Telematics is a type of integrated technology that uses the power of telecommunications, Global Positioning System and the Internet. There is actually a more detailed list of technology involved, but these three are the main components that make the system work. In particular, vehicle telematics incorporates the use of this technology in automobiles.

The use of telematics in vehicles allows business owners to monitor the movement of company automobiles, as they go about their daily routines. This is especially true for sales officers, delivery vehicles, field agents and other business functions and tasks that require an employee to work outside the office. It monitors productivity and can detect improvements in that particular business function. It also works as a data transmitter of vehicle information like fuel usage, engine performance and location. Usually a trigger or timed device prompts the sending of vehicle data to a monitoring office.

The monitoring office in turn uses this data to utilize this business function and make the service and performance better. Among the many improvements that can be implemented are gas efficiency, faster travel routes and overall increase in productivity.

On the business side, you will understand the logic behind the use of telematics. However, issues on employee privacy emerged.

Telematics and the Privacy Act

On May of 2011, Senator Jay Rockefeller, head of the US Senate Committee on Commerce, Science and Technology introduced the Do Not Track Online Act. This bill gives consumers the option to choose anonymity when online services try to collect their personal information. The information is usually used for data mining but it also paves way for hackers and Cyber fraud to vital information and possible identity theft.

The Act, when approved, will apply to online activities that include telecommunication applications and vehicle telematics. Though the bill does not directly prohibit tracking, it gives the affected party the option to agree or disagree with the tracking. However, the bill also states that if the data collection is necessary to provide the service required by the user, data collection can be demanded.

Given those details, telematics will not be affected or threatened by the Do Not Track Online Act. However, industry experts believe that if the federal government will not act on the privacy issues, state governments might pass laws in their local territories to ensure that privacy is protected.

Telematics: Intrusion or Not?

Through the perspective of a business owner, telematics remains to be a necessity to protect their investment and profitability. Not only that, it allows the driver to get immediate help from the monitoring office if needed. The benefits of this application outweighs the privacy issue.

In fact, telematics is already becoming a personal investment. Insurance companies can detect the speeding trends of a vehicle claiming for accident grants. In black and white, it is an intrusion of privacy, but if the vehicle to which the telematics device is connected to belongs to the company, the business owner has the right to know how it is being used.

To protect the employees, they can air out their concerns and queries to the management prior to agreeing to the application of this technology. Stipulations in the agreement can be made to ensure that the employees are given their share of privacy rights. That much is covered by the telematics application provider.