Company Car / Vehicle Policy
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Company Car / Vehicle Policy
Company Car / Vehicle Policy Company Name: Effective Date: Policy Owner: Approved By: Fleet Manager / Contact: PURPOSE & SCOPE - This policy establishes the rules and responsibilities governing the allocation, use, maintenance, and return of company-owned or company-leased vehicles provided to eligible employees. It ensures accountability, promotes road safety, and protects the Organization's assets. - This policy applies to all employees who are assigned a company vehicle or who use a company vehicle in the course of their duties, including employees who receive a vehicle allowance in lieu of a company-provided vehicle. - The Fleet Manager, or the Administration department where no Fleet Manager is designated, shall serve as the policy owner and shall be responsible for vehicle allocation, maintenance scheduling, insurance administration, and compliance monitoring. ELIGIBILITY & VEHICLE ALLOCATION - Eligibility for a company vehicle shall be determined by the employee's job grade, role requirements, and business travel needs as defined in the Organization's vehicle eligibility matrix. Allocation shall be approved by the employee's Department Head and the Fleet Manager. - Employees assigned a company vehicle shall possess a valid driver's licence for the class of vehicle assigned, maintain an acceptable driving record, and complete the Organization's defensive driving training program before taking possession of the vehicle. - Employees shall sign a Vehicle Assignment Agreement upon receiving a company vehicle, acknowledging the terms of use, personal liability, tax implications, and the obligation to return the vehicle in good condition upon separation or reassignment. VEHICLE USE, SAFETY & CONDUCT - Company vehicles shall be used primarily for authorised business purposes. Limited personal use may be permitted in accordance with the terms specified in the Vehicle Assignment Agreement, subject to the employee bearing any associated fuel costs and tax liability. - Employees operating company vehicles shall comply with all traffic laws, wear seatbelts at all times, refrain from using mobile devices while driving unless using a hands-free system, and shall never operate a vehicle while under the influence of alcohol, drugs, or any substance that impairs driving ability. - All accidents, incidents, damage, theft, or traffic violations involving a company vehicle shall be reported to the Fleet Manager within 24 hours. Employees shall cooperate fully with the Organization's investigation and any insurance claims process. MAINTENANCE, FUEL & INSURANCE - Employees are responsible for ensuring that their assigned vehicle is maintained in good working condition. Routine servicing shall be carried out at the intervals specified by the manufacturer and shall be arranged through the Fleet Manager using approved service providers. - Fuel costs for authorised business travel shall be borne by the Organization through the assigned fuel card. Fuel cards shall be used exclusively for the assigned vehicle and shall not be used for personal fuel purchases. - The Organization shall maintain comprehensive insurance coverage for all company vehicles, including third-party liability, collision, and comprehensive cover. Employees shall be responsible for any excess or deductible in the event of a claim arising from the employee's negligence or violation of this policy. VEHICLE RETURN & POLICY COMPLIANCE - Employees shall return their assigned company vehicle to the Fleet Manager upon separation from the Organization, change of eligibility, transfer to a role that does not qualify for a vehicle, or at the Organization's request. The vehicle shall be returned in clean and good condition, ordinary wear and tear excepted. - Violations of this policy, including unauthorised use, failure to maintain the vehicle, driving under the influence, or failure to report accidents, shall result in disciplinary action up to and including termination of employment and revocation of vehicle privileges. - This policy shall be reviewed at least once every 12 months by the Fleet Manager in consultation with Legal Counsel and the Finance department. Amendments shall be communicated to all vehicle-assigned employees before the effective date.
Everything you need to know
01What Is a Company Car / Vehicle Policy?
A company car or vehicle policy sets the rules for employees who drive company-owned or company-funded vehicles. It covers eligibility, permitted use, driver responsibilities, insurance, maintenance, and what happens in the event of an accident. Whether the vehicle is a dedicated fleet car or a personal car used for business, the policy protects both the employee and the company and keeps everyone clear on their obligations.
02Why Companies Need a Vehicle Policy
Vehicles carry real liability: accidents, insurance claims, and tax implications can all fall back on the company. A written policy defines who is authorized to drive, sets safety expectations, and clarifies responsibility for fuel, tolls, fines, and maintenance. It also documents the rules around personal use, which affects tax treatment, and gives you a clear basis for revoking driving privileges when necessary.
03What a Vehicle Policy Should Include
Define eligibility and the license and record checks required to qualify. Cover permitted business and personal use, insurance coverage, and the driver's responsibilities for safety, maintenance, and reporting. Address fuel cards, tolls, and traffic fines, along with accident reporting procedures. Include rules on prohibited behavior like driving under the influence or using a phone, and the tax implications of personal use.
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