LIABILITY COST AND RISK ANALYSIS STUDIES. TASK 1: ASSESS LIABILITY EXPENSE AND CLAIMS EXPERIENCE FOR SELECTED BUS TRANSIT AGENCIES

This study reviewed contemporary risk management practices for six U.S. transit systems. Areas investigated include risk financing, auto/bus vehicular liability (claims and losses), and transit's Federal reporting of casualty and liability expense. The larger systems in the study sample showed a consistent trend (1991-1994) for lower relative cost than the smaller systems including: casualty and liability expense, claims paid, and outstanding reserves for claims and lawsuits. Statutory maximums or jurisdictional legislated caps were found to reduce the incidence of number of large claims, but total tort liability relative to rider fees was in fact higher for those systems which operated under statutory maximums. Regression analysis showed that passenger miles is an excellent predictor of casualty and liability expense for all agencies across the sample. Risk management information systems were found to be out-dated and largely inadequate, with poor or no connectivity to transportation and financial data sources. Risk financing practices are stable, with risk managers reporting no current problems obtaining coverage or renewals.

  • Corporate Authors:

    Abacus Technology Corporation

    5454 Wisconsin Avenue, NW, Suite 1100
    Chevy Chase, MD  United States  20815

    Federal Transit Administration

    1200 New Jersey Avenue, SE
    Washington, DC  United States  20590
  • Authors:
    • Chaney, V
    • Derr, K
  • Publication Date: 1996-1

Language

  • English

Media Info

  • Pagination: 90 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00720903
  • Record Type: Publication
  • Source Agency: Federal Transit Administration
  • Report/Paper Numbers: FTA-MD-26-7001-96-1
  • Files: TRIS, USDOT
  • Created Date: Apr 30 1996 12:00AM