A grey area of fleet safety

Company directors allowing staff to drive their own cars on business are walking a health and safety tightrope and must face up to the single biggest risk facing their organisations.

That’s the overwhelming view of the UK fleet industry, but it seems that many companies are still failing to understand those risks and put in interventions to limit their exposure to potential civil and criminal legal proceedings emanating from own-car use on business travel – the so-called ‘grey fleet’.

With the recent implementation of the Corporate Manslaughter and Corporate Homicide Act in addition to existing legislation such as the Health and Safety at Work Act and the Management of Health and Safety at Work Regulations, it is vital, say fleet industry leaders, that all employers focus on reducing their ‘grey fleet’ risk exposure.

While, many businesses are actively checking the validity of employees’ driving licences, Jeremy Hay, managing director of the Essential Risk Consultancy, says: “Managing the ‘grey fleet’ is far more important and more complex than licence checking. Employers should remember that they are legally liable for the duty of care of their staff when driving irrespective of who owns the vehicle being driven,”

Responsibility

Last year a survey by fleet management provider Arval highlighted that responsibility for the so-called ‘grey fleet’ was often ‘overlooked and misunderstood’ with the vast majority of organisations failing to carry out risk assessments.

Vehicle documentation – MoT and servicing checks – business insurance, accident reporting and vehicles being fit for purpose were among areas of weakness identified in the report (RoadSafe: autumn/winter 2007).

Now, follow-up research has highlighted that the importance of managing the ‘grey fleet’ may be just starting to get through to businesses.

The ‘grey fleet’ management message may well have also been boosted by the plethora of recently launched initiatives by numerous organisations designed to reduce the corporate risk exposure of firms allowing staff to use their own vehicles on business trips (see panel opposite).

But, ING Car Lease says its survey of medium sized fleets revealed that only 30% of businesses said they took account of private vehicles in their risk policies.

Consequently, said Diarmuid Fahy, ING’s head of risk management, the hidden dangers posed by uninsured or poorly managed drivers that use their own cars for business is a timebomb waiting to blow up in bosses’ faces.

Blind spot

He said: “This blind spot the fleet industry has for private and cash allowance drivers is a real issue for businesses and one that could become a big problem as the new Corporate Manslaughter and Corporate Homicide Act makes its presence felt.

“Our experience highlights that the majority of medium sized business don’t understand their responsibilities under the new law, with even fewer taking practical steps to ensure they are minimising their exposure to the dangers posed by ‘grey fleets’.

“We want to see more companies treating cash-takers in exactly the same way as company car drivers. We are calling for a step change in culture where ‘grey fleets’ are treated in the same way as company cars.”

Follow-up research to the original scathing ‘grey fleet’ report – ‘The Grey Fleet – The origins, risks and impacts of non-company cars business driving in the UK’ – has revealed that 46% of the more than 500 fleet managers surveyed are reviewing their fleet duty of care; 22% have completed a review of which 9% have implemented changes.

The original research revealed that one in four vehicles being driven on business was a ‘grey fleet’ vehicle. But, 83% of businesses had no procedures in place to check that noncompany car were regularly maintained and 74% of businesses did not ask their employees for a valid MoT certificate for vehicles more than three years old.

However, the primary area of concern was own vehicles being insured for business use. More than half of businesses did not check if ‘grey fleet’ vehicles had business cover. But, some companies have responded as 6% more firms are now checking that drivers of non-company vehicles driven on business have the correct insurance.

In addition, 9% more fleets ask drivers of non-company vehicles to produce an MoT certificate and a similar number of respondents checked whether vehicles driven on company business were serviced regularly.

Jenny Powley, Arval director large corporate group, said: “Our original findings demonstrated that grey fleet vehicles are not subject to the same rigorous reporting and inspection procedures given to company cars so it is encouraging that our latest research has highlighted that the ‘grey fleet’ safety message we have taken to the market is starting to have an effect.’Grey fleet’ vehicles that are unsafe and not fit-for-purpose put employees and other road users at risk so are a big concern to us. On the back of our research we urge businesses to review their fleet duty of care, making our roads safer and reducing their own exposure to legal action through negligence and failing to meet duty of care obligations.

“It’s also important to remember that a safe well driven fleet is also likely to be more cost effective and less environmentally damaging.” ING is concerned that many smaller and medium sized fleets are managed on a part-time basis by accounts departments or administrators, who find it hard keeping up with the myriad of changes to tax and health and safety rules.

Mr Fahy said: “Running a fleet is no longer a job that can be done on a part-time basis. We’re now seeing so many changes to safety legislation, funding options and the tax regime that running even the smallest fleet is now a job for the professionals.

“Our survey has highlighted the nagging issue of risk and the smaller fleet which is, in our view, a problem that too many companies are sweeping under the carpet.”

“This is a serious matter and a frustrating issue as safety among the ‘grey fleet’ can be radically improved by implementing a few relatively simple, largely administrational systems.

“We have proven with several clients, both large and small, that disciplines such as regular licence checks, vehicle checks, accident monitoring and appropriate training can have a huge impact on a business’ risk profile.”

Firms offer solutions for ‘grey fleet’ management

They include:

• Active Risk Management has launched a new service that includes the checking and validation of driving licences, vehicle condition, business insurance, Vehicle Excise Duty and MoT to ensure that companies fully meet their duty of care obligations. Marketing director Keith Vincent said: “‘Grey fleet’ vehicles should always be carefully considered within any overall fleet risk assessment programme as they could prove to be a company’s Achilles’ Heal. It is incumbent on companies to show that their employees are using equipment that is fit for purpose to comply with all current legislation. For employees that drive for business, the employer will still be liable for the employee’s negligence in the event of a serious accident by virtue of vicarious liability, regardless of who owns the vehicle. So checking the condition of ‘grey fleet’ vehicles, especially as they may be physically seen by the company less often than company owned vehicles, is of vital importance if a company is to remain compliant with the law.”
• ALD Automotive won the Fleet Management Service Award in the 2008 Fleet World Honours for its Car Allowance Road Risk Solution (CARRS) designed to provide employers with practical and cost effective solutions for staff that drive on business. CARRS provides essential management information on mileage reporting, driving licence validation, MoT reminders, driver and vehicle details, service information, road tax renewals and insurance validation. The technology also generates 30-day reminders of renewals to information such as Vehicle Excise Duty and insurance. Chairman of the judging panel George Emmerson, who has managed fleets at IBM, NHBC and Black Horse Agencies, said: “CARRS addresses, very comprehensively, the risks associated with employees driving their own vehicles on company business.”
• All in One Leasing has launched a free comprehensive occupational road risk management online driver and vehicle audit programme as an integral part of its company car opt out solution to businesses. ‘Cash Allowance Duty of Care’ is designed to combat the raft of problems faced by companies in policing and managing staff who drive their own cars on business. Once an employee has signed up to their employer’s cash allowance scheme All in One Leasing’s duty of car programme kicks-in and creates a personalised driver record, which requires: The employee to undertake an online risk assessment with the results – ‘low’, ‘medium’ or ‘high’ risk – enabling managers to determine whether the driver requires any additional training; a driver licence check; the driver to scan in all vehiclerelated documentation including insurance certificate, Vehicle Excise Duty, MoT certificate if the car is over three-years-old, V5 certificate, and driving licence and vehicle service and maintenance records to be provided. Drivers who fail to provide all details - reminders are regularly sent to them and designated managers along with advance notice of expiry dates - could have their cash allowance withdrawn by their employer.
  Managing director Tony Williams said: “Companies have a legal duty of care requirement to manage the safety of all employees who drive on business. However, our conversations with professional fleet managers, finance directors and HR directors show there is a huge concern over their current inability to comply with legislation to manage opt out drivers because comprehensive one-stop shop solutions are not available.”
• Fleet Technique will inspect privatelyowned vehicles driven on company business nationwide at a customer’s location of choice. Vehicle inspectors will: conduct a visual check of all vehicles recommending any repairs or maintenance required; check to ensure vehicles are serviced and MoT’d and provide a written report on their findings.
  Managing director Aaron Brown said: “Our vehicle inspection service is about providing peace of mind to employers, who have a legal responsibility for all vehicles driven on company business irrespective of whether they are company or privately-owned. In the event of a privately-owned vehicle being involved in a crash while being driven on company business, accident investigators will want to see data, including vehicle maintenance and servicing records. Our inspection reports provide proof of a competent and responsible corporate attitude towards vehicle maintenance and ensure operational clarity for our customers surrounding ‘grey fleet’ vehicles with areas of concern which can be immediately tackled.”
• Inchcape Fleet Solutions has launched ‘Grey Matters’ designed to provide a onestop shop peace of mind solution that enables employers, in the event of a crash involving an own-car driver on business, to prove they have implemented health and safety measures in accordance with the law and recommended best practice. The ‘Grey Matters’ product portfolio includes: a full risk assessment of all staff driving their own cars on business, checks on vehicle MoT and service documentation, checks to ensure that business insurance is in place, driver licence checks against the DVLA database, checks to ensure a valid Road Fund Licence is in place and a company audit to highlight potential remedial solutions.
  Managing director Terry Bartlett said:
  “We would recommend that employers make it a condition of employment that staff expected to drive their own cars on business must provide valid vehicle-related documentation and undertake a risk assessment.
  “Employees that are not prepared to meet employer requests for information may have something to hide. “Our service provides our customers with a comprehensive audit trail. Reports provided are proof of a competent and responsible corporate attitude towards ‘grey fleet’ drivers and any areas of weakness will be highlighted immediately and can then be eradicated with the implementation of a comprehensive training programme.”

Why Davis Langdon axed its ‘grey fleet’

The UK-based organisation is a leading international project and cost consultancy, providing managed solutions for clients investing in infrastructure, property and construction – with environmental management a key focus as its works towards achieving international environmental standard ISO14001.

With company car drivers and own-car users travelling more than three million miles a year – many in high emission vehicles – the Energy Saving Trust was called in to provide advice. Among a raft of recommendations adopted by Davis Langdon is that up to 1,350 ‘grey fleet’ drivers now use public transport or a company paid for hire car instead of their own vehicle. Neil Ashton, the company’s head of procurement and supplier management, said the move was aimed at addressing the health and safety risks of atwork drivers.

He explained: “The duty of care risks faced by organisations allowing employees to use their own cars on business are so high that we decided to remove those risks completely. We believe we are among the first to take this step.”

Further information on the Energy Saving Trust’s Green Fleet Reviews at www.energysavingtrust.org.uk/fleet

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