Record fines imposed on an SA truck company and two staff show the haulage industry faces “heavy-handed” regulation, according to Specialist Underwriting Agencies (SUA) Director John Iles.

The NSW Roads and Maritime Services Department says the $1.25 million of penalties against Scott’s Transport are the highest in the state since “chain of responsibility” legislation was introduced in 2005.

“Although the Scott’s fine is the largest we’ve seen under this legislation, it is by no means the only one,” Mr Iles told insuranceNEWS.com.au.

He says many transport prosecutions are warranted, but it is “concerning” that regulators appear to be “storing up charges and conducting heavy-handed investigations into a company’s procedures and operations”.

Improved technology means regulators now have more ways to identify breaches.

Mr Iles says regulators should issue warnings for individual breaches rather than raiding trucking companies and charging them for offences that occur over a long period.

“Heavy-handed tactics such as this only serve to get the transport companies offside, and do not aid in fulfilling the intent of the legislation.”

In May Scott’s was penalised over 165 offences concerning speeding and speed limiter compliance between August 2010 and March 2012.

Fines were imposed on the company, its manager Peter Anderson and Scott’s Group of Companies director Ray Scott.

Scott’s Group’s previous manager, Bruce Grubb, had been fined in a separate case.

Chain of responsibility laws make all parties in the consignment and delivery chain liable for breaches, including drivers and their employers, packers, consignors, consignees, loaders and company directors.

To date more than 4540 charges have been laid, including 2497 against operators and 523 against company directors.

The legislation was introduced in NSW and Victoria in 2005, the ACT in 2010 and Queensland and SA in 2007. Draft laws may soon be approved in WA.

Mr Iles says that no matter how good a transport company’s systems are, failures can occur that lead to breaches.

“With a 40-tonne piece of machinery on the road, it only takes a minor failure to cause a major catastrophe.”

Insurance is not the only answer, but it helps companies to know that, in the event of an inadvertent breach followed by investigation and prosecution, they will receive a proper defence.

Mr Iles says directors’ and officers’ policies are likely to cover some legal costs, while stand-alone statutory liability and inquiries cover can also provide significant protection, as can management liability policies with statutory liability extensions.

However, most liability cover excludes criminal acts, dishonesty and negligence.