Trucking Risk and Insurance Podcast

Conditional CVOR and Canadian ELD Mandate

February 12, 2021 Chris Harris, The Safety Dawg Season 1 Episode 50
Trucking Risk and Insurance Podcast
Conditional CVOR and Canadian ELD Mandate
Transcript

With that, as I said, we're going to try something new today. All right. Let's see if I can get my mic over here. And we are going to be talking a bow boat. If I can get this, there we go. Okay. Canadian ELD part two. This is part two of the Canadian ELD system. I will put a link. I should have put a link in the show notes to part one, but today we're going to be talking about the Canadian ELD system and I promise to make a video about exceptions. And so that's what this part is going to be about. And then we're going to get into Canadians, conditional C V O R S. All right. First of all, when we are talking about the Canadian ELD system, who and what ELD systems have been approved, if you are a Canadian carrier, by the way, and you are, you know, you're going to be regulated. You're a federally regulated carrier. So, you know, the new ELD rule is going to apply to you. Then you've got to check out this link here. This one here is a list of certified approved devices. And as you can see, there is nobody on there yet. Here we are. This is February the 12th, I think February the 12th and there's nobody on the list yet. So there are no devices approved. I had a carrier call me this week and ask, and he was so excited. He was, he says, you know, I just signed a new deal. I've got my ELD is going in. And I said, Oh, who's the carrier. And he mentioned an ELD supplier that I had never heard of. And that raised alarm bells in it for me, because if I've never heard of them, are they going to pay the money to get their device approved? And this is one of, one of the big differences between Canadian and the American rule is there is a third party that has an approval process. And I understand the cost$20,000 per device to get approved. So some companies are going to pay that money and others are going to say, well, the Canadian market just isn't big enough for us. So why should we, why should we do that? So be careful, this graphic I thought was pretty cool. Let me just step out of the way. So you can see that that is in the link below. I did put that in. I will put this link in the show notes after I'm off the air, I forgot to do that for you, but it is a list of approved carriers. So this device is pretty cool. Just to reiterate, reiterate the amount of devices that have been approved are none. Now I have had some conversations with some suppliers or been on some webinars and different suppliers said they are absolutely confident that they will meet the June 12th deadline. Yes, June the 12th is the deadline for Canadian ELD. If there's an extension who knows, there are some lobby groups that are trying very hard to lobby the government to have an extension because it is late in the game and nobody has been approved yet. However, as I say, there are several of the manufacturers that say the will have several of their devices approved. And I suspect these will be the larger companies that will have them approved. And especially the Canadian ELD suppliers. I'm not sure who all the Canadian manufacturers are, but they're certainly Isaac Geotab fleet complete big growth are four that come to mind that are Canadian. At least I believe they're all Canadian. And I think they will all meet the Canadian mandate by June the 12th. That's an opinion, not a fact. All right, so who needs a log? So the exemptions are, again, just like paper logs. If you're operating within the a hundred and 60th as the Crow flies. So draw a circle around your depo. That would be it. You got to return to your home terminal every day, of course, to begin your eight consecutive hours off duty and the company maintains, and this is the kicker. This is what a lot of companies don't understand. Yes, your drivers may not have to keep a log book, but the company maintains accurate hours of each day that the driver worked the cycle that the driver was on and how many hours on duty. So that has to be maintained. And then the other exemption, of course, is if you're not driving a commercial motor vehicle. So there are some other exemptions oil field and permits and stuff like that. So if you are operating under any of those, of course you would be exempt. So statutory exemptions is another way. One, this is an interesting one, the 30 day rental agreement. If you rent a truck, of course the government's not going to make you install an ELD in a short term rental. And the definition of short-term rental is 30 days or less. So if your truck breaks down and you need a short term rental from Ryder Penske, or many of the other rental companies, it's not a problem. You can rent the truck and you will be exempt and you run paper lucks all. Alright, of course, if the truck is built before 2000, it doesn't have a computer in it. So you are exempt as well. So those are the exemptions just real quick. I just wanted to cover that. So that's the Canadian ELD rule. Nobody is approved yet. It costs money to get approved. I think only the larger manufacturers are going to say that there's enough business here in Canada to spend that kind of money to get approval, because don't forget several of the manufacturers have more than one device. There's one manufacturers on their webinar this week. And they said they have five while they have more than five devices, but they're going to submit five to the Canadian government for or to the third party approval. So they're going to spend a hundred grand well, in order to get that back, of course, and all the money that they are investing, there's some huge differences between the Canadian ELD rule and the American ELD rule. So there's a lot of software and development that goes into that before they even can submit. So it's quite expensive. I suspect only the larger, more popular carriers or manufacturers of the LDS will do that. Alright, so conditional CVOR, let's talk about conditional CVORs. First of all, the insurance industry, one of my most popular podcasts was when I was talking about the hard insurance market. And nobody seems to be talking about the herd insurance market anymore. It's still hard. It's still flipping hard. If you've got a conditional CVOR, you just might be in trouble. There's several of the insurance companies have what's called filed rules and a filed rule for an insurance company is the rules that they submit to the government saying under these conditions, we will do this. So one of the typical filed rules that the talk about is we will cancel a policy midterm if this happens. And so the outline what those, this is our, one of the things that several of the insurance companies have made a file rule. And by the way, a file rule, they can't deviate from it. Once they filed it with the government and the government has accepted it, it becomes fact. And so if they say, as some companies have, we will not insure conditional rated companies. Then that insurance company can't insure you. And so if you have a conditional rated CVOR, sorry, conditional rated CBR, then that insurance company can't insure you. Therefore, when it comes to renewal time, they're going to say, non-renewed it doesn't matter about your losses. It doesn't matter a butcher past record and how good you are and how much money that insurance company may be making from you. If it's a file rule, they're going to deny renewal. So act on your conditional CVOR. Don't let things happen. What are the different ratings? Well for a CVOR, the different ratings. There's excellent. There is satisfactory satisfactory. You can only get satisfactory if you've been audited, if you're in good shape and you haven't been audit deejay, you you'll get satisfactory on audited, which is pretty cool. All right, then there's conditional. This is the one that we are talking about. Mike conditional truck. It's only in pink. My conditional truck is there is one more rating as well, but if you're conditional, you better do something about it. Unsatisfactory is the other one is the last one. And if you're on satisfactory, I don't know who in the expo going to insure you. And you've got MTO all over your back. All right. So you're just going to blow yourself up anyways. There's the ratings. All right. Excellent satisfactory, conditional satisfactory on audited and unsatisfactory. So how do you get those things? A conditional rating, if you're less than a hundred percent on your OVR overall violation rate, if you're less than a hundred, but greater than 70, you will be rated conditional. The other way to get a conditional rating is to fail an audit. So if you fail a facility audit, you're going to be reading conditional, as long as you are. If you're less than 100%, if you're over 100%, you go to unsatisfactory, all right? And there's a bunch of other intervention levels starting at 35%, 50%, 70, 80 in 100, but we're not going to talk about that. So greater than suddenly, less than 100, you will be conditional. You've got to be conditional. You're going to be conditionally rated for a minimum for a minimum of six months. So this is huge. If you fail an audit, you can't ask for a reaudit for at least six months. If you go over the 70%, even if it's just for a very short time and you get below 70, you're going to be conditional for six months. It was a matter of fact, if you go over 70, you've got to get it below 60% before they will consider lowering the rating. So once you go over 70, you're going to be there. Then you've got to get it down below 60. And the minimum period there is going to be six months that you've got to. Once you've gone, conditional, you're going to have that reading for six months. And before they consider reducing it to satisfactory on audited, then you have to get down below 60 in the past will have been at least six months since you went conditional. If that all makes sense, if it doesn't reach out and I will cover this again for you. All right, so fail a lot. Why did you fail the audit? The only way to get rid of conditional because of a failed audit is to get re audited. And every time you get audited, of course, you quite likely are going to get some tickets. So it's going to cost you money in order to get re audited. And then of course, I would hope that you would call a safety professional in to do a mock audit, help you get prepared for an MTU audit before you request the audit. And by the way, something new, I haven't heard this officially yet, but I assisted a company recently with a remote audit was interesting, was a voluntary audit. They had requested an audit from MTO. Their CVOR is down below 10%, but they were conditional and their insurance company was all over them. And the officer did this whole thing remotely. Haven't got the results yet. That's how new it was. But I have not heard of this happening before. I have heard of ASRA alternative safety risk assessment. And maybe this is the outpouring of that. That was a beta test. So anyways, remote audits are starting to happen. I don't know if they're just voluntary yet, or if they are going to be full fledged facility audits happening remotely, but interesting in these COVID times, MTO is also adopting and good for them. All right. So to pass an audit, you, there are different ratings. If you've been audited, excellent is when you are really, really good. And of course you can just pass or you can fail. All right. So what is it? If you pass you are whoops, wrong symbol. They're greater than 70, or sorry, greater than 80% on the overall audit score. And in each of the profiles you scored greater than 70. So each profile on there's three profiles telling you what the RNs sec, but there are three profiles. You've got to get them greater than 70. And the overall audit score has to be 80 or greater. All right? So that's an excellent rating. If you just want to pass a pass is the overall audit score is 55% or greater. And none of the three profiles are less than 50. So there's three profiles. You got a score 50 or better on each of those. And the overall combined score is greater than 55. That's a pass. Awesome. That's all you really want. But below 55 or any of the profiles below 50, and you failed, and of course you don't want to fail. So please pay attention, get somebody, get a safety consultant in there's many good ones out there that can help you. And of course I would be available to help you, but you have to analyze why did you fail the audit? So if you fail the first audit, get the audit report. There is a report when the officer has finished doing the audit, they sit you down and they go through the audit results with you. And then they give you a copy of the written report. Get that written report out. It's going to identify the errors and then get somebody to get a safety consultant in to help you. If you don't have the skills in house, some of you do have the skills in house, but of course, if you fail the first audit, if you haven't made some major changes, why would you go through a second one without getting some assistance? All right. So get the results. The three profiles, what are they? The first one is vehicle maintenance, right? You've got, there's a way to set your vehicle maintenance program up. And then the documentation and everything. That's what has to go into the first of the profiles. All right, then there's your hours of service profile. You've got to keep track of the hours. If you are required to have log books. As I said in the beginning of this, the exemptions, if you're exempt, you still need to be tracking the drivers hours and cycles and in the on-duty component. All right. If you are required to have log books, of course, a lot of you are running ELD, but you've gotta be monitoring them. And then the third profile is qualifications records and reporting to put that into layman's terms, driver files and what needs to be in a driver file. So that's what you need vehicle maintenance in vehicle maintenance. Just to let you elaborate a little bit on that, you gotta get the CVIRs commercial vehicle inspection reports in there. And of course, if there was any work orders or repairs needed, because of those things, get those into the file as well. And I would attach them right to the CVOR. And then you need a PM statement of preventative maintenance statement, and then you need to have your work orders or your invoices proving that you were adhering to your PM statement. All right? And then you've got to keep all those records for 24 months. So hours of service, you've got to keep all the records, whether they are logged books, all the supporting documents, such as GPS records, fuel receipts, hotel, receipts, whatever it is, payroll records, alright, all that kind of stuff for qualifications records and reporting. Just to elaborate, you've got to have the driver abstracts. You've got to have the conviction records. If your driver gets a ticket, you better know about it and document it. And this is also the ticket. When I'm talking about tickets, sorry, when I'm talking about tickets, it's not just the ticket in the truck. You better know about what the driver is doing in the personal vehicle, because that could make them uninsurable. You need to know that crashes. You need to have that in the truck, in the driver file as well. And lastly, just to wrap this up, I mean, rambling on here for 20 minutes. All right. So to wrap this up, the insurance industry is really scary at the moment. All right. That's what I'm trying to tell you there. I think the insurance industry is really scary. You should be afraid of the insurance industry right now, more than you are afraid of the MTO. The insurance industry currently is putting more carriers out of business than the MTO is. That's an opinion, but that's an opinion because of the work I'm doing, trying to help companies stay afloat during this time. All right. So that's it for today episode? What did we talk about real quick? We talked about the Canadian ELD and the program there and the exemptions for the Canadian ELD. Then we talked about the conditional CVOR. I am the conditional CVOR guys. I'll reach out if you need some help with that. All right. That's it for today? Safety Dawg is out.