To identify the key factors impacting the cost of insurance for commercial trucking operators, the Insurance Bureau of Canada (IBC) commissioned professional services firm, MNP, to conduct an extensive review of commercial truck driver training across the country.
“New commercial truck drivers who have not received adequate training are putting the safety of Canada’s roads and highways in jeopardy,” the IBC states. “MNP found drivers with less training and experience are more likely to be involved in collisions and make costly claims than drivers with more training and experience. Insurance claims related to commercial trucking accidents have been increasing rapidly in recent years.”
A call to action
The report, Commercial Trucking Insurance and Education, includes a call to action for governments across the country to update and improve training and enforcement standards. It includes a scan of Canadian and international jurisdictions for best practices, an in-depth review of the different schooling options available for truck drivers in Canada, the different regulatory operating environments, trends in insurance premiums and accident rate trends by severity, jurisdiction and vehicle class and driving record.
It found that truck drivers with less than three years of experience have a greater likelihood of being involved in a collision and heavy loads or dangerous goods tend to be more severe and have the potential for greater damage.
Enforcement inadequate
The report also reads like a primer for those trying to understand how premiums are arrived at. “Premiums for vehicles travelling outside of Canada are impacted by exposure to excessive jury verdicts in the United States – court verdicts where juries award plaintiffs exceptionally high amounts,” they write. “The enforcement of commercial truck regulations violations is inadequate,” they add, pointing out that mandatory entry level training is not yet the norm across the country. “Training quality varies by school; there needs to be oversight and standards need to be enforced.”
Recommendations in the report include mandating the use of telematics to provide feedback to drivers and adopting a graduated or progressive licensing system.
Association agrees with report
Notably, the Truck Training Schools Association of Ontario agrees with the report, saying it is impressed with the detail and the amount of research invested. “It substantially represents what we have experienced in training over the past several years,” agrees Philip Fletcher, president of that association. “Certain improvements can be made for the benefit of new drivers in the industry; we concur with the study on the shortfalls indicated.”
In short, the report states that entry level training programs in Canada are not designed to fully prepare drivers for operating heavy trucks in all conditions.
“The current pass/fail system does not create confidence among insurers,” they add. “Insufficient oversight of training programs has created the perception among insurers that students can simply purchase their credentials. For insurers to have confidence in the training, they require more assurance that training programs are being delivered properly.”
