Driver Incentives v Disincentives as Tools for Accident Reduction

Many fleets will support an accident reduction strategy with either driver incentive schemes or penalties for failing to meet new targets.  So just how effective are such measures in reducing claims and which approach works best?

A Policy for Dishonesty?

Incentives and disincentives can both have the effect of driving claims underground if they are too heavy-handed. By financially rewarding collision free driving you may encourage drivers to stop reporting small bumps. Drivers who face financial penalties for accident claims are arguably even more likely to withhold information.

Carrots and Sticks

The decision fleets must make is whether their drivers will be more likely to abide by culture change and act on the knowledge gained through training if there is a carrot in front of them or a stick behind. At RVM we believe carrots often have a greater influence on driver behaviour because they accentuate the positive but we also know that to be truly effective drivers need to understand why they are being incentivised. Once they grasp the business reasons and safety benefits of accident reduction they will be motivated by more than just the short term prize.

The Right Carrot

Like all incentives, driver rewards must be meaningful or they will simply be ignored. Popular incentives include cash bonuses, vouchers, eligibility for a vehicle upgrade or just recognition of good behaviour with the potential for a “driver of the year” badge of honour. In many cases, introducing an element of competition amongst employees can work extremely well and most fleets find that longer term goals are more successful and make it easier to measure improvements over time.

Act Now

Driver incentives not only help to set a pattern of positive behaviour, they also encourage employees to see improvement as a goal and to share their successes with one another. This in itself helps to perpetuate good driving principles. However, incentive schemes need to be designed to fit the fleet and whereas a leader table may work in a fleet where all drivers perform similar roles, other organisations may need a different system with rewards designed to match specific roles or achievements.

Click here if you need help designing an incentive scheme for your fleet?  

or Call RVM today on 0113224 8888 to discuss in more detail.

Is your fleet risk reducing?

Are you in this position yet..?

• Accident management is in place
• The drivers are being trained
• The on-line driver assessments are being completed
• Grey fleet is under control
• Licence checking company is operational
• Last year’s claims statistics are available
• Appointment in the diary with the FD to review next year’s insurance costs
• Fleet size is more or less the same as last year
• All road risk data has is available in one receptacle
• The board remains committed to reducing road risk

Is your fleet risk program working?

Now, what we need to look at is whether the program is working and whether fleet risk is reducing. The answers to these questions are more complex than you might imagine.

Points to consider…

• What information is available from whom and in what format?
• Who will have the responsibility of collating this data in such a way that useful conclusions can be drawn?
• When should this exercise take place given that the insurance renewal dates may different to the financial year end and outsourced services will have varying review dates?

Whilst some fleets are now in this position many fleets will recognise from the above statements that they are not yet there. In practice there is more than one way gauge the success or failure of a road risk program.

How to gauge the success, or failure, of your road risk program

The following list may represent some good clues as to how to gauge the success or failure of a road risk program:

• Are insurance costs rising
• Feedback from drivers shows that the safety culture is more evident than previous years
• Are there more high risk or fewer high risks being identified as a part of the assessment stage
• Is claims frequency higher or lower than last year
• Are overall costs associated with claims rising 
• Do fault claims represent a higher or lower proportion of last year’s claims  
• Is the nature of the fault claims more or less serious than last year
• How many injuries have been incurred (own driver and third party)
•  Do total losses pose a financial threat
• How many more penalty points have drivers incurred compared last year

 

Pause once a year to reflect

These are just some of the examples of ways in which the effectiveness of a road risk program can be measured.

Of course best practice would indicate that fleets should pause once a year to reflect on the answers to these questions before starting the process of constructing the following year’s road risk program. 

Take a new approach

The Full Circle risk management program from RVM Fleet Services represents an exciting new approach to the way Fleets consume risk services.

In answering the points raised above, Full Circle can offer:

• A truly integrated and bespoke program
• Transparent view of the effectiveness of the chosen program
• Guaranteed service delivery by personal risk managers direct to drivers

 

For more information about Full Circle, or any of our fleet services, please contact us on 0113 2248888.

Gallagher Heath (retail insurance division) intends to develop closer links with RVM Fleet Services to provide fleets with a new approach to road risk management.

After working together successfully to bring tailored and specialist solutions to some of the fleet clients of this prominent and progressive broker, RVM Fleet Services is pleased to be able to broaden the scope of its arrangements.

David Plowman, Head of Risk Management at Gallagher Heath (Retail Division) commented:

 “Gallagher Heath Risk Management offers an audit service to our clients in relation to motor fleet risk management systems; these usually highlight a number of areas where elements of the (RVM) Full Circle product can be utilised. We have worked in a joined up fashion on a number of cases in the past…. and…. I would like to go down the route of formally considering an agreement to introduce RVM on our fleet book of business”

In response, Diana Rose, MD of RVM Fleet Services commented:

 “Our partnership with Gallagher Heath represents an enlightened approach by a major broker towards managing fleet road risks.  The partnership is a perfect fit as Gallagher Heath offer the risk consultancy advice and can follow through by delivering the solution via RVM.  Strong logic draws us together through our mutual desire to reduce the cost and frequency of road traffic accidents."

Full Circle represents a truly integrated approach to Road Risk Management in the way it is constructed and delivered.  It is made up of the following five service options:

• Driver Profiling
• Licence Checking
• Grey Fleet Monitoring
• Accident Management
• Driver Training

For more information visit www.rvmfleetservices.co.uk or contact us on 01132248898.

The Sixth Of Our Frequently Asked Questions

Take a look below at the sixth of our frequently asked questions regarding online driver assessments.

Q. Why has my employer asked me to complete an on line driver assessment?

A. Your employer has a corporate and legal responsibility under the Health & Safety at Work Act 1974 to ensure (so far as is reasonably practical), the health and safety of all employees at work. Your employer has chosen to assess your exposure to risk and identify appropriate and relevant training in order to safeguard both you and the public at large.

The Fourth Of Our Frequently Asked Questions And Answers

Q. Why does MY employer not simply visually check my driving licence?

A. A check of a person’s physical driving licence relies on the information  provided, which may be out of date as opposed to being in “real time”. Employers need to be confident they hold the most up to date licence information at the time of checking, which is only available from the DVLA.  

To find out more about driver licence checks and much more about driver safety please visit http://www.rvmfleetservices.co.uk