Your LGIS Scheme has been successful on the back of strong risk management practice. Fleet risk (including privately used vehicles for Council purpose) accounts for over $700M in assets, and there are certainly areas for improvement in implementing risk management around fleet policy.
Many local governments are not as risk aware in this space as they could be, and may consider procurement policy and driver access control adequate, these processes do little to influence driver behaviour.
LGIS will be implementing a risk gap analysis program which will provide members with an overview and score of their fleet risk programs. The assessment will include a review of areas such as:
- Depot aggregation of assets
- Heavy equipment configuration – visibility/ergonomics/fire suppression
- Pre-start (including fatigue management)
- Fleet policy on purchase of vehicle (ANCAP 7 rating)
- Change in vehicle appetite (is there a move for more hybrid engines?)
- Opportunities for behaviour (driver education) training
- The use of engineered solutions – cameras/alarms /e-driver training modules.
A recent survey undertaken by WALGA for the High Occupancy Vehicle Survey Report, reported only 19 councils (of 33) had a fleet policy. Apart from potential physical loss, workers’ compensation, and loss of utility, a vehicle is a workplace for a large number of local government workers which equates to a WHS legislative exposure – highlighting the opportunity for work in this area.
The below table shows the historical experience of the motor insurance portfolio, from 2013 – 2020, indicating that members will benefit from risk management processes to reduce member-fault claims.