“It does not appear that organisations are moving quickly enough to provide LCV training”

That is one of the major conclusions of the Vauxhall-sponsored “Light Commercial Vehicle Trends 2004” report, written by Professor Peter Cooke of the Centre for Automotive Industries Management, Nottingham Business School, The Nottingham Trent University. The report also contains the findings of a survey based on 310 responses from LCV fleet operators operating more than 110,000 LCVs. Surprisingly, 41% of survey respondents claimed that the accident rate for LCVs on their fleet was better than that for company cars, with 29% claiming it was worse than that for cars and a similar number saying it was identical.

Given the discrepancy in accident rates it is surprising that only 5% of respondents said they had specific LCV insurance packages, with half of companies saying LCV cover was part of general business insurance and 39% saying it was included within business car cover. Only 3% of fleets self-insure. Despite increases in insurance premiums in recent years, the area is one of the least researched and understood areas of fleet management, and LCV management in particular. In many cases, LCV fleet insurance is tacked on to the end of the car fleet, or even on to the company’s general insurance rather than treated as a separate topic and risk.

With many companies claiming their LCV fleet has a better accident record than their company car fleet, the report questions whether such statistics are brought to the attention of the broker or the insurance company. As a result, the report urges fleets to compile a full operating profile of their LCVs and present it to their insurer. It adds: “Insurance brokers are rarely known to refuse premiums so it is the role of the LCV fleet manager or the finance department to challenge the quotations or proposals to establish what is the best package for the LCV fleet. Insurance purchase, with strategic risk management, needs to be pursued aggressively – and the results monitored continually.”

Driver training for LCV drivers is on the rise with 48% of organisations providing some form of training, compared with 43% a year ago. However, larger fleets dominate the provision of driver training with the report concluding that “any form of LCV driver training is lamentably low among smaller fleet operations – yet the liabilities are the same”. The report continues: “Given the increasing importance attached to duty of care issues and the interest of the Health and Safety Executive in business vehicles, it does not appear that organisations are moving quickly enough to provide LCV training. If the training is not provided voluntarily, there is always a possibility it may become compulsory.” Fleets deploy a wide range of driving licence checks, with 61% saying they carry out checks once a year, 19% twice a year and 11% randomly.

However, even though six in 10 fleets carry out annual checks, the report asks whether that is often enough – just 1% of fleets surveyed undertake monthly checks. The report says: “The growth in the national collection of speed cameras means the LCV driver is just as likely as the business car driver to collect penalty points – and they can rapidly reach the disqualification status. It is all too easy for a driver to seek not to inform the employer of accumulated points in the hope that they will be able to continue without further offence until the points, or disqualification, can be lifted.

“Driving licences need to be checked physically – both parts – on a regular basis. Quarterly licence checking may well be best practice in terms of countering the short-term disqualification periods. It is also important that the licences of other members of the family are checked too, particularly in the light of the growth of benefit-in-kind vans instead of cars.” The report also underlines the importance of checking the driving licences of new staff before employment is offered. In compiling the report businesses were asked for their corporate attitudes to parking and speeding offences by LCV drivers.

“While the LCV operating industry has matured rapidly, there remain many developments needed to keep it abreast with client demands”

While 74% of respondents would expect drivers to pay their parking fines, the remainder would appear to have a flexible policy and 12% of these would pay the fine depending on the circumstances. The report comments that, in reality, parking fines are increasingly becoming accepted as part of the cost of doing business and, to retain staff, the business will have to pay – eventually. Attitudes towards speeding offences are somewhat tighter, with 44% of respondents paying their own fine and 40% undergoing a disciplinary interview. No organisation admits to paying speeding fines, although 4% will review according to the circumstances.

More fleets have formal policies regarding LCVs and drug and alcohol abuse this year than 12 months ago. Only 12% of fleets admitted they had no policy in relation to alcohol abuse – all sub 500-vehicle fleets – compared with 21% in 2003. Meanwhile, 15% of companies admitted they had no drug-driving policy, with smaller fleets the main offenders. Surprisingly, given the amount of publicity in relation to the December 2003 introduction of a ban on the use of hand-held mobile phones while driving, 20% of fleets said they had no formal policy on phone use by LCV drivers. Once again it is the smaller fleets which typically do not have procedures in place.

The report comments: “Despite regular reports of accidents in which a mobile phone might have been involved, there is still a certain cavalier attitude towards their use. Of all the obvious issues to be led from the top, use of mobile phones while driving is one where senior management should set an example.” A strong corporate image is frequently acknowledged by companies as a key ingredient in them winning and retaining business. Often vans may be the only tangible evidence that the company exists which the client ever sees. Therefore, a clean vehicle, well-maintained and tidy inside and out, can be a strong image builder.

“The vehicle need not be the most up-to-date model on current plates, provided it is smart and clearly shows the driver takes pride in it. This will reflect on corporate image – and ultimately, business success,” says the report. Although 80% of companies say they have a formal policy on LCV condition, it is mainly smaller fleets which don’t. The report concludes that while the LCV operating industry has matured rapidly, there remain many developments required to keep it abreast with client requirements and demands.

Among those issues are greater attention to the driver and the driver’s well being. The report says: “This is more than just duty of care – it is increasingly being realised that the driver is an integral part of the business and they expect the same care and support given to business car users.” Further information about the report is available from the Vauxhall vans hotline: 0870 010 0651.