When a business applied to the DVSA to add another vehicle to its operator licence (O licence), it triggered an investigation by the DVSA and a Traffic Commissioner public inquiry, due to the business having previously been called to a public inquiry. This case study sets out how rradar and Rural Protect offered vital support, to the insured business, during this process.
Business Type: Farm and Haulage Company
Section of Cover: Company legal liability (CLL) and Directors and Officers (D&O)
Applicable Cover: Circumstance Investigation Costs Cover and Other Wrongful Acts Cover
Circumstance: A cattle farm and haulage company is investigated by the DVSA and Traffic Commissioner when the business applied to add another vehicle to its O licence.
Legal fees value: £15,000 – the policyholder was responsible for their excess of £2,500.
The scenario:
The insured company rears cattle for milking and meat and has contracts to collect milk from local producers and take to a depot/processing plant. As haulage contracts make up the bulk of the business, the business has a vehicle operator licence (O licence), which is required if goods vehicles are used in connection with a business. The company has a transport manager, which is a condition of an O licence and who must be qualified, with a Certificate of Professional Competence (CPC)
The business applied to the DVSA to add another vehicle to its O licence, which triggered an investigation by the DVSA. Usually, such requests do not automatically lead to an investigation, however, this business had previously been called to a Traffic Commissioner public inquiry and so the DVSA felt an investigation was appropriate. DVSA officers carried out a desktop audit and visited the site to check specifically on vehicle maintenance.
Following the investigation, the business and the transport manager were called to attend another Traffic Commissioner public inquiry. The Traffic Commissioner has the power to amend, suspend or revoke O licences. They can decide the transport manager is no longer of ‘good repute’ and be declared unfit to carry on in the role.
What happened?
The DVSA found that there was confusion over who had the contracts to maintain vehicles and a lack of record keeping. They queried if onsite facilities were sufficient for maintenance, had concerns about whether drivers were doing the appropriate checks to ensure they were fit to drive, and saw a lack of evidence that wheel checks and break testing had been performed.
Upon receiving a letter from the Office of the Traffic Commissioner calling them to a public inquiry, the insured business contacted Rural Protect’s legal partners, rradar, who supported the business by:
- help gather evidence and information for the public inquiry, including a witness statement
- the appointment of a barrister
- supporting the business at the public inquiry by helping it express remorse and explain what measures it had taken to enhance its compliance
The outcome:
Since the inquiry, the Traffic Commissioner’s Office has:
- asked the business to reduce the size of its fleet to make it easier for the business to get back on track in terms of compliance
- agreed to another audit in due course. If this audit proved satisfactory, no further action would be taken
Things to consider:
This case study indicates that businesses should ensure:
- sufficient time is dedicated to the transport manager role as compliance is a key responsibility of this position.
- detailed records are kept in relation to all business operations.
- they are always compliant with the terms of an O licence and any requirements placed on the transport manager.
- the Traffic Commissioner is notified immediately of any changes or issues relating to their O licence or transport manager.
Had the client not had a Rural Protect policy, they would have had to pay for legal advice and support at the public inquiry, which would have cost thousands of pounds.
If you would like to know more about Rural Protect and our partnership with rradar, call us on 01653 609090 or email enquiries@hbunderwriting.co.uk.
