Commercial insurance broker McCarron Coates has warned coach, bus and other transport operators of 20 scenarios that it says can lead to the loss of an O-Licence.
The specialist has coined the phrase ‘Omageddon’ referring to a situation in which an O-Licence holder loses their licence following action by a Traffic Commissioner.
Such a ruling has severe consequences, including closure or a suspension of operations until the regulator is satisfied said operator is fit to hold a licence.
The risks are:
- Poor vehicle management
- Inadequate record keeping
- Repeated roadworthiness failures
- Laxness with regard to compliance
- Issues with vehicle emissions
- Shortcomings in inspection facilities
- Failures in driver defect reporting
- Poor wheel and tyre management
- Unacceptably high mechanical prohibition rates
- Too high an initial fail rate at MoT
- Manipulation of records or the creation of false records
- Failures in analysing tachograph data or accounting for mileage
- Lack of awareness of a transport manager’s duties
- Trying to operate a business under another company’s O-licence
- Use of untaxed vehicles
- Not reporting a change of maintenance provider to the Traffic Commissioner
- Failure to inspect vehicles at agreed intervals
- Breaching existing O-Licence conditions
- Driving without a card
- Actions that call ‘good repute’ into question.
McCarron Coates notes many of these factors act as early warning signs of deeper problems within a transport business, and argues that operators that identify and address such issues early are more likely to avoid regulatory escalation.
The company promotes its Accelerate product, developed in partnership with JMW Solicitors, which provides legal cover for investigations by the Traffic Commissioner, as well as cases involving employment tribunals, the Health and Safety Executive, DVSA, Trading Standards, and the police.
“Running a compliant business is the only way to safeguard an O-licence,” says Director Paul Coates. “Compliance also brings other advantages, including fewer accidents, better insurance premium control, and less likelihood of criminal prosecution. By seeking to avoid what we have described as Omageddon, a transport operator can actually become stronger, fitter and more profitable, running an operation with which clients will want to work and acquiring a good reputation – an invaluable asset.
“Operators can call upon professional expertise that will help them to turn their businesses around, through both the in-depth expertise we provide as a broker and the specialist legal help available through Accelerate. This combination is an optimal way to avoid the worst possible outcome for someone whose transport business is their livelihood.”
