What is the insurance bill for each Department of the States

1240/5(5394)

WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY THE DEPUTY OF ST. MARY

ANSWER TO BE TABLED ON TUESDAY 25th MAY 2010

Question

"Given the Minister's assurances that he is fully aware of where the money goes' can he advise members the insurance bill for each Department of the States?

Can he further inform members how much of that insurance bill relates to liability insurance payments covering each Department's duties and responsibilities towards the public and possible failures or damages caused in carrying out such duties?"

Answer

The main States' insurance programme is managed centrally by the Treasury to enable the States to achieve economies of scale within the insurance market. A summary of the type of insurance cover purchased and the Departmental allocations is detailed below:

States Insurance Programme

2009 2010

to 17 May Premiums: £ £ Property 279,474  291,210 Motor 85,320  90,540 Liability 1,023,994  985,840 Excess Liability 312,000  312,000 Personal Accident & Travel 135,219  129,635 Engineering Inspections 282,833  290,215 Miscellaneous Marine 6,000  6,000

2,124,840  2,105,440

Services:

Claim Management Fee 32,500  34,250 Insurance Service Fee 105,000  105,000 137,500  139,250

Self Insurance:

Self Insurance 1,656,957  1,561,615 1,656,957  1,561,615

Total Insurance Costs1 3,919,297  3,806,305

The self insurance allocations detailed above are held within the Consolidated Fund to meet the costs of self- insurance claims. A report and Proposition regarding the States self insurance arrangements will be presented to the States in the second half of the year.

2009 2010 Departments Insurance to 17 May

£ £

Corporate States Insurance (Treasury) 2,488,927 2,369,581 Bailiff 's Chamber 9 9 Chief Minister's 6,501 6,664 Data Protection 19 20 Economic Development2 173,663 178,930 Employment & Social Security 28,626 29,342 Education, Sport & Culture 292,285 299,593 Health & Social Services 189,286 194,018 Home Affairs 97,440 99,876 Housing 346,494 355,156 Judicial Greffe 225 231 Law Officers' 83 85 Office of the Lieutenant Governor 532 545 Official Analyst 233 238 Planning & Environment 35,186 36,066 Probation 1,232 1,263 States Assembly 1,523 1,561 Transport & Technical Services 181,582 186,122 Treasury & Resources 74,340 45,868 Viscounts 1,110 1,138 Total Insurance Costs1 3,919,297 3,806,305

Notes

1. 'Total Insurance Costs' do not include £30k HSBC Risk ManagementFee
2. Includes Airport and Harbours.

In addition to the insurance expenditure detailed above, Departments may chose to purchase additional specific insurance to provide cover for their particular risk exposures. These include:

Education, Sport & Culture   - P u pil Travel Policy, Work Experience Contingent Liability Airport  - A i rside Insurance and Contractors Airside Excess Infill Health & Social Services   - C onsultants Insurance - Medical Defence Union

Home Affairs     - P o lice Authority Legal Expenses

Harbours   - P u blic Liability Excess Layer

Treasury & Resources   - J P H Rock Stabilisation Insurance

I wish to add a comment on "where the money goes".  As Treasury Minister I want to be held accountable to ensure there is an environment where Accounting Officers can assure members they have an appropriate control structure in place to control public money.  I have set out a policy programme to significantly strengthen financial management across the States. This is designed to ensure that all departments improve their financial management and controls.  The Treasury restructuring plan has been worked on by the Interim Treasurer of the States since his appointment earlier this year.  The Interim Treasurer is now well under way with the new departmental structure taking effect from 1 June at a senior level with the rest of the organisation being strengthened over the coming months.

I would envisage that by the end of the year I will be able to report a significant improvement in the financial management across the organ