Going green can cut company car exposure
16 November 2007
Companies which operate vehicle fleets are being urged by their insurers and brokers to go green in an effort to improve safety.
The past month has seen The UK Court of Appeal rule on a case which reinforced the fact that employers have a duty to ensure that any vehicles used by their employees are properly maintained and regularly inspected.
The ruling revolved around a case two years ago involving Mohammed Yaqoob, a partner in a taxi firm who was found guilty of manslaughter after one of the minibuses in his fleet overturned after its tyre burst, killing one of its passengers. The judge held that it was incumbent on all operators of minicabs and minibuses to exercise due care to see that their vehicles were frequently inspected and well-maintained.
According to Andy Hawkes, Director of Lloyd’s broker THB’s risk management operation, reinforcement of that ruling adds further pressure on bosses when it comes to the use of company vehicles.
“The issue of company cars has been the subject of ever greater legislation over the past several years. They are in fact a place of work under the Health & Safety Act and as such employers have a duty to ensure they are fit and proper.”
Bosses can under the law also face fines and criminal convictions if they allow staff to drive vehicles which are illegal and also allow them to drive a vehicle when prohibited by law to do so.
“The burden on bosses is immense and underwriters are now looking at how they can help their policyholders,” explains Hawkes. “They are now becoming more focused on risk management and looking at how they can work with their clients to reduce the threat of accidents.”
Interestingly, underwriters are keen for clients to go green.
“There has been an increasing amount of debate over the environmental issues and the need for companies to reduce their carbon footprints,” adds Hawkes. “This will involve vehicles which have lower emissions and driver training to ensure they are driving efficiently and therefore not using too much fuel.
“Research has found that the use of more environmentally friendly vehicles and the risk management training which aims to cut down on emissions also reduce accident levels and as such there is now a move by underwriters to look at how they can limit the exposure of their clients along with their carbon footprints.
“I would expect to see a growing trend from insurers both inside and outside of Lloyd’s to discuss with their policyholders the benefits of the measures which reduce the impact on the environment.”
Last updated on 16 Nov 2007
