The loss history for a motor vehicle fleet is a good general indicator of the level of motor vehicle risk management, or good fortune, that an organisation has developed.
The rate or frequency of vehicle losses reflects the likelihood of the incidents occurring, and the average cost of these losses reflects the severity of these incidents.
|High frequency (>20% of fleet per annum) of motor vehicle losses.||Low frequency (<20% of fleet per annum) of motor vehicle losses.|
|High severity (>US$5k average cost) of motor vehicle losses||Low severity (<US$5k average cost) of motor vehicle losses|
|High frequency of driver at fault motor vehicle losses||Low frequency of driver at fault motor vehicle losses|
|No tracking / monitoring of motor fleet loss history at a management / organisational level||Well established tracking / monitoring of motor fleet loss history at a management / organisational level|
Establish tracking / monitoring of motor fleet loss history at a management / organisational level (i.e. for individual business units as well as the total organisation). As a start, key performance indicators to monitor are;
- Loss frequency (total number of losses per total number of vehicles in the fleet per annum).
- Average cost of loss (total cost of all losses divided by the total number of losses per annum).
- Driver at fault frequency (total number of driver at fault losses per total number of losses per annum).
- ‘Repeat offender’ losses (individual drivers with more than one loss over a rolling five-year period).
For higher levels of tracking / monitoring all of these performance indicators should also consider kilometres / miles driven.