National Safety Code in

April 22, 2004

What is NSC?

• The National Safety Code (NSC) is a set of safety standards for motor carriers, drivers and vehicles operating in Canada.

• Provides support through regulation for drivers and carriers to implement management processes to improve safety.

How was the NSC established?

• In 1989 the Canadian Council of Motor Transport Administrators (CCMTA) established the NSC standards.

• All provinces and territories have adopted the NSC standards and use them to develop their own regulations.

NSC Weight Threshold

• Vehicles included in NSC in BC are:• Trucks or truck tractors with GVW

exceeding 5000 kg

• Buses

• Vehicles licensed under the Motor Carrier operating authority (taxis and buses)

Carrier’s Obligations

• As a carrier, you are responsible for:– educating yourself and all drivers

who work under your Safety Certificate

– ensuring that all vehicles that are operated under your Safety Certificate are properly maintained

Carrier’s Obligations Cont.

– ensuring only competent and qualified drivers drive your vehicles

– establishing policies for monitoring hours of service, vehicle maintenance, safety programs, and ensuring your safety policies are followed

Carrier Profile Elements

• Carrier profile incorporates all of the information as required by NSC Standard 14

• Points are assigned for:OOS CVSA’s (3)At-fault Accidents (2, 4, 6)Deemed Guilty Contraventions (1, 2, 3, 5)All info. received through CDE on the above

NSC #: 00000200123456

NAME: NSC Sample Carrier

Carrier's Safety Performance

Your NSC Carrier Profile is a record that keeps track of indicators of your on-road safety performance. These indicators are:

* the number and type of at-fault accidents involving the vehicle(s) operating under your Safety Certificate (NSC points are removed from the profile for accidents if it can be determined that the driver was less than 50% at fault);

* roadside (CVSA) vehicle inspections that put a vehicle or driver out-of-service;

* contraventions (e.g. violation tickets) which have been deemed guilty; and

* an overall total of accidents, out-of-service CVSA inspections, and contraventions.

The above items may have occurred while operating in BC or other North American jurisdictions.

Most items recorded on a Carrier Profile are assigned NSC profile points. The following chart indicates your point scores in each of the above categories.

___________________________________________________________________________________ | PROFILE | | | OUT OF | | | | SCORES | FLEET | CONTRA- | SERVICE | ACCIDENTS| OVERALL | | | SIZE | VENTIONS | CVSA | | | |---------------------------------------------------------------------------------| | NSC Sample Carrier | 4.42 | 11.76 | 3.39 | 0.90 | 16.05 | |---------------------------------------------------------------------------------| | ANNUAL PROVIN MEDIAN | 3.01 - 5.00 | 1.00 | 0.80 | 1.47 | 1.21 | -----------------------------------------------------------------------------------

The chart compares your scores to the provincial median for carriers with the same or similar fleet size. Fleet size is determined by the number of days that your vehicle(s) have been operating under your NSC certificate over a 12-month period. Each 365 vehicle licenced days, or portion thereof, is considered to be one vehicle.

For your information, a copy of your Carrier Profile report is enclosed. The report shows information for each of the incidents recorded for your fleet. Please review the profile. If you find any inconsistencies, please report them to the NSC program office by mail, or by faxing a copy of the profile page(s) to (250) 952-0578. Indicate the discrepancy(s) and reason(s) why. If NSC points appear for an accident for which you were not considered to be 50% or more at fault, please provide a copy of this information from your insurance provider. The NSC program office will investigate and, where applicable, make the necessary corrections as promptly as possible.

To monitor your on-road safety performance, you may request a copy of your Carrier Profile on a regular basis. Send a letter, fax, or e-mail to the NSC program office requesting a copy of your Carrier Profile report.

ICBC-NSCSP351 (P) INSURANCE CORPORATION OF BRITISH COLUMBIA 2002-02-07 NATIONAL SAFETY CODE SYSTEM NSC CARRIER PROFILE CARRIER PROFILE FROM: 1999-FEB TO: 2002-FEB NSC CARRIER: BC 00000200123456 RECIPIENT ADDRESS: SUZANNE WATSON, NSC 910 GOVERMENT ST., VICTORIA, BRITISH COLUMBIA

NSC Sample Carrier 123 Sesame Street VICTORIA, BC, CAN, V0E 2A0 TOTAL NUMBER OF CURRENTLY LICENSED VEHICLES: 5.00 CARRIER SAFETY RATING --------------------- PROFILE STATUS: UNSATISFACTORY AUDIT STATUS: UNAUDITED CARRIER SAFETY RATING: SAT-UNAUDITED INTERVENTIONS DATE ---------------------------------------------------------------------------------------- TRIGGERED AUDIT 2001-12-01 WARNING LETTER 2001-12-01 TRIGGERED INTERVIEW 2001-12-01

SECTION 1 PAGE: 1 P-RP-RQ

ICBC-NSCSP351 (P) INSURANCE CORPORATION OF BRITISH COLUMBIA 2002-02-07 NATIONAL SAFETY CODE SYSTEM NSC CARRIER PROFILE PROFILE SCORES AS OF JANUARY 2002 NSC CARRIER: BC 00000200123456 MONTH NUMBER OF 12 MONTHS AVERAGE CONTRAVENTIONS CVSA ACCIDENT TOTALPROFILE VEHICLE DAYS TOTAL DAYS FLEET SIZE PROFILE PROFILE PROFILE SCORE ------------------------------------------------------------------------------------------ 2002-01 155 1615 4.42 11.76 3.39 0.90 16.05 ** 2001-12 155 1584 4.34 11.98 3.46 0.92 16.36 2001-11 173 1553 4.25 11.76 3.53 0.94 16.23 2001-10 143 1500 4.11 10.95 3.65 0.97 15.57 2001-09 121 1481 4.06 11.08 3.69 0.99 15.76 2001-08 124 1465 4.01 10.22 3.74 1.00 14.96 2001-07 125 1434 3.93 11.20 3.82 1.02 16.04 2001-06 120 1402 3.84 12.24 3.91 1.04 17.19 2001-05 124 1372 3.76 10.64 3.99 1.06 15.69 2001-04 123 1341 3.67 10.08 3.27 1.09 14.44 2001-03 140 1308 3.58 6.98 3.35 0.56 10.89 2001-02 112 1292 3.54 6.21 3.39 1.13 10.73 2001-01 124 1296 3.55 6.20 3.38 1.13 10.71 2000-12 124 1301 3.56 7.87 3.37 1.12 12.36 2000-11 120 1316 3.61 9.42 4.16 1.11 14.69 2000-10 124 1316 3.61 9.42 4.16 1.11 14.69 2000-09 105 1292 3.54 9.60 4.24 1.13 14.97 2000-08 93 1277 3.50 10.57 4.29 1.14 16.00 2000-07 93 1277 3.50 10.57 3.43 1.14 15.14 2000-06 90 1277 3.50 9.71 3.43 1.14 14.28 2000-05 93 1277 3.50 9.14 4.29 1.14 14.57 2000-04 90 1250 3.42 9.36 4.39 1.17 14.92 2000-03 124 1220 3.34 10.18 3.59 1.20 14.97 2000-02 116 1129 3.09 11.00 1.94 0.00 12.94 2000-01 129 1041 2.85 10.88 2.11 0.00 12.99 1999-12 139 943 2.58 9.69 2.33 0.00 12.02 1999-11 120 838 2.30 8.26 1.30 0.00 9.56 1999-10 100 748 2.05 9.27 1.46 0.00 10.73 1999-09 90 679 1.86 10.22 1.61 0.00 11.83 1999-08 93 620 1.70 8.24 1.76 0.00 10.00 1999-07 93 558 1.53 7.19 1.96 0.00 9.15 1999-06 90 496 1.36 8.09 2.21 0.00 10.30 1999-05 66 436 1.19 6.72 0.00 0.00 6.72 1999-04 60 401 1.10 4.55 0.00 0.00 4.55 1999-03 33 380 1.04 0.00 0.00 3.85 3.85 1999-02 28 378 1.04 0.00 0.00 3.85 3.85 1999-01 31 381 1.04 0.00 0.00 3.85 3.85 1998-12 34 412 1.13 0.00 0.00 3.54 3.54 1998-11 30 440 1.21 0.00 0.00 3.31 3.31 1998-10 31 453 1.24 0.00 0.00 3.23 3.23 1998-09 31 453 1.24 0.00 0.00 3.23 3.23 1998-08 31 452 1.24 0.00 0.00 3.23 3.23 1998-07 31 452 1.24 0.00 0.00 3.23 3.23 1998-06 30 452 1.24 0.00 0.00 3.23 3.23 1998-05 31 454 1.24 0.00 0.00 3.23 3.23 SECTION 2 PAGE: 2

ICBC-NSCSP351 (P) INSURANCE CORPORATION OF BRITISH COLUMBIA 2002-02-07 NATIONAL SAFETY CODE SYSTEM NSC CARRIER PROFILE PROFILE SCORES AS OF JANUARY 2002 NSC CARRIER: BC 00000200123456 MONTH NUMBER OF 12 MONTHS AVERAGE CONTRAVENTIONS CVSA ACCIDENT TOTALPROFILE VEHICLE DAYS TOTAL DAYS FLEET SIZE PROFILE PROFILE PROFILE SCORE ------------------------------------------------------------------------------------------ 1998-04 39 485 1.33 0.00 0.00 3.01 3.01 1998-03 31 506 1.39 0.00 0.00 0.00 0.00 1998-02 31 537 1.47 0.00 0.00 0.00 0.00 **NOTE: THE CARRIER PROFILE STATUS IS DETERMINED BY YOUR PROFILE SCORES IN RELATION TO THRESHOLD LEVELS FOR FLEETS OF SIMILAR SIZE. THE TABLE BELOW SHOWS THE THRESHOLD VALUES AND CORRESPONDING PROFILE STATUS BASED ON YOUR CURRENT FLEET SIZE FOR THE CURRENTMONTH: PROFILE STATUS SATISFACTORY CONDITIONAL UNSATISFACTORY CONTRAVENTIONS < 6.50 6.50-11.99 >11.99 CVSA < 3.81 3.81- 6.30 > 6.30 ACCIDENTS < 3.62 3.62- 4.61 > 4.61 TOTALS < 9.25 9.25-14.34 >14.34

SECTION 2 PAGE: 3

ICBC-NSCSP351 (P) INSURANCE CORPORATION OF BRITISH COLUMBIA 2002-02-07 NATIONAL SAFETY CODE SYSTEM NSC CARRIER PROFILE VEHICLE INSPECTION HISTORY FROM: 1999-FEB TO: 2002-FEB NSC CARRIER: BC 00000200123456

VEHICLE REGISTRATION: 01111111 PLATE 46397W 62 CONMOR DATE ACTION MICROFILM # OUTCOME

2001-02-17 CVIP 2361411 INSPECTION PASSED 2000-08-09 CVSA 2461951 OUT OF SERVICE 2000-04-17 CVIP 2361425 INSPECTION PASSED 1999-12-15 CVSA 2286941 OUT OF SERVICE 1999-07-07 CVIP 2177083 VEHICLE INSPECTIONREJECTED 1999-06-03 CVSA 2160652 VIOLATIONS PRESENT 1999-04-24 CVSA 2111971 VIOLATIONS PRESENT

VEHICLE REGISTRATION: 02222222 PLATE 57106W 96 JC DATE ACTION MICROFILM # OUTCOME

2001-10-19 CVIP 2361999 INSPECTION PASSED 2001-02-06 CVSA 2556275 VIOLATIONS PRESENT 2000-04-19 CVIP 2361927 INSPECTION PASSED 2000-03-30 CVSA 2362671 OUT OF SERVICE

VEHICLE REGISTRATION: 03333333 PLATE 08389W 96 MANAC DATE ACTION MICROFILM # OUTCOME

2001-06-02 CVIP 2640999 INSPECTION PASSED 2001-05-31 CVSA 2640815 VIOLATIONS PRESENT 2001-05-23 CVIP 2633633 VEHICLE INSPECTIONREJECTED 2001-04-08 CVSA 2606037 OUT OF SERVICE 2001-04-08 N&O 2606037 TYPE 1 2001-03-26 CVSA 2584715 OUT OF SERVICE 2000-03-29 CVSA 2342908 OUT OF SERVICE

VEHICLE REGISTRATION: 044444444 PLATE 97 INTERNATNA DATE ACTION MICROFILM # OUTCOME

2001-10-22 CVIP 2753222 INSPECTION PASSED

VEHICLE REGISTRATION: 05555555 PLATE 8946DN 88 INTERNATIO DATE ACTION MICROFILM # OUTCOME

1999-06-01 CVIP 2139154 INSPECTION PASSED

SECTION 5 PAGE: 4

ICBC-NSCSP351 (P) INSURANCE CORPORATION OF BRITISH COLUMBIA 2002-02-07 NATIONAL SAFETY CODE SYSTEM NSC CARRIER PROFILE CARRIER CONTRAVENTIONS FROM: 1999-FEB TO: 2002-FEB NSC CARRIER: BC 00000200123456 VIOLATION ACT SECTION EQUI DESCRIPTION LOCATION JRTICKET# PLATE JR PTS DISP DATE DATE TIME CODE ----------------------------------------------------------------------------------------------------------------------------- 1999-05-13 13:50 MVA 146.3 0004 SPEED AGAINST HIGHWAY SIGN ENDERBY BCSC012345671 A12345 BC 2 1999-09-24-TOTALS NUMBER OF NUMBER OF CONTRAVENTIONS NSC POINTS -------------------------------------------------- 1 2

ICBC-NSCSP351 (P) INSURANCE CORPORATION OF BRITISH COLUMBIA 2002-02-07 NATIONAL SAFETY CODE SYSTEM NSC CARRIER PROFILE ACCIDENT INFORMATION FROM: 1999-FEB TO: 2002-FEB NSC CARRIER: BC 00000200123456 VEHICLE VEHICLE D/L JR DRIVER NAME DATE TIME TYP LOCATION JR FAULT NSCCHR REPORT# PLATE RESP PTSLAID ---------------------------------------------------------------------------------------- R1234567 G01111 6543211 AB DRIVER,NELSON 2001-04-03 16:30 PD KELOWNA BC UNK 2 R2345678 G02222 4682468 BC DRIVER,OLIVER 2001-03-03 03:43 PD ABBOTSFOR BC UNK 2 R3456789 3333AB 1234567 BC DRIVER, BENJAM 2000-03-31 18:58 I VANDERHOO BC UNK 4-TOTALS NUMBER OF NUMBER OF ACCIDENT REPORTS NSC POINTS -------------------------------------------------- 3 8

Requesting a Carrier Profile

• Fax request to (250) 952-0578

• Include carrier name, NSC number, and specific date range (if applicable)

• Carrier profiles are provided to the carrier free of charge

Progressive Intervention Process - Risk Bands

• Carriers are divided into 7 risk bands based on fleet size

Risk Band Fleet Size % of carriers % of vehicles1 0-01 - 1 vehicle 57% 18%2 1.01 - 2 vehicles 19% 10%3 2.01 - 3 vehicles 7% 6%4 3.01 - 5 vehicles 7% 8%5 5.01 - 9 vehicles 5% 10%6 9.01 - 20 vehicles 3% 13%7 20.01+ vehicles 2% 35%

Progressive Intervention Process - Thresholds

• Within each risk band, the provincial median is calculated in each of the 4 categories:

• Contraventions• Inspections• Accidents• Total Points

• Thresholds for warning letter, interview, audit, and hearing are established based on the median in each risk band

Progressive Intervention Process - Carrier Profile Scores• Points are calculated using a 12-

month moving window (12 months is established from deemed convicted date)

• Points are based on a per vehicle score (established by dividing the points by the 12-month average fleet size) Note: 1 vehicle=365 days of licensing

Progressive Intervention Process - Warning Letter

• Warning Letters are triggered automatically at the beginning of each month

• 1545 carriers (or 6.9% of active carriers) were triggered for a warning letter in 2003

Progressive Intervention Process - Interview

• Carrier interviews are triggered at the beginning of each month.

• 461 carriers (or 2.1% of active carriers) participated in an interview in 2003

• Other sources of interviews are:

• Carrier selected for random audit (not previously interviewed or audited)

• Carrier Requested

• Requested by enforcement or 3rd party

Progressive Intervention Process - Audit

• Carrier audits are triggered at the beginning of each month.

• 379 audits (or 1.7% of active carriers) were conducted in 2003

• Other sources of audits are:• Random (Clean, NSC Random, Motor

Carrier Random)• Follow-up (1st or 2nd follow-up)• Carrier Requested• Requested by enforcement or 3rd party

Progressive Intervention Process

• Warning Letter

• Carrier Interview

• Quantifiable Audit

• Show Cause Hearing

Carrier Audit

• Audit points are assigned on the basis of non-compliance

• Audit statuses are assigned as follows:• 1-10 points - Satisfactory

• 10.1-20 points - Conditional

• 20.1+ points - Unsatisfactory

2003 Safety Rating StatisticsSafety Rating Statistics (Audited carriers) as at December 31, 2003

Satisfactory64%

Conditional28%

Unsatisfactory8%

Record-keeping

• Records must be kept for the four areas of your NSC obligations:– drivers– hours of service– vehicles– special safety requirements

Driver Records

• You must keep records on each of the following for every driver who works under your Safety Certificate:– driver license– transportation of dangerous goods

training certificates– driver abstracts– driver incident records

Hours of Service

• As a carrier, you are responsible for ensuring that your drivers obey hours-of-service regulations

• Drivers of almost all NSC vehicles must follow these rules.

Hours of Service Cont.

• Your obligations are to:– understand the hours-of-service

rules– ensure your drivers do not drive

for longer periods than they are legally allowed to do

Hours of Service Cont.

– ensure your drivers get the rest periods they are required to have

– keep accurate records that show your drivers are working within the legal limits

Vehicle Maintenance

• You must ensure every vehicle that operates under your Safety Certificate is properly maintained.

Vehicle Records

• As a carrier, you must:– Retain all manufacturer recall

notices and evidence of corrective action

– Retain all vehicle maintenance, inspection, and repair records

– Maintain, inspect, and repair all vehicles according to the regulations

Vehicle Records Cont.

– Ensure trip inspections are properly conducted

– Take appropriate action on all defects found during trip inspections

– Ensure you retain all required trip inspection reports

Safety Rating Legislation

• 4-level Safety Rating process implemented November 2001

• Enacted in BC legislation under the Motor Vehicle Act Regulations (MVAR 37.061) on April 2, 2001

Rating Carriers in BC

• Safety ratings are assigned to BC base-plated carriers only

• All BC Carriers receive a Safety rating.

• On December 31, 2003, there were 22,259 active base plated carriers in BC

Safety Rating Categories

• BC may assign one of four safety ratings to a carrier (MVAR 37.061):

– Satisfactory-Unaudited– Satisfactory– Conditional– Unsatisfactory*

• Active in 2003:Safety Rating # of Carriers

Satisfactory-Unaudited 21833Satisfactory 285Conditional 141Unsatisfactory 74

Assigning Safety Ratings

CARRIER PROFILE STATUS + AUDIT STATUS = SAFETY RATINGSatisfactoryConditionalUnsatisfactory

UnAudited(no Audit has been done)

Satisfactory-UnAudited

Satisfactory Satisfactory SatisfactorySatisfactory Conditional

UnsatisfactoryConditional orUnsatisfactory

ConditionalUnsatisfactory

SatisfactoryConditionalUnsatisfactory

Conditional orUnsatisfactory

Progressive Intervention Process - Show Cause Hearing

• 22 NSC certificates were cancelled in 2003

• Audits are conducted prior to a recommendation for cancellation

• CCMTA is notified when a decision is reached to cancel a certificate in BC

On Duty/DrivingCanada Current Canada New13 hours driving 13 hours driving15 hours on duty 14 hours on duty

(not limited) (limited)

Hours of Service

RestCanada Current Canada New8 hours continuous 10 hours

8 continuous other 2 hours can be

in 1/2 hour increments

Hours of Service

CyclesCanada Current Canada New60 hours in 7 days 70 hours in 7 days70 hours in 8 days n/a

120 hours in 14 days 120 hours in 14 days

Hours of Service

ResetCanada Current Canada New

n/a 36 continuous hours offresets 7 day cycle

n/a 72 continuous hours offresets 14 day cycle

Hours of Service

SleeperberthCanada Current Canada New

single & co-drivers can split only team drivers can splittheir off duty in 2 periods their off duty into 2 periods

neither of which is neither which can be less than 2 hours less than 4 hours

Hours of Service

48 Hour AveragingCanada Current Canada New

n/a The 2 extra hours of rest can be carried forward to day 2 if the time is

added to the 8 hours ofcontinuous rest on day 2

Hours of Service

Short ChangeCanada Current Canada New

once in 7 days n/a8 hours of rest can be

reduced to 4 hours if the time missed is added

to the next 8 hours of off duty time

Hours of Service

Cycle SwitchingCanada Current Canada New

no need to declare cycle must declare cyclen/a to move from cycle 1 to cycle 2

36 hours offn/a to move from cycle 2 to cycle 1

72 hours off

Hours of Service

24 Hours OffCanada Current Canada New

n/a once in every 14 days a driver must take 24 continuous hours

off duty

Hours of Service

Hours of Service

Summary of Changes

• Requirement for 10 hours off within every 24 hours• Limitation to 14 hours of elapsed time between periods of 8 hours off• 48 hour averaging• Must identify cycle• 36/72 hours off to switch cycles or reset cycle• Only team drivers can split sleeper time• 2 cycles - 70 hours in 7 days - 120 hours in 14 days• Once in every 14 days a driver must take at least 24 hours off duty