Why a safe driving policy?

Safe driving is good business — it's about protecting your staff, and protecting your bottom line.

A safe driving policy can enhance your reputation, both internally and externally.

It's easy to set up and can save you money. No matter what size or type of company or organisation you are, even small safe driving initiatives can save lives and money.

Don't be put off!

This isn't a daunting task for your company. Or a big document to get through. Really!

We've made it easy for you to implement a safe driving policy. You'll even find a sample safe driving policy to refer to, or you can download a template (PDF, 38 KB).

Turn to the beginning of each section to get the quick facts, then read on if you need the detail.

What's in it for you?

To be blunt, you can save money and lives. You can also:

• enhance your organisation's reputation
• improve workplace morale and wellbeing
• comply with the law (see the Health and Safety in Employment Act 1992 and the ACC and employer responsibilities under the Injury Prevention, Rehabilitation and Compensation Act 2001 in Appendix A and Appendix B)
• reduce your company's overall environmental impact
• put your business on a preferred supplier list for organisations that will only contract from companies with safe driving policies or good environmental practices.

So, what exactly is a safe driving policy?

It's all about having systems and policies in place in your business that mean you:

• choose vehicles with a high safety rating
• provide driver education
• deal with driver tiredness and distraction, reduce speeding and promote use of safety belts and other features
• provide incentives to ensure safe driving.

Ultimately it's about protecting your staff and your bottom line.

Let's talk dollars — where the savings are made

Consider the potential savings through:

• lower insurance premiums
• lower crash repair bills
• lower maintenance costs (eg tyre wear)
• lower ACC levies and reduced liability for payments of first week compensation (see Appendix A )
• fewer sales missed, or fewer interruptions to service
• reduction in lost productivity
• less sick leave and temporary staff costs
• reduced payments to third parties
• lower fuel costs through travel planning and efficient driving.

In considering overall cost, don't overlook the savings that can be made on fuel bills by promoting better travel planning and more economical driving.

Why it's so important in the workplace

A safe driving policy helps you meet your obligations under the Health and Safety in Employment Act 1992. In many cases a vehicle is considered a place of work under the Act. ¹

Between 1985 and 1998, there were 433 work-related road fatalities. A further 1447 'bystanders' died as a result of some else's work-related road crash. ²

Work-related traffic crashes - including those involving commuters - are estimated to account for nearly a third of all work-related fatal injuries.

Between 2004 and 2006, around 3867 ACC claims were made because of work-related road injuries. ³

The facts - the costs to business

A survey⁴ of 85 New Zealand organisations taking part in a road safety workshop showed:

• on average, they had 33 crashes or collisions per year, involving one in four work vehicles
• the annual cost of motor fleet insurance claims averaged $57,915
• the annual hidden cost of motor fleet insurance claims (including vehicle down-time) averaged $121,286
• the average number of road injuries or fatalities was 10.

One company surveyed had damage costs of $3 million per year. Its hidden costs were about as much again, and its return on sales figure was 8 percent. This meant that just to pay for the $3 million in 'metal bashing' costs, it had to generate $75 million in revenues. Over four years, this equates to $12 million in bent metal, $24 million in total costs and $300 million in revenues to pay for it.

Insurance Council of New Zealand data shows that, during 2006, New Zealand businesses claimed $250 million in insurance due to commercial vehicle accidents.

 

1  Bronwen McNoe et al (2005) 'Work-related fatal traffic crashes in New Zealand 1985-1998', Journal of the New Zealand Medical Association, 118(1227).

2   McNoe et al (2005).

3   Injury Prevention Research Unit (2007) Work-related non-fatal traffic injuries in New Zealand: Analysis of a national claims database, IPRU, Dunedin.

4  Dr Will Murray (April 2007) Improving work-related road safety in New Zealand - a research report, Department of Labour, Wellington, pp 17 & 7.

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Last updated: 28 August 2007