PROPERLY implemented risk management policies can help fleets achieve a major reduction in their claims frequency and insurance costs. Insurance premium splitting, for example, makes individual cost centres within a group responsible for the actual driving performance of their drivers, by allocating the cost of insurance premiums in the right proportion to each area.

Indeed, VELO advises that the introduction of driver accountability, via a series of excesses chargeable to employees for each claim they make, helps focus minds on improving driving styles. When accidents do occur, fleets can achieve significant savings by implementing an accident management programme to control repair costs and minimise vehicle downtime.

A successful accident management policy will also provide the management information to limit further exposure to risk, by identifying high risk drivers and cars.