← All stories

Are Your Clients’ Vehicles Fit for Purpose?

It is true to say that motor vehicles have a major influence on our society, and the insurance industry. Annually, over half of all new vehicle registrations are fleet vehicles and the company vehicle is an established feature of our corporate operations and culture.

It must not be forgotten that such opportunities come with responsibilities to ensure that adverse risks and the exposure to injury is reduced, including those obligations relating to Occupational Healthy & Safety (OHS) regulations. The safe & efficient operation of the vehicle and its ability to perform the task required – all at a cost the organisation can afford – must be also be high on the priority list of criterion to be addressed.

The more eco-friendly organisations are also now looking at how certain vehicles impact the environment and of course we cannot forget the carbon tax threat.

The organisation that implements a method to define the vehicle task requirements and then chooses a vehicle best equipped to meet those needs can deliver substantial financial returns to the organisation’s bottom line.

Identifying and analysing what the organisation needs from its vehicles is not a difficult process, it really can be quite straightforward. Making the right choice of vehicle will have a positive effect on the organisation’s bottom line by minimizing costs in maintenance and repairs over the vehicles’ entire service life, protecting the vehicles occupants, and improving resale values. Choosing a vehicle which costs less to repair after a collision may even deliver benefits in insurance costs for your clients, furthering the ‘whole of life’ cost saving of the vehicle.

The interesting thing is the same principles apply whether it’s a single family car, a fleet of vans performing courier work or the heavy motor fleets of the largest logistics operations in the country.

So, what are some of the areas your clients may need to look at when considering buying or replacing a vehicle?
• What sort of vehicle is required – heavy or light, sedan or commercial,
• Safety ratings
• Repair & maintenance costs
• Finance needs
• Who is going to drive the vehicle
• What is the vehicle required to do
• Where is the vehicle going to be used – metro, rural, long distance
• Does the vehicle carry freight

Most organisations would already have a number of vehicles under their charge and more often than not, the above points are not considered.

As the late Professor Julius Sumner Miller would say….Why is this so?

Vehicle choice is considered by many clients as a personal choice. Depending where vehicle tastes lie, there is Holden versus Ford, Australian cars versus European cars, American trucks versus European trucks versus Japanese trucks, cab over trucks versus conventional trucks, as stated earlier, personal choice.

So how does the responsible transport operator meet their obligations when it comes to selecting the most suitable vehicle?

The most logical starting point for transport operators is what is the vehicle going to be used for? Discussion with the staff member/s that will be responsible for the running and operation of the vehicle would be a good place to start.

Next, consider what specific characteristics or features the vehicle requires to perform the task. Are there any specific legal obligations or requirements?

Further considerations such as what safety features are required, ANCAP rating, ergonomic considerations and what the company culture and image reflect are all aspects often overlooked when vehicle selection is thrust upon the unsuspecting staff member.

Attention to the above areas will not only provide the organisation with a more reliable and cost effective fleet but also deliver in the meeting of the organisation’s corporate obligations under Occupational Health & Safety (OHS) regulations nationwide by minimising risks in the workplace.