent of all crashes; drunk driving is the primary cause of 40 percent of all road fatalities.