Attention to small details can reap big benefits for risk managers. This
is not only true today but has its origins back before the Middle Ages. One
piece of folklore addresses the need in this way:
For want of a nail, the shoe was lost;
For want of a shoe, the horse was lost;
For want of a horse, the rider was lost;
For want of a rider, the battle was lost;
For want of a battle, the kingdom was lost!
In risk management, as in life, it is well known that a chain of events can
have a point of crisis that could magnify inattention to detail. Such is the
case with risk managers of commercial fleets that fail to focus on driving records,
physical exams, written exams, and driving tests for prospective drivers. Failure
to pay attention to the smallest details in this area can result in a horrible
loss. Let's look in more detail at these four critical areas of loss control.
Ordering And Interpreting The Driving Record
Ordering motor vehicle reports (MVRs) and comprehensive loss underwriting
exchange (CLUE) reports on all operator applicants is the single most important
auto loss control activity a company can take. Every state motor vehicle department
has the capability of providing driving information including traffic violations,
accidents, and driving suspensions. Running these reports will also assure the
employer that the applicant has the appropriate commercial driver's license
(CDL). The CLUE report is available as a result of an exchange through which
insurers contribute their own personal claim data and in turn access the data
of other insurers as needed.
Drivers with extensive histories of accidents and tickets obviously should
not be hired for positions that involve a significant amount of vehicle operation.
Also, the failure to obtain proper documentation on these checks can result
in heightened liability exposures from possible accidents. For common carriers,
these records normally have to be kept for 3 years.
It is also highly recommended that driving records be periodically ordered
for current employees. This is particularly important for drivers involved in
accidents in which they are partially or totally negligent. Taking the precaution
of checking driving records of prospective employees during the hiring process,
and checking the records of current employees as well, not only helps employers
avoid hiring bad drivers but also reassures employees of management's commitment
to safety.
Physical Qualifications/Physical Exam
Employers need to verify that their fleet operators are in good health and
fully capable of driving safely. Companies that are not motor carriers are not
required by law to conduct physical exams. However, motor carriers subject to
the Federal Motor Carrier Act are required to verify that their applicants pass
a medical examination before they are hired. In addition, they must successfully
pass the same exam every 2 years to continue driving.
An examination will focus on the following areas.
- Head and spinal injuries
- Seizures, including epilepsy
- Diabetes
- Nervous stomach
- Kidney disease
- Muscular disease
- Psychiatric or nervous disorder
- Vision
- Hearing
- Reflexes
- General condition of arms and legs
- Controlled substance testing
Individuals with any type of disability may still be eligible to drive under
the Americans With Disabilities Act (ADA); however, their disability must permit
them to perform the integral aspects of the job without endangering any persons
or property. The ADA mandates an employer's accommodation of the disability
unless it places an undue hardship on the employer.
Written Examination
Many employers, particularly motor carriers, also require written exams of
prospective drivers, although the exam is no longer required by federal regulations.
The purpose of the written exam is to give the employer another tool in its
evaluation of the ability of the applicant. The employer may reject an applicant
who performs poorly on the written exam and who also is marginal in other areas.
The exam also may be used for training purposes for existing employees.
Yard And Road Test Of Driving Skills
The yard test allows the employer to gauge an applicant's ability to park
in tight areas including parallel parking, maneuvering through tightly spaced
barricades, and backing up in restricted space such as a simulated loading area.
The goal is to perform these driving tasks without touching any obstructing
or peripheral objects. This test can be performed in a limited amount of time
and space and at low cost. If an applicant performs poorly here, there is no
need to proceed to the standard road test.
The goal of the road test is to properly evaluate an applicant's full range
of driving skills. The examiner performing the test should be very knowledgeable
about all aspects and features of the vehicle as well as being familiar with
the applicant's background and previous driving experience.
The road test for a truck driver should generally cover the following.
- Pre-trip inspection
- Placing the vehicle in motion
- Use of controls, including motor, clutch, transmission, brakes, steering,
lights, and emergency equipment
- Coupling and uncoupling
- Backing
- Parking in the city
- Parking on the road, including emergency parking
- Slowing and stopping
- Operating in heavy traffic
- Passing
- Turning
- Traffic signs and signals
- Handling intersections
- Grade crossings
- Courtesy and safety
- Speed
- General driving habits, including demeanor, alertness, physical stamina,
and patience
- Handling of freight
- Rules and regulations
The examiner should designate whether the applicant scored a satisfactory
or unsatisfactory mark. In addition, if the applicant passed the exam but needs
some training in a particular area, this should be designated on the road test
report. The report should also show what type of vehicle the applicant is qualified
to drive. Motor carriers are required to maintain records of these road tests,
which could prove helpful in the event of an accident and ensuing lawsuit involving
a particular driver.
Conclusion
The development and implementation of a systematic plan for evaluating prospective
drivers and all the attendant details will pay big benefits down the road. Just
as the "risk manager" for the King of Prussia during the Middle Ages proved
his worth by verifying that all horses were properly fitted with shoes before
battle, today's risk manager will do likewise in reviewing and verifying the
abilities and histories of all prospective drivers. By paying attention to the
details in this manner, the motor carrier's frequency and severity of losses
inevitably will improve.