Page 32 - Logistics News - September October 2023

FL E E T IN S UR A NC E

Making the case for drug and

alcohol testing in fleet insurance

By Rhys Evans, Managing Director at ALCO-Safe

If driving under the influence is a reason for insurers to reject claims for vehicle

accidents, can drug and alcohol testing programmes be used by businesses to
reduce cover premiums for their vehicle fleets?

nsurance companies are always looking for ways to are designed to improve road safety, including stricter
reduce their risk. One way to do this is by charging penalties for driving under the influence of alcohol or
I higher premiums to businesses that have a higher drugs.
risk of accidents. Any organisation with a large fleet
of delivery vehicles is a greater risk purely from a Severe legal and commercial consequences
numbers perspective and while the risk of driving under Liability for a road accident caused by an occupational
the influence is not currently a weighting factor when driver under the influence of alcohol or drugs will
calculating business insurance premiums, it should depend on the specific circumstances of the accident,
be. Workplace testing can reduce the risk of accidents but, in general, the driver can be held liable for the
caused by drivers who are under the influence and accident if found to be under the influence of alcohol
by regularly testing drivers for drugs and alcohol, or drugs. Additionally, the employer can be held liable
businesses can identify and remove drivers who are for the accident if they knew or should have known
a risk to themselves and others. This will naturally that the driver was under the influence of alcohol or
reduce the number of accidents that occur – leading drugs and failed to take steps to prevent the accident.
to enhanced overall fleet safety and efficiency. In turn, Furthermore, accidents caused by drivers under the
surely this should then translate to lower insurance influence can have significant business consequences.
premiums? These include financial losses due to liability for
damages, potential legal fees and increased insurance
Legislative context for workplace testing rates. Furthermore, the business’s reputation can
When considering commercial drivers, the Occupational also suffer, leading to customer loss, and productivity
Health and Safety Act requires employers to take may decline if a driver is injured or suspended. In this
all reasonable steps to ensure the safety of their regard, the business can be held legally liable for such
employees, which includes ensuring that employees accidents.
are not under the influence of alcohol or drugs
while working. The Road Traffic Act (RTA) defines From awareness to action: Practical risk
‘driving under the influence’ as having a blood alcohol mitigation
concentration (BAC) of 0.05 percent or more while To mitigate these risks (and avoid these costs)
prohibiting driving while under the influence of drugs businesses should have a strict workplace policy that
that impair a person’s ability to drive safely. The National clearly outlines their stance on driving and consuming
Road Traffic Act (NRTA) has a number of provisions that intoxicating substances. Employers must consistently

30 SEP T E MB E R/O CT O B E R 2023 www .l o g ist i csn e w s .c o .z a