Accounting Instruction No. 11

Accounting Instruction No. 11

INSURANCE

Financial Regulations

Financial Regulations C.1, C.2, C.3 and C.4 apply to this accounting instructionand can be found on page 135 of the Gloucestershire County Council Constitution

1. Introduction

1.1The aim of this Accounting Instruction is to inform staff who have responsibility for insuring the County Council against different risks. It will also tell staff what action they should take if they believe they have a claim against one of these insurance policies.

1.2Risk Management & Insurance Services should be contacted for advice on any questions concerning insurance, (extension 5864, 5883, 6754, 5865, 5548 or 5550).

1.3Staff are reminded that they should inform the RiskInsurance Manager, Strategic Finance, promptly of any event which may be a claim or potential claim against the Council.

2.Premises and Equipment

All Claims should be notified to Risk Management and Insurance Services (RMIS) by telephone as soon as possible with written confirmation within 14 days.

2.1All County owned premises and contents are insured against loss by fire, lightning, explosion, aircraft, riot, civil commotion earthquake, storm/flood and escape of water. RMIS arrange this insurance centrally. In the event of a fire the Head of Establishment/Service area should contact the Asset Management & Corporate Services (AMPS) emergency response team which will contact the Premises Manager in the event of an incident to give appropriate guidance. Any claims greater than £5,000 require a Loss Adjuster to be appointed and the Head of Establishment/Service area should inform AMPS emergency response team if they believe the claim would exceed this amount. RMIS should be informed either by the Head of Establishment/Service area or AMPS emergency response team that a claim will be made. An approximate estimate of the size of the claim should be given to RMIS who will issue a claim form for completion and return.

2.2The County Council is responsible for ensuring that certain items of plant such as lifts, lifting equipment and pressure plant are inspected periodically in accordance with the statutory requirements. The Head of Establishment/Service area should contact RMIS if they have plant which has not been inspected in the last year. Any new plant acquired, or any plant decommissioned, must be notified to RMIS within 14 days.

2.3In addition to the perils in 2.1 RMIS operate a self-funded "All Risks" policy for insuring equipment against damage or loss. The cost of insuring this equipment has to be met from an establishment or service’sdevolved budget and each budget holder decides upon the level of insurance. All establishments, who require items to be insured, should contact RMIS for details of the scheme and an application form.

2.4All thefts must be reported to the Police, Risk Management and Insurance Services and Internal Audit.

3.Vehicle Insurance

3.1Each vehicle owned by the County Council, must be insured through RMIS. All vehicles are insured fully comprehensively but with a £200* excess per claim chargeable to the service area for damage to the vehicle itself.

* Subject to change – please check with RMIS for current excess.

3.2Each year RMIS send out a letter to service areas to remind them of the vehicles which were insured in the previous year. It is each Managers responsibility to ensure that a vehicle operated by his/her service is insured. These letters should be checked and any vehicles added to or deleted from the list as appropriate. Managers should, however, ensure that RMIS are informed whenever a vehicle is bought or sold by their service so that the insurance schedule may be kept up to date. Penalties can be imposed for non-compliance.

Under EU legislation, the County Council must now hold a complete and accurate record of each vehicle’s insurance; including vehicles hired for more than 14 days, and must declare all changes to the Motor Insurers Database.

3.3Vehicles hired short term can be insured either through RMIS or through the hiring company. RMIS should be informed in advance if the Council's insurance is required.

3.4 In the event of an accident the procedures laid down in Appendix 1 should be

followed.

4.Insurance for Employees and Volunteer Helpers

4.1Liability Insurances

All letters of claim should be forwarded to RMIS immediately without any acknowledgement of receipt. RMIS will arrange for an acknowledgement to be issued in accordance with the time limits allowed in the Civil Procedure Rules.

All Claims or Incidents, which may give rise to a claim, should be notified to RMIS.

All accidents occurring at work must be recorded in the Accident Book.

4.1.1Public Liability

This policy covers all employees and volunteers acting on behalf of the County Council for liability arising from negligent acts which cause personal injury to a third party or damage to a third party property. In the event of a claim or possible claim RMIS mustbe informed and liability mustnot be admitted.

4.1.2Employer's Liability

This policy covers all employees and volunteers acting on behalf of the County Council for personal injury sustained as a result of negligence on the part of the Authority, or another employee/volunteer whilst acting in the course of their duties of employment.

In the event of a claim or a possible claim, liability mustnot be admitted and RMIS must be informed.

4.2Personal Accident and Assault

All employees and volunteers are provided cover under these policies in respect of certain injuries sustained whilst acting on behalf of the County Council, or whilst travelling from their private residence to their place of duty. All claims should be made through RMIS. Benefits under this policy are made at the discretion of the Council.

5.Loss of Cash

5.1The County Council is insured for the loss of money up to set limits if it is in a locked, secured receptacle e.g. a locked drawer or filing cabinet. Cash left in locked offices is not insured if left unattended on a desktop. It should be locked away whenever the office is empty.

5.2The limits for loss of money are: –

Up to £250 if left in a locked drawer, cabinet, etc. in the Authority’s premises.

Up to £1,000 if left in a freestanding or wall safe. Further increases by

agreement, may be possible for selected establishments where the

particular safe and installation meet with requirements of the insurance

company (see Accounting Instruction No. 3, section 5, ‘Security on the

Premises’).

Up to £250 in the private residence of an employee

5.3Money in transit in the custody of an employee depending upon the

number of people taking the cash.

In transit:

– accompanied by one person £2,500

–accompanied by two persons £2,500-£5,000

–accompanied by three persons £5,000- £10,000

_security company or specialist £10,000-£150,000 vehicle to be used

Cash held on behalf of unofficial funds is insured up to a maximum of £250 even if kept in a locked safe.

Safe keys must not be left on unattended premises but should be kept by the nominated key holder.

Refer to Accounting Instruction No. 3 “Security of Cash” or Internal Audit for any further advice on the handling of money.

5.4RMIS should be contacted in the event of a claim and all thefts must be reported to the Police, and Internal Audit.

5.5In the event of funds being misappropriated you should refer to Accounting Instruction No. 10 “Action on Suspected Irregularities”. Internal Audit will arrange for an audit report to be submitted to RMIS.

Feb 2013

APPENDIX 1

Gloucestershire County Council

Risk Management and Insurance Services

Procedures to follow in the event of a Motor Accident

1.DO NOT ADMIT RESPONSIBILITY FOR THE ACCIDENT.

2.Inform the Police if anyone is injured.

3.Obtain the name and address of the other party, or parties involved, together with details of their insurers. If it is not possible to exchange details then report the incident to the Police within 24 hours.

4.Obtain the name and address of any independent witnesses.

5.Make a note of the damage to the other parties vehicle, and make a sketch of the accident location. Take photographs (if possible) of damage to both vehicles, note the number of occupants in the other vehicle and record any obvious injuries to themselves and other parties.

6.Contact Risk Management and Insurance Services on (01452) 426754 to obtain an accident report form and to arrange repair of the County Council Insured vehicle.

7.Vehicle repair costs will be paid by Risk Management and Insurance Services; however the establishment will be charged the £200 own damage excess, or all repair costs if below the excess level. Please note that the £200 excess also applies to windscreen damage.

8.Risk Management and Insurance Services will attempt to recover any losses if the other party was at fault.

USEFUL TELEPHONE NUMBER:

RISK MANAGEMENT AND INSURANCE SERVICES Glos. (01452) 426754

Feb 2013

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