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| SUBJECT: |
Accident Review and Cost Allocation |
| DATE ISSUED: |
July 1, 2000 |
| POLICY NO: |
ORM-96-8 |
| RATIONALE: |
To enhance responsibility in the operation of our fleet, drivers who are at-fault in accidents will
be identified for cost shifting of accident costs to their departments. |
| POLICY: |
- The circumstances of each accident will be reviewed by the Office of Risk Management (ORM). ORM will
determine if the University driver(s) were at fault, based on police reports, driver interviews, and any other
evidence present, and if the fault was less or more than 50%.
- Some cost of vehicle accidents will be shifted to a driver's department. See "Procedures for Cost Shifting of Vehicle Accidents" for further details.
- Appeals of ORM determinations can be made to the Vehicle Use Appeals Committee. Their findings shall be final. Appeal Of Accident Fault
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| DEFINITIONS: |
| PROCEDURE REFERENCE: |
Vehicle Use Appeals Committee |
| CROSS REFERENCE: |
Procedures for Cost Shifting of Vehicle Accidents |
| RESPONSIBLE ORGANIZATION: |
Office of Risk Management |
Procedures for Cost Shifting of Vehicle Accidents
When a University driver is at-fault in a vehicle accident, his/her accident record will be reviewed by the Office of Risk Management. The involved
department and the driver will be notifed of the accident and the driver's accident record.
The driving record will be specifically reviewed for the period from the date of accident and the previous 360
days for at-fault accidents. A points system will be used:
| Accident involving injury or damages greater than $5,000 |
Within 180 days of this accident |
4 points |
|
Within 360 days but more than 180 days before this accident |
3 points |
| Accident involving damages less than than or equal to $5,000 |
Within 180 days of this accident |
2 points |
|
Within 360 days but more than 180 days before this accident |
1 point |
| If impairment from alcohol (.08% BAC) and/or drugs is found |
3 points |
The driver's department will be assessed a portion of all damages arising from the accident based on one of the following formulae:
If the driver is less than 50% at fault for the present accident:
( Damages X ( Points X 5 / 100 ) ) / 2 subject to a $5,000 maximum.
Example: $5,000 damages, 10 points
( 5000 X ( 10 X 5 / 100 )) / 2 = ( 5000 X .5 ) / 2 = $1,250
If the driver is more than 50% at fault for the present accident:
( Damages X ( Points X 5 / 100 ) ) subject to a $10,000 maximum.
Example: $50,000 damages, 15 points
( 50000 X ( 15 X 5 / 100 )) = ( 50000 X .75 ) = $37,500 (maximum limit of $10,000 would apply).
This is a University-incurred liability assessment and is in addition to any contribution ("deductible") for damage to the University vehicle.
Any department head may request a driver attend a remedial driving course at any time.
The current (as of April 2001) deductible for "comprehensive" coverage is $50. The $500 deductible for
"collision" coverage established earlier this year is now changed to a sliding scale deductible:
| 1st chargeable accident | $100 |
| 2nd chargeable accident within 360 days* | $250 |
| 3rd chargeable accident within 360 days* | $500 |
*Within 360 days of the most recent accident.
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, The Trustees of Indiana
University