Using Video Event Recorders to Reduce Claims and Workers Compensation

Michael Ferreira, President of Safegate Risk Consulting, a seasoned claims expert from New Jersey, discusses a case study of improving workers' comp loss experience with Video Event Recorders (VER). OVERVIEW A public passenger-transportation service company operates a fleet of fixed route buses, specialty vans for disabled and mentally-impaired citizens in a major metropolitan city.  The fleet operates 20 hours a day, seven days a week. The drivers are unionized and they tend to be transient.  The average employment duration is less than 5 years.  Training and re-training is constant. THE ISSUE From a total cost and exposure perspective, passenger liability was the focus of attention.  Workers compensation claims were delegated to a third party administrator and as long as frequency and severity rates remained in an acceptable range, not much attention was paid to them. To confront the automobile liability issues, the employer installed Video Event Recorders (VER) in the fleet. This system generates a video clip eight seconds before and eight seconds after the vehicle absorbs a certain G-force rating.  The video captures footage inside the vehicle, outside-front and outside-rear.  The concept is to modify the drivers behavior to operate the bus in a safe manner at all times.  UNINTENDED CONSEQUENCE While the VERs had a positive impact on the number of accidents the fleet suffered, it also reduced the frequency of workers compensation claims.  Many soft-tissue injuries were eliminated.  Drivers had been claiming injuries from causes such as "hard-stops" (avoiding a collision) to being attacked by emotionally disturbed passengers.  (The VER has a "panic" button for the driver to push). The employer received benefits beyond those originally assumed.  They included: 1-Reduction of overtime – reduction in need to staff for drivers that missed work.| 2-Elimination of part-time drivers that were on call to fill in when driver was out work. 3-Reduction in cost paid to third-party administrator to adjust claims.  Fewer claims equals less adjuster time. 4-Positive impact on workers compensation experience which led to reduction in workers compensation premium costs. CONCLUSION The use of technology to modify human behavior has intended and unintended consequences. The idea of having every move monitored may occasionally feel invasive, however, when it can be used to keep citizens safe, reduce costs and improve productivity, their use cannot be underestimated. Michael Ferreira  is the President of Safegate Risk Consulting, LLC. He has been in the insurance industry for many years and has expertise in brokerage, underwriting and claims. While in the brokerage industry, he was the client account executive for Walmart. He can be reached at: 917-767-9123 WC Calculator www.ReduceYourWorkersComp.com/calculator.php TD Calculator www.ReduceYourWorkersComp.com/transitional-duty-cost-calculator.php WC 101 www.ReduceYourWorkersComp.com/workers_comp.php Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel or other professionals before implementing any cost containment programs. ©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact In[email protected]