FDs in the dark over grey fleet, says Mycompanyfleet

A new survey of UK finance directors has revealed that two thirds of companies have no policy on the age of private vehicles that can be driven on company business, while a fifth have no knowledge of whether they are insured for business purposes.

This lack of control over the ‘grey fleet’ - those private vehicles used for business purposes - increases the risk the company faces compared with newer company-owned cars, especially in the event of a serious accident.
There are now an estimated five million employees using their own cars on business, but with corporate manslaughter and other health and safety legislation now firmly established, companies need to ensure they have firm and detailed policies in place concerning their management.
“Formal guidelines need to be incorporated into fleet policy especially where business journeys are carried out in a private vehicle,” said Jon Tandy, business development manager at Mycompanyfleet, the fleet software arm of leading HR software supplier NorthgateArinso.
“We are seeing increasing levels of enquiries from companies concerned about controlling grey fleet costs and ensuring that there are adequate checks and balances in order to be legally compliant,” he added.
Mycompanyfleet’s answer to tackling the problem is its grey fleet software solution, Driver Self-Serve, which gives managers greater control over the grey fleet, as well as reducing administration, meeting duty of care and ensuring all legislative requirements are met.

Driver Self-Serve is designed to carry out a series of checks and validations of grey fleet drivers including whether they have adequate insurance, the relevant driving licence with permission to drive the vehicle they have, and to address the duty of care issues around the condition of grey fleet vehicle, which is potentially the Achilles heel for many companies.

The Driver Self-Serve system completely automates a number of issues such as business insurance, mileage and driver licence checks, as well as handling service reminders and other time-sensitive alerts , and it advises drivers and  fleet managers when a vehicle will need to be booked in for the next service to be carried out.

Grey fleet drivers log on to a dedicated Driver Self-Serve web portal and, in doing so, sign an agreement that they have adequate insurance, an up to date and valid driving licence and that they have had their vehicle serviced in accordance with the manufacturer’s approved service schedule, or with the company’s own bespoke servicing schedule.

The drivers’ line manager can then confirm that the driver has adequate cover to use their vehicle on company business and can then authorize payment of any appropriate mileage or motoring -related expenses.

Used in this way, the system provides the fleet manager with all of the information he needs to confirm that the vehicle and the driver meet duty of care requirements, and provides an easily followed audit trail.

 “Our Driver Self-Serve solution provides organisations with the means to effectively manage the risks associated with their grey fleet in a completely automated way and ensure all vehicles meet fitness for purpose and duty of care requirements,” said Jon Tandy.
“This includes checking and validating whether drivers have appropriate levels of business insurance appropriate for using their vehicle on company business, rather than social domestic and pleasure cover which clearly does not.

“Driver Self-Serve also validates business mileages and the condition and roadworthiness of vehicles being used for business purposes to ensure that the company remains legally complaint and meets its duty of care obligations, not just to its drivers but the public at large,” he said.

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