Direct Communications drives to a safer future with £20,000 insurance premium saving

11 September 2007

Matt Rapier, Business Development Director at DriveTech (UK) with Gavin Bailey, Fleet Manager of Direct Communications Ltd
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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 Ltd, 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 rear-end shunts 14 months apart, with vehicles also involved in three non-fault incidents.

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 following the assessment, young drivers, employees who have been involved in collisions 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 crashes in the first eight months of 2005.

"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," 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. Also, 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.

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."

However, while Mr Bailey admits the concept was a 'tough sell' to some drivers, he added: "We have always maintained a dialogue with employees as to why we introduced the at-work driving programme and the benefits of it not just for the company but also for them as individuals. As a result, their support has been won over and they have found that the safe driving initiative has helped them in their private life as well as at work."

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 crash.

Direct Communications' leased all-diesel 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."

DriveTech (UK) managing director Jim Kirkwood said: "Direct Communications is direct proof that occupational road risk management programme bring financial, legal and moral benefits to companies.

"The cost of such programmes are recovered many times over not only through insurance premium savings but also through the reduced administration that crashes inevitably cause and through the productivity savings that can be obtained as a result of not having vehicles and staff unavailable."

EDITOR'S NOTES

DriveTech is the UK's leading provider of 'driving at work' risk management, driver assessment and driver training solutions.

DriveTech's goal is to reduce both an organisation's vehicle business costs and the personal risk for 'at work' drivers, by significantly improving driver ABC - attitude, behaviour and competence - therefore supporting driver safety and corporate 'duty of care' requirements.

DriveTech (UK) can be contacted at enquiries@drivetech.co.uk, telephone 01344 467881 or via its website at www.drivetech.co.uk