1. DRIVER FATIGUE AND THE CAUSE OF ACCIDENTS
Tom Halliwell
CEO
Libra Insurance Brokers

2. RISK FACTORS IN THE FREIGHT INDUSTRY
UNINSURABLE RISKS
Global economic meltdown
Local economic meltdown
Weather conditions – droughts
Political climate – riots, strikes, public disorder
Competition – rates under pressure
Debtor default
The abovementioned risks needs to be managed in terms of
your company’s internal risk management program

3. INSURABLE RISKS
Accidents
Liabilities to third parties
Theft & hijack
Damage to cargo
Political riot
Spillage & pollution
Downtime following insured risks
Risk transfer (insurance) comes at a cost
Good risk management reduces cost of insurance
Your claims history will dictate cost of insurance
Understand your specific risk profile

4. CAUSES OF INSURANCE CLAIMS
Percentage of Rand value in claims paid
Own damage %
Hijack/theft %
Damage to third party property %
Fire %
Windscreen/other %

5. RISK ELEMENTS OF OWN DAMAGE
Percentage of Rand value in claims paid
Fatigue - 35%
Severe driving - 20%
Speeding - 18%
Texting - 15%
Third party cause - 9%
No safety belts - 3%

6. ACCUMULATION OF RISK Salary structure - Fatigue
High average kilometres - Fatigue
Night driving - Fatigue/Drowsiness
Driver discipline/driving hours - Fatigue
Over-speeding - Fatigue
Texting - Not focusing
Passengers on board - Not focusing

7. FLEET X CLAIMS VEHICLES
2012
2013
2014
2015 R R R R

8. FLEET X CLAIMS GOODS IN TRANSIT
09/ /2013 R
05/ /2014 R
12/ /2016 R

9. CASE STUDY CLAIMS ANALYSIS
New drivers were paid much less than senior drivers
All major accidents were made by new drivers
Majority of them exceeded the company’s speed limit policy
Majority of them violated the company’s drive times
Majority of them averaged high kilometres per month
They all had single vehicle accidents
The above are all factors which ultimately led to fatigue

10. CASE STUDY CLAIMS ANALYSIS
RISK MANAGEMENT PROGRAMME
Strict rules on over-speeding
All trucks grounded from 22:00 to 04:00
Salary structure changed on new drivers
Employment process upgraded
24/7 Monitoring by Route Management Services
COMBINED RESULTS AFTER RISK MANAGEMENT PROGRAMME
Claims loss ratio prior to Route Management programme – 235%
4 Month Claims loss ratio after Risk Management Programme – 42.3 %

11. VALUE OF PRO-ACTIVE RISK MANAGEMENT
24/7 Monitoring
Real-time interaction with drivers and transport owners
Prior to Risk Management Programme
Premium
Claims
Loss Ratio R R
77%
After Risk Management Programme
Premium
Claims
Loss Ratio R R
56%
Notes - Total number of fleets fitted with I-Cab 170
- Trucks fitted with I-Cab devices
- Loss Ratio Improvement 21%

12. UNDERSTAND FATIGUE BETTER
VIENNA PSYCHOMOTOR TEST
Perceiving information from one’s surroundings
Processing the information in the mind and decide how and when to act.
Reacting on your mind’s instruction, using one’s limbs
When fatigue/drowsiness sets in, these three critical human functions will be affected first and severely compromised …
and in most cases, with disastrous consequences

13. Thank you