By: Harshita Thukral --
01 January, 2017
Every year, more than 20 percent of corporate fleet vehicles are involved in accidents. Negligent driver behavior is the main reason for 80 percent of these road accidents. Improving driver behavior through effective driver training programs can help organizations reduce their accident costs and improve fuel efficiency of their corporate fleet.
Studies reveal that on an average 21 percent of fleet vehicles meet with accidents each year. Since 2011, there has been an upward pressure on the accident costs. This is evident from the 6 percent Y-o-Y growth in accident-related repair costs. The key factors are rising labor and cost of spares, increased use of electric and hybrid vehicles, and increased deployment of in-vehicle technology (such as telematics devices and GPS).
As per a combined survey by NETS, NHTSA and OSHA, organizations incur costs of nearly $60 billion per year due to road accidents. For large companies, the cost per accident averages around $16,500. According to a survey conducted by PMA companies, poor driving behavior causes 90 percent of vehicle accidents. Research studies indicate that traffic-related accidents are major causes for on-the-job deaths. Over-speeding and aggressive driving are key reasons for rising employee accidents and increasing accident costs.
Also, a research study conducted by RoSPA and DoT indicates that employees driving for work are more prone to road accidents. Some of the research figures substantiate this finding as follows:
In view of safety and productivity, fleet procurement managers are now implementing driver assessment and training as important elements of their corporate fleet policy.
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