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Crash and learn

Insurance Risk & Professional 19 Jan 2012

NTI is the founder of National Truck Accident Research Centre (NTARC), and every two years the centre produces a research document, the NTI Major Accident Investigation Report, on truck crashes and their causes.

The latest study investigated 323 major crash incidents occurring in 2009 that involved trucks with a carrying capacity greater than five tonnes, at a combined cost of $44 million.

A new Advisory Board was appointed in 2011 to advise the NTARC. The All Roads Safety Advisory Board (ARSAB) is chaired by Associate Professor Kim Hassall of Melbourne University, the former Logistics Manager of Australia Post, and an in-demand consultant to business and government.

“Data underpins arguments and arguments eventually sway policy,” says Professor Hassall. “Very few people have access to the data that NTI can supply. We make it available – the good and the bad – to encourage change for a safer, more productive industry. “The data we get is assisting a safety evolution,” continues Professor Hassall.

“What’s more, the Board and the bi-annual research being funded by NTI is a good fit. They make their profi ts by people not having accidents. And reducing accident frequency and severity for all drivers is whatour Advisory Board is about, by pushing for better engineered roads, better facilities and better driver behaviour.

NTI is a substantial player covering 39% of the articulated vehicles (truck and trailer) market and insures about a quarter of the trucking market overall. The company’s National Manager of Industry Relations, Owen Driscoll, was author of the 2011 crash investigation report and also sits on the ARSAB board.

He says the aim of the new board is “to take the scope of the NTARC beyond analysis of truck accidents, to finding practical actions that can improve road safety and educate all drivers in how to share the roads with heavy vehicles”.

In addition to state governments, local councils, infrastructure bodies, road and transport authorities, advocacy groups, and truck fleet operators, Driscoll believes that brokers can also learn a lot from the NTARC research and the Advisory Board’s push to recognise and promote safe practices in the trucking industry.

“From a broker’s point of view, they need to know a lot more than other automotive categories about the specific risk of a trucking concern, as this will influence their client’s premium and the final offer of insurance,” says Driscoll. 

“Truck transport is a 24/7 business. It takes a lot of management and care, so it’s up to brokers to tell their clients to provide them with specific details, not just the number of vehicles, in order for the insurer to obtain a specific profile so their clients can be properly insured.

“Look for the positives and negatives: their driver management, safety protocols and checks. What roads do they mainly use? What days do they mostly drive, and what time of the day? All of these factors have a correlation with crash data.”

Even more important is the culture driving a trucking operation seeking insurance. Driscoll urges brokers to find out whether the operator is ensuring their drivers are appropriately trained, fit for duty and not being driven to deliver beyond acceptable deadlines.

How knowledgeable the drivers are and how rigorous the regular maintenance is should also be considered. “All this affects the final cost of insurance,” adds Driscoll.

The independent accreditation program ‘Truck Safe’ is an excellent example of a group trying to promote the benefits of good driver behaviour, driver management and fleet operation procedure. Driscoll is the Deputy Chair.

“Positive change that is sustainable is the aim, not a quick fix,” says Driscoll. “Attitudes need to change as well as safety checks, and they are. For instance, policy initiatives and driver management has seen fatigue-related serious truck crashes fall by 50% since the last study, and there’s no question the industry is becoming safer.

“If you’re going to run a safe business you’re going to get a lower premium than if it’s not quite so well managed, because the risk is being mitigated,” concludes Driscoll.

 

Keep on trucking

Key stats from the NTI’s 2011 Major Accident Investigation Report.

• THE COST IS RISING. Since the previous NTARC report two years ago, average financial loss per incident increased by 6.2% to $136,472.
• BIGGER IS SAFER. B-Doubles carry 46% of freight yet baccount for only 28% of serious truck crashes.
• SPEED KILLS SKILLS. Inappropriate speed for the conditions continues to be the major cause of heavy truck crashes at 31.8%, particularly when altering direction.
• MEAN STREETS. Queensland’s Bruce and Warrego Highways were the worst, with proportionally more incidents than all other major roads. The Hume Highway is the safest, with just 2.5% of incidents.
• MONDAY is the worst day of the week when 18.9% of all major crashes occur. Sunday was the safest. The 2011 report is available for free download. Visit: www.nti.com.au, click ‘About’, then ‘News and Media’, then ‘Major Accident Investigation Report’.

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