Insurance arrangements

Report: 12
Date: 15 September 2003
By: Treasurer

Summary

This report explains the arrangements put in place for the Authority’s liability and property insurances.

A. Recommendations

That

1. the Committee notes the arrangements put in place under urgency procedure for liability insurances; and
2. the Treasurer in consultation with the Chair of the Committee, be authorised to finalise arrangements for property insurances, as outlined in the linked exempt report, to be operative from 1 October 2003.

B. Supporting information

Liabilities insurance

1. This Committee agreed at its meeting on 10 July that the Treasurer be given delegated powers to authorise liability insurances for the 2003-04 liability insurance renewal programme after consultation with the Chair, or Deputy Chair of the Committee.

2. Liability insurances were formally agreed under Urgency Procedure following ‘in principle’ consultation with the Chair and detailed consultation with the Deputy Chair. The insurances are effective from 1 August 2003 for a further year.

Cover

3. The Authority’s insurance advisers Willis were engaged to prepare the insurance programme. There will now be separate cover for motor liability. This is based on £250,000 excess each and every claim and unlimited total cover, except for third party property damage which would be limited to £10 million, (though cover would be picked up at £20 million plus from the general liabilities insurance).

4. The cover for liabilities other than motor will be based on an individual excess each and every claim of £10 million together of a layering of cover. This is explained more fully in the exempt paper.

5. The basis of cover for the insured period is now ‘claims occurring’ rather than the former ‘claims made’ basis. This means that the insurer’s liability is no longer restricted to claims arising in the insured period, which have also been registered in the period.

6. Cover includes employers liability, public/products liability, third party motor, but excludes employment practices liability, employment related costs and/or counsels fees and employment tribunal awards. The possibility of including officials indemnity and fidelity guarantee within the new policies will be discussed further with Willis.

Property insurance renewal

7. The annual property insurance renewal is due from 1 October 2003. Tenders have now been received and they are shown in the exempt linked report – agenda item 15.

C. Equality and diversity implications

None specific to this report.

D. Financial implications

Liability and Property Insurance

The exempt linked report identifies additional budget requirement of £1.519 million in 2003/04 and £1.985 million in a full year . This sum will be contained within existing insurance and compensation budgets.

E. Background papers

None

F. Contact details

Report author: Peter Martin, Treasurer, MPA.

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

Send an e-mail linking to this page

Feedback