Personal insurance indemnity policy - progress report

Report: 10
Date: 11 December 2007
By: the Treasurer and the Director of Strategy and Modernisation on behalf of the Commissioner

Summary

The Finance Committee ratified informal approval of the Personal Insurance Indemnity Policy (PIIP) in November 2004. This followed agreement in principle by MPS Management Board that MPS personnel should be indemnified by the MPA in certain tightly defined situations where their own personal life and accident insurances do not provide an indemnity.

Finance Committee required that the PIIP be made annually renewable with an annual progress report being provided summarising key developments since implementation of the policy. This is the 2007 progress report.

A. Recommendations

1. To approve renewal of the policy for a further 12 months.

2. To note activity in year in respect of enquiries about the policy and the volume of claims and/or payments.

3. To note progress on the proposal to approach the Home Office for a Central Government indemnity.

B. Supporting information

1. Background - The purpose of this policy is to provide an indemnity to MPS police officers and police staff who are or may be engaged in high risk duties (subject to compliance with the terms and conditions of the Policy) who may find themselves in a situation where their qualifying personal insurance fails to provide cover or is not available. This policy demonstrates the willingness of the MPA as an employer of choice to address issues of concern to MPS police officers and police staff in the performance of their duties in today’s society.

2. Communications - This year the communications exercise has concentrated on incorporating information on the policy into the revised and republished MPS Overseas Travel Policy. This will enable all officers travelling abroad to see how the Policy may affect them and to more readily identify the steps required for qualification under the policy. This streamlined and unified approach to the provisionof the information brings advice and guidance on the policy to a wider audience yet maintains the focus on reaching those officers who are most likely to be affected by the provisions of the policy.

3. Activity - There have been five specific enquries from MPS personnel about the policy and its application during the year. Two teams of officers from the Counter Terrorism Command who were scheduled to travel abroad to high risk locations made applications for indemnity under the policy should they not be indemnified by their own insurance arrangements. These officers have been assured that the policy is applicable to their individual circumstances for their trip abroad. A further notification of possible refusal of private life insurance cover by a commercial insurer for an officer travelling abroad operationally was subsequently resolved when the officer confirmed that he had successfully arranged alternative cover at no extra cost. An officer attached to Royalty and Diplomatic Protection sought advice about cover during specialist training overseas and was assured that he would be covered under the policy. A group of officers from Specialist Firearms Command travelling abroad were given advice about the policy. Two senior officers travelling abroad were also given confirmation that they would be indemnified under the terms of the policy.

4. Central Government mass claims indemnity – The Finance Committee has approved an approach by the Director of Strategic Finance to Central Government for a ‘top-up’ indemnity to cover mass claims arising from a catastrophe situation. The first step has been to identify which forces have developed their own Personal Insurance Indemnity Policies and request confirmation from those with an indemnity that they are content for the MPS to make an initial approach to the Home Office on behalf of all HO forces with these indemnities. It will also be important for them to confirm various details of their PIIP e.g. their limit of indemnity and details of any claims paid. Secondly for the Treasurer to seek support from the APA for such an approach to Central Government and thirdly for discussions to take place with ACPO that we can make such an approach to the HO on their behalf. The survey of existing PIIPs is currently being undertaken via the ALARM Policing Sector Group. The Treasurer has agreed to approach the APA regarding support for the approach to Ministers. We will make formal contact with ACPO once the results of the ALARM survey have been received and collated.

Abbreviations/clarification

ALARM
     - the National Forum for Risk Management in the Public Sector
ACPO
     - Association of Chief Police Officers
APA
     - Association of Police Authorites
PIIP
     - Personal Insurance Indemnity Policy

 C. Race and equality impact

The policy applies to all MPS police officers and police staff and the work to promulgate the policy and response to enquires has been carried out on that same basis.

D. Financial implications

1. To date there have been no claims for indemnity under the policy and no money has been paid out under the policy. Building up earmarked provision to cover potential indemnity liabilities have been developed (as at March, this will be £510,000) as part of the overall arrangements for insurance cover.

2. A top-up indemnity would cap the Authority’s potential financial liability at a level consistent with its self-insurance limits. There are no adverse financial implications of the proposal to approach Central Government.

E. LEGAL IMPLICATIONS

The power of the Authority to grant this indemnity and the terms and conditions of the indemnity were the subject of legal advice prior to approval being granted. Subsequent changes to the wording of the indemnity have been cleared with the legal advisers.

F. Background papers

• MPA Finance Committee November 2004: Report on the Personal Insurance Indemnity Policy and Management Board reports MB(04)77 and MB(04)99
• MPA Finance January 2006: Progress Report on the Personal Insurance Indemnity Policy
•  MPA Finance October 2007: Report on Approach for Central Government Indemnity

G. Contact details

Report author: Nick Chown, Director of Risk Management MPS

For more information contact:

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

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