New safety rules for coaches and buses
Commercial insurance
4th January 2010
New requirements have been proposed to improve safety by the Department for Transport.
Applying to all lorry and bus drivers, new motorcyclists and any motorists planning to tow medium-sized trailers, the legislation is part of efforts to implement new requirements coming into force from the European Union in 2013. Relating to the training, testing, examination and licensing of drivers, the proposed rules will require all operators of medium-sized and large buses to confirm that they are medically fit to be behind the wheel and renew their licence every five years. These rules currently apply only to those over 45.
Commenting on the plans, Driving Standards Agency chief executive Rosemary Thew said: "We are already working closely with the groups and industries that will be affected by these new requirements." She called on all interested parties to respond to the consultation, which closes on February 5th 2010. Driver and Vehicle Licensing Agency chief executive Noel Shanahan emphasised that the "vast majority of drivers in the industry already ensure that they are fit to drive" and the rule changes would be introduced with a commitment to minimising their impact on operators.
These new regulations also stress the need to have in place an adequate level of insurance protection, according to Steve Price, coach and bus specialist at Giles Insurance Brokers Ltd.
"It is vital that coach and bus operators remain abreast of current developments in the industry and have effective insurance in place in case of a breach," he advised. "Companies seeking cover should select an insurer with knowledge and experience in the industry in order to ensure they have all policies required by law and any additional products that could provide protection for their business, employees and passengers."
A two per cent revenue increase in real terms was witnessed by the bus industry during 2008-09 to 85p per boarding, according to recent data from the Department for Transport, indicating that it is a growing sector. The latest statistics from the government also revealed that concessionary fare reimbursement to bus operators rose by 12 per cent over the year to £1.19 billion as a result of a national scheme introduced across England for older and disabled passengers.
The government is investing in the industry and recently unveiled funding worth £30 million to encourage and assist local authorities and bus operators in the purchase of low-carbon vehicles. The Green Bus Fund will help to fund the purchase of around 350 models by March 2012, preventing the release of an estimated 10,000 tonnes of carbon dioxide into the atmosphere and reducing costs for firms.
Companies operating coaches or buses should select an insurer that specialises in the industry and can respond to their specific needs. Giles' advisors have extensive experience in the market and have provide access to leading UK insurers and policies pertinent to the sector, including road risks, material damage, products liability, business interruption and employers liability cover.
