UNIVERSITY POLICY

SUBJECT:	FINANCIAL AFFAIRS		TITLE:	RISK MANAGEMENT AND RISK FINANCING FOR MOTOR POOL
CODING:	00-01-50-86:02	ADOPTED:	07/01/87		AMENDED:	05/31/01

I. PURPOSE

To establish a Risk Management program as it relates to the business use and handling of Fleet Automobile insurance claims and private vehicular use.

II. ACCOUNTABILITY

Under the Senior Vice President for Administration and Finance, the Vice President for Finance and Treasurer shall ensure compliance with this policy. The Director of Risk and Claims Management shall implement this policy.

III. REFERENCE

Transportation - Motor Vehicle Fleet 00-01-55-60:00

IV. POLICY

A.      Privately-owned Vehicles

For those faculty, employees or staff members who use their privately-owned (i.e. not UMDNJ-owned) vehicle on authorized UMDNJ business, their departmental supervisor will obtain and maintain annually updated photocopies of said faculty, employee or staff member’s drivers license, registration and insurance card. The individual’s personal automobile insurance policy applies to any and all damages or liabilities, which may be incurred.

B.       UMDNJ-owned Vehicles - Operators of University-owned vehicles shall be personally responsible for vehicles assigned to or operated by them.

1.       In the event of a loss being sustained by a UMDNJ vehicle, the Director of Risk and Claims Management or designee, will act as the sole authorized agent for the timely and accurate reporting and processing of Fleet Automobile liability and physical damage claims for the University.

2.       Risk and Claims Management will maintain written protocols with the following departments charged with day-to-day responsibility for use of UMDNJ vehicles:

a.       Transportation Services

b.       Emergency Medical Services - Camden

These protocols are to be mutually agreed upon by Risk and Claims Management and by the head of the departments referenced above and, thereafter, will be considered authorized and implemented under this policy. The protocols, however, will not deviate in any manner from the stated terms and provisions specifically outlined in this policy.

3.       Any accident involving a University-owned vehicle must be reported to the faculty or staff member(s)' immediate supervisor and Transportation Coordinator. A written accident report and Form SR-1 must be filled out by the driver and given to the immediate supervisor. It is the responsibility of the driver's immediate supervisor and Transportation Coordinator to check these reports for accuracy and completeness.

4.       UMDNJ drivers must notify the police immediately with respect to accidents, in order that a police report can be made on the scene, whenever possible. A copy of the police report must be obtained, by the faculty or staff member and, thereafter, submitted to the immediate supervisor and the Transportation Coordinator. A copy of this report must be provided to the Risk and Claims Management.

5.       Estimates to repair or replace the vehicle will be provided by the Transportation Coordinator (Section IV.B.) to Risk and Claims Management. With respect to damages amounting to less than $1,500 at least one estimate is required. Whenever the damages amount to $1,500 or more, estimates from at least two authorized vendors are required.

6.       The Fleet Manager will submit the motor vehicle accident Form, SR-1 form to Risk and Claims Management within 48 hours. The police report will be submitted by the Fleet Manager to Risk and Claims Management within 5 days of the accident date.

7.              The UMDNJ driver and the Fleet Manager will immediately notify Risk and Claims Management by telephone if a motor vehicle accident causes death or serious bodily injuries. The telephone number is (973)-972-6617 or (973)-972-6277.

8.       An "Accident Reporting Packet" will be maintained on all motor vehicles. The "Accident Reporting Packet" will be completed at the scene of the accident, along with the insurance carrier’s accident Form, SR-1 form and police report. These are available through Risk and Claims Management.

9.       The Director of Risk and Claims Management or designee will ensure that within 5 days, Form SR-1 will be forwarded to:

Bureau of Security Responsibility

N.J. Division of Motor Vehicles

25 Montgomery Street

Trenton, N.J. 08668

10.           Risk and Claims Management will coordinate relevant data with the pertinent UMDNJ department. The N.J. Department of Law and Public Safety in conjunction with Risk and Claims Management is responsible for the negotiation and recovery of all third party liens sought by the UMDNJ and, also, for all insurance recoveries.

11.           UMDNJ departments sustaining a loss for which the Risk and Claims Management achieves an insurance or third party recovery may be eligible for reimbursement in accordance with procedures established by Risk and Claims Management. Costs to repair UMDNJ fleet vehicles are recoverable, subject to the application of a deductible, from the University’s risk financing mechanism applicable to fleet vehicles subject to the terms and conditions of coverage as developed and maintained by Risk and Claims Management.

12.      Risk and Claims Management is responsible for the equitable allocation of program costs to UMDNJ cost centers.

13.      Failure of any faculty, staff member or employee to report an accident, no matter how minor, will result in an appropriate disciplinary action. It is the responsibility or any faculty or staff member who drives a UMDNJ vehicle to exercise such care as would normally be expected of a reasonable person. Damages done to any UMDNJ vehicle may leave that faculty or staff member liable for repayment of those damages and/or disciplinary action.

a.       Licensure and Defensive Driving Course: All drivers of University-owned or leased vehicles must submit a copy of their motor vehicle license to the Fleet Manager annually and must complete the University defensive driving course or an alternative safety course expressly approved by Risk and Claims Management, such as the Allsafe System, every three years, as scheduled by the Fleet Manager. Driver abstracts, obtained from the applicable state Division of Motor Vehicles, will be reviewed by the Fleet Manager pursuant to Transportation-Motor Vehicle Fleet policy, 00-01-55-60:00.

b.       Preventable/Non-Preventable Accidents: Risk and Claims Management is responsible for the monitoring of all Fleet automobile claims and for determining which accidents were reasonably preventable and those that were non-preventable. The National Safety Council criteria will be used as the guidelines for determining preventable and non-preventable accidents.

c.       Preventable Accidents: Those drivers responsible for preventable accidents will receive written notification from Risk and Claims Management. Copies of this written documentation will be directed to the driver's department head or immediate supervisor.

d.       Employment Requirement: All drivers of UMDNJ vehicles must be employees of the University. All drivers must have valid licensure and, in addition, are obligated to notify their department head or immediate supervisor immediately should their driver’s license or privileges be revoked.

e.       Employees must fully cooperate with Risk and Claims Management and the Attorney General’s office and/or designated legal counsel appointed to represent their interests. Failure to cooperate may nullify the University’s obligations to the employee. Any alteration of records or intentional misrepresentation or concealment of material facts by the employee may constitute a violation of this provision. Any violation of the preceding conditions will result in appropriate disciplinary action, as well.

14.      In the event a UMDNJ driver is involved in a second preventable accident within a one year time period, a mandatory Defensive Driving course (at the expense of that driver’s department) must be completed within 60 days of said accident. Arrangements for this training will be coordinated through Risk and Claims Management and the Fleet Manager. The noncompliant situations will be referred to Human Resources and the employee’s department head for appropriate disciplinary action. This action can be waived only with the approval of the Director of Risk and Claims Management.

A UMDNJ faculty or staff member responsible for a third preventable accident and/or responsible for an accident resulting from gross negligence and/or willful or criminal misconduct will be subject to appropriate disciplinary action, including curtailment of driving privileges and/or employment.

15.     The following forms referenced in this policy are available through Risk and Claims Management.

a.       Motor Vehicle Accident Report

b.       New Jersey Division of Motor Vehicles - Motor Vehicle Accident Report (SR-1)

c.       UMDNJ - Incident Report (Form 70)

By Direction of the President:

______________________________
Vice President Finance and Treasurer

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