news & views - February 2004

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News in brief.
Tree roots tackled as subsidence soars.
Employer's Liability report focuses on rehabilitation.
New forms for school journeys.
How to beat the fraudsters.
Improvements needed in safety.
Handy fact sheet.
Major projects, major risks.
Voluntary organisations assess transport safety.
Parliamentarian of the year.
Managing risk in education.
How do your staff feel about health and safety?
Draft Disability Bill.
Keeping highways clear.
Manual handling issues for refuse collection.
Duty to maintain footways.
ALARM in action.
Zurich to take hard line on suspicious claims to protect public purse.
House of Lords ruling keeps leisure areas open for everyone.
New protocol gives landlords a 'wake up call'.
Avoiding the pitfalls - local authority disaster and contingency planning.
How England's rugby victory could impact on the whole community.

 

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Welcome to the latest edition of news&views

I could not introduce the first 2004 edition of News & Views without wishing everyone a happy and prosperous New Year, even though you may be more focused on your summer holidays by the time you read this.

In the last twelve months there has continued to be rapid change in the complexity and nature of the risks being faced by the public sector. As new risks evolve there is ever-increasing pressure on local authorities to demonstrate sound risk management practises throughout their organisation.

In the wake of major incidents such as September 11, the fuel crisis and regionalised flooding, the boundaries of traditional risk management have expanded. There is now a sharp focus on embedding disaster recovery plans within the public sector’s standard approach to risk management. It is recognised that local authorities can no longer afford (either financially or operationally) to ignore the threat of a major disaster affecting their ability to deliver community services. The development of disaster recovery plans has been brought to the fore with the Civil Contingencies Bill. Our article considers the potential impact that the bill may have on local authorities, emergency services and National Health bodies and highlights the steps that can be taken to develop a successful approach to disaster recovery planning.

Continuing with the theme of risk management, the recurring issue of winter road maintenance continues to provoke debate. The recent change in law will significantly impact Highways Authorities, with the introduction of a new ‘duty of care’ delegating specific responsibilities for keeping highways free of snow and ice. With the new legislation looking to reduce ambiguity around delegated responsibilities we consider the possible implications for Highways Authorities and look at courses of actions that can be taken to ensure that all public sector organisations comply with this change in law.

The opening weeks of 2004 have witnessed further activity in Zurich Municipal’s campaign to combat fraudulent claims. In 2001 fraud cost the insurance industry around £2-£2.5bn for personal lines and motor insurance alone. Add to this society’s growing compensation culture and there is a strong case to suggest that the cost of fraudulent claims will escalate in future years. The financial impact on both insurers and public sector organisations alike is considerable and there is now an increasing focus on implementing processes and procedures which promote the early identification of fraudulent claims. Within Zurich there is now a dedicated Claims Investigation Unit that specialises in investigating suspected fraudulent claims. In addition, Zurich Municipal are working closely with customers not only to raise awareness of the problem but also to provide advice on dealing with fraudulent claims. This issue considers the ‘warning signs’ that could indicate a fraudulent claim and considers a number of basic techniques that can be employed to establish whether a claim is valid.

We are always interested to hear your views on any of the items in News & Views. If you have any feedback please email info@zurichmunicipal.com or contact Paul Allen on 01252 387061. You can also visit our website www.zurichmunicipal.com

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News in breif

HSE claims fines are too low to prevent health and
safety breaches

A Health & Safety Executive (HSE) report is asking what can be done to deter employers from breaching health and safety regulations if existing fines are not working.

According to the HSE’s Offences and Penalties Report for 2002/2003, the general levels of fines remain too low to deter companies from committing serious health and safety breaches.

The report can be seen online, please visit
www.hse.gov.uk

More improvements required for occupational health
says HSC Annual Report

Despite being one of the world leaders on workplace health and safety, more needs to be done to improve occupational health in the UK, according to the Health & Safety Commission’s Annual Report.

The results of the self-reported work-related ill health survey (for national working days lost and work-related ill health) suggest that the scale of the problem is greater than previously estimated.

The national targets for improvement of occupational health are part of the Government’s long-term strategy ‘Securing Health Together’ which aims to:

• reduce the number of working days lost from work-related injury and ill-health by 30% by 2010                 
• reduce the incidence rate of fatal and major injury incidents by 10% by 2010
• reduce the incidence cases of work-related ill health by 20% by 2010
• achieve half the improvements under each target by 2004.

According to the HSC, although most plans within its strategy for improvement have been delivered or are well progressed, the health and safety statistics for 2001/2002 showed little change and have not reflected the hoped-for improvements set by the Government’s national targets in 2000.

The report can be seen online, please visit www.hse.gov.uk

Preventing school roof accidents

There have been a number of instances of children
falling through school roofs while trespassing.

While a school may feel it is not their fault if someone hurts themselves while trespassing, in reality there is a duty on the school and the local education authority (LEA) to take reasonable care to prevent such accidents.

It is therefore in everyone’s interests to review the dangers and risks and take steps to make access to the roof as difficult as possible.

Measures could include:

• anti-climb paint and signs
• roof fencing or tumblers
• removal of bins, benches and other climbing aids such as ledges and low walls
• warning signs
• letters to parents stressing the dangers
• involvement of local community
• raising the issue at assemblies in school
• site security, CCTV, fencing, manned guards, etc.

Many of these measures will also deter arsonists. In 2002 arson cost the country £96.6 million and Zurich Municipal estimates that 70% of its school fire claims are as a result of arson attacks. Thus there is a clear incentive to make unauthorised access into schools as difficult as possible.

Slips and trips

The Health & Safety Executive (HSE) has published a useful, and free, information sheet – HSIS 2. It provides essential information for risk managers, estates and facilities managers, health and safety officers, workers, trade union representatives and others interested in health and safety in health services.

Each year there are more than 2,000 reported injuries caused by slips and trips to people working in healthcare services. Trips account for nearly 62% of major injuries on healthcare premises to members of the public.

The total estimated cost of civil claims for slips and trips injuries to employees and the public in or on NHS premises in England, which were reported to the NHS Litigation Authority over the last four years, exceeds £25 million. Typical claims average around £5,000, but some in the healthcare sector have been as high as £600,000. Increased insurance costs and enforcement of criminal liability can be a further consequence.

These accidents can be cut dramatically through planning and positive management during refurbishment and new build of hospitals and other healthcare premises, together with good housekeeping. Employees should be consulted at an earlystage, as they will have useful experience of areas where problems arise. Accidents are not an inevitable part of the healthcare industry – they can and should be prevented.

Copies of the information sheet HSIS 2 can be  downloaded from the HSE Books website, please visit www.hsebooks.co.uk

Risk assessment pitfalls

A list of common pitfalls in risk assessment has been published by the Health and Safety Laboratory, with advice for health and safety inspectors on how to use this guide when carrying out industry risk assessments themselves.

The report presents 26 case study examples, and highlights several common pitfalls including:

• undertaking a risk assessment to try to justify a decision that had already been taken
• not using the results of the assessment
• only considering the risk from one activity
• failure to identify all hazards associated with certain activities
• inappropriate use of risk criteria
• failure to fully consider all potential outcomes
• not linking hazards with risk controls.

The study reviewed published critiques of general and specific risk assessment methodologies, identified inadequate industry risk assessments in some cases, and reviewed current HSE guidance for inspectors on assessing the adequacy of risk assessments.

Copies of the report are available from HSE Books website, please visit www.hsebooks.co.uk

Ian McNeil, new Chairman of IRM

Ian McNeil, National Risk Manager for Zurich Risk services, has been elected Chairman of the Institute of Risk Management (IRM) for 2004.

A Fellow of the Institute since 1995, and with 21 years’ experience in the risk management and insurance industry, Ian recently re-launched the IRM Associateship Diploma.

“I want to continue the momentum that the IRM has generated over the last two years,” said Ian. “The key things are to keep up the impetus with the educational offering and to look at what other services we can offer members once they are qualified.”

Help to create a new look

We are looking to improve the publications News & Views and Court Circular to ensure that they continue to be relevant and useful for risk managers.

We have commissioned a research agency, IFF, who will be contacting a selection of readers at random this year to ask their opinions on ways in which the publications can be improved. Thank you to those who have already taken part, your feedback is invaluable.

Zurich Municipal Senior Marketing Controller Karen Bigwood explained: “We are reviewing these publications with a view to improving the look, feel and content of them. To do this we’d really like to get an insight into what you, the reader, would like to see in each publication. We will consider all suggestions to see how they could be incorporated into the publications. We would be really grateful for your help but you are under no obligation to participate.”

For further information on the research please contact Amy Harpin on 01252 387792.

UNISON calls for improvement

A report commissioned by UNISON and carried out by
the Centre for Corporate Accountability (CCA) shows
there are vast differences between local authorities
on levels of inspection, investigation, enforcement
and numbers of health and safety inspectors.

The report is a snapshot of the health and safety enforcement activity undertaken by more than 300 local authorities during 1999-2000, the last year with available data. During that year 375 of the 410 local authorities sent in their annual returns to the Health & Safety Executive’s Local Authority Unit.

Key findings of the report include:

• a huge difference between various local authorities in levels of inspection, investigations, enforcement notices and numbers of health and safety inspectors
•  90 local authorities investigated every single reported injury to a worker, while 17 local authorities investigated fewer than 10% of reported injuries.

UNISON has sent a copy of the report to every local authority, and is calling for improvements in inspection and prosecution regimes. The report focuses on the best and worst performing authorities, and can be read at the CCA website, please visit www.corporateaccountability.org

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Tree roots tackled as subsidence soars

The price being paid for the long, hot, dry summer has been an outbreak of subsidence incidents and local authorities have not escaped the problem. Last autumn, Zurich Municipal saw claims increase by more than 100% compared to the same period last year. And according to ALARM, overall subsidence claims are costing in excess of £200 million a year. One of the main culprits for causing subsidence is tree roots, which are responsible for two-thirds of Zurich Municipal’s  subsidence claims. Max Godfree, Claims Controller at Zurich Municipal, explains how the company has been working closely with ALARM to develop a new Tree Root Protocol, designed to help guide local authorities on how to handle tree root claims.

This year has seen an excessively dry summer followed by the driest autumn since 1873.

Statistics from the World Meteorological Office suggest that subsidence ‘event years’, of which 2003 is a prime example, could soon become the norm with soil moisture levels at their lowest for this time of year in 50 years of records.

Local authorities are facing a particularly tough time as they are responsible for areas such roadsides, open spaces, golf courses, parks, cemeteries and buildings, which are all potential risk areas. Some also suffer the added problem of having an abundance of forest trees planted in urban areas by their Victorian predecessors.
Furthermore, they have a potential legal liability to foresee possible subsidence problems and related claims and to manage vegetation in all these areas.

In the event of the worst happening, Zurich Municipal is endeavouring to make the process as painless as possible. A couple of years ago it lead an innovative project to generate an effective management model for insurers to process claims for subsidence damage caused by trees and vegetation under local authority control. This shortened the claims process and slashed the costs of claims by ensuring data is collected and assessed at the earliest opportunity.

Following on from this we have now been working closely with ALARM to develop a protocol that will provide a relatively simple guide for local authorities in dealing with tree root claims. It is believed that proactive action will considerably reduce the costs that have been running into millions each year.

The protocol has been designed to assist local authorities in responding quickly to claims and stresses the necessity for the authority to maintain a dialogue with the resident or his/her representatives. The reason for this is to cultivate a proactive approach, because one of the key tests applied by the courts in deciding on liability is the reasonableness of the parties.

The guidelines follow the projected progress of an example claim, detailing all potential issues and covering all possible eventualities in the form of a series of complaint letters and recommended responses. They explain what action the council should take and include examples of the necessary forms to be completed by the arboriculture officer.

Zurich Municipal is expecting subsidence claims to continue rising into 2004. It is advising local authorities to act quickly and responsibly to minimise the risk of damage. A protocol is being developed with ALARM which will provide a framework for effective response to claims and prevent minor problems from escalating into extremely costly situations.

As well as having the correct procedures outlined for dealing with claims, it is equally important for risk managers to ensure their organisation has a suitable tree management policy in place. If you require advice on this, Zurich Municipal offers a Tree Report service to local authorities which provides:

• evaluation of existing tree management policy and procedures
• analysis of the number and cost of tree claims
• practical guidance on tree management
• recommendations on remedial measures and cost effective loss control measures.

For further information on the subsidence protocol or the Tree Root Report, please email info@zurichmunicipal.com

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Employers’ Liability Report focuses on rehabilitation

Zurich welcomes the final report from the Department for Work and Pensions (DWP) on the review of Employers’ Liability Compulsory Insurance (ELCI).

The Review of ELCI focuses on the rehabilitation of people following workplace accidents or illness, and encourages organisations and businesses to improve their health and safety, risk management and occupational health schemes.

Geoff Riddell, CEO, Zurich UK General Insurance said: “This is a well-balanced and pragmatic report that recognises there are no quick fixes, but commits to change. We are delighted that the DWP envisages a long-term partnership with insurers that over time will, I believe, reform ELCI for the benefit of both insurers and our customers.”

Local authorities, charities and other organisations in the public sector have been particularly affected by the rising costs of employer’s liability cover. Zurich Municipal will continue to advocate the application of risk management processes in public sector organisations as a way of reducing the number of claims.

The Government review, which took place during 2003, was sparked by the external impacts on the insurance market, rising legal costs through ‘no-win, no-fee’ litigation, and uncertainty over the outcome of long-tail risks (eg. occupational illnesses such as asbestosis that develop over many years).

The proposals set out by the DWP include:

• develop pilots to test new ways to resolve claims more quickly and with fewer associated costs
• consider the possibility of fixed-fee schemes for employers’ liability
• work with insurers, business and the Health and Safety Executive to develop an approach to underwriting that better reflects the health and safety performance of individual firms and organisations.

The DWP published an interim report during 2003 which:

• required insurers to provide 21 days notice of renewal
• launched the ‘Making the Market Work Initiative’ to help trade associations and others access the insurance market more easily
• postponed the introduction of the recovery of NHS charges for personal injury claims, including employers’ liability, to November 2004
• reviewed the need to insure for 300,000of the smallest single owner-employer companies
• provided improved guidance and information on the new Small Business Service website.

For a copy of the full report from the Department for Work and Pensions, please visit www.dwp.gov.uk

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Newforms for school journeys

Zurich Municipal has updated its School Journey policy and certificate wordings. From 1 January 2004, underwriting and sales teams will issue this new documentation on a rolling basis to customers. Community, charity and voluntary organisations affected will receive the new forms in a similar way.

Some customers who adapt the Zurich Municipal forms to produce their own branded material need to ensure that the new text is incorporated correctly.

The main points to note are:

• premiums remain unaltered
• clearer instructions on minimum certificate premium and payment request (Certificate page2)
• new exception (viii) under Legal Liability for claims in North American jurisdiction
• new general terrorism exception (2c)
• removal of ‘motor cycling’ from examples of hazardous activities since it is excluded anyway
• update of complaint procedure
• forms are now current for journeys commencing on or before 1 January 2005, and 1 April 2005 for winter sports trips.

Many corporate customers that hold blanket policies with Zurich Municipal to cover school journeys and use Zurich Municipal’s individual forms to publicise and administer the cover with their schools; and school customers will use the forms in a similar way with individuals.

For further information please email info@zurichmunicipal.com

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How to beat the fraudsters

In 2001 fraud cost the insurance industry around £2-2.5 billion. As this figure is based on personal lines and motor insurance only, with no figures currently available for claims for thirdparty and employers’ liability, it is reasonable to assume that the real costs are much higher.

Whilst the majority of claims are legitimate and reasonable, following unfortunate incidents and accidents, it is increasingly clear that public organisations are seen by some people as relatively easy targets for fraudulent claims. Such is the concern that Zurich Municipal is working with customers to help them prepare their staff to combat the growth of such fraud.

Many fraudsters are opportunist and may not have deliberately set out to make a claim, but simply did so when the opportunity arose. They may reveal their inexperience through ignorance of the processes and complexities required to make a claim. Premeditated fraudsters tend to be very well prepared, therefore better equipped to deal with more searching enquiries and are rather more difficult to successfully contend with.

Identifying fraud is not always easy, but claims handlers can learn to spot potentially suspicious claims by being alert to typical warning signs and to take heed of one of the most reliable fraud indicators available; good old fashioned ‘gut instinct’.

Alarm bells should ring if the circumstances leading to the accident sound implausible, if the claimant is vague about the details of the actual incident and if there are inconsistencies in the story.

If valid suspicions are raised, the information needs to be very carefully checked. You are advised to write to the claimant to probe the story further and check with the relevant department to see whether the circumstances surrounding the claim are feasible.

It may be necessary, or more appropriate, to speak to the claimant by phone. In such circumstances, the claims handler should be prepared for the conversation with the relevant documentation to hand and be clear about the questions that need to be asked and how to probe further. It is important to remain firm, but not aggressive, encouraging the claimant to explain clearly the details of the incident and then to corroborate them.

Opportunist fraudsters are rarely very well equipped to handle queries relating to their claims and often engaging such claimants in a telephone conversation can prove very effective. A simple but effective telephone tactic is to ask a claimant to repeat the version of events surrounding a claim twice. Claimants presenting details of genuine incidents and losses are ordinarily able to do so without difficulty. On the other hand, the dishonest element who are not well versed in pursuing fraudulent claims frequently display some difficulty in repeating the circumstances surrounding an incident or loss, unless they possess the fraudster’s key ingredient; an impeccable memory.

If suspicions are aroused about the validity of a claim, important clues may be contained in documentation supplied. For this reason, only accept originals, not photocopies, and then check for inconsistencies, such as whether the dates on an invoice tie-up with the date of the accident or time repairs were claimed to have been completed. Consider whether the invoice could have been completed on a home computer, and whether any VAT claim is legitimate.

The validity of VAT Registration Numbers can be simply checked online, please visit here.

If documents are presented in support of a suspect claim and a claimant is very anxious for their return, ensure they are clearly marked in some manner, confirming that they have been presented in support of a claim. This very simple step will assist in preventing claimants pursuing fraudulent claims, from using the very same documentation again for duplicate claims.

Genuine claimants are likely to feel anxious and possibly aggrieved but are more likely to want to co-operate with reasonable requests for further information than those with fraudulent claims. Therefore if a third party is unreasonably reluctant or unwilling to attend a medical examination or meeting, does not wish to sign a statement or who can only provide family as witnesses to the accident, suspicions should be aroused.

Dealing with potential fraud requires sensitivity and experience, but the vigilance is well worth the effort because fraud not only costs the insurance industry, it also deflects public money which could be spent directly on front-line services.

The key to successfully defeating fraudulent claims is early identification in their life cycle and prompt removal from the routine processes applicable to handling spurious claims. Fraudulent claims need different handling and approaches, but the quicker they are identified, the greater the chance of success.

Glen Marr, Fraud Liaison Manager for Zurich, said, “Within Zurich, we have our own dedicated Claims Investigation Unit, who work closely with customers to investigate suspected fraudulent claims. Our own in-house specialist resources to identify and investigate claims fraud are currently being enhanced.”

Glen, who is also part of the ALARM special interest group who are looking at public sector fraud, added: “Zurich Municipal takes claims fraud very seriously and, working closely with our clients, we will continually strive to prevent fraudsters being successful in their ventures.”

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Improvements needed in fleet safety

Up to a third of all road traffic accidents in the UK involve somebody who is working at the time, possibly accounting for more than 20 deaths and 250 serious injuries every week. More employees are killed or seriously injured as a result of road accidents than all other causes put together.

Recent publications including the Health & Safety Executive (HSE) guidance sheet for fleet managers and others who are responsible for staff who drive, or ride a motorbike or bicycle at work, and ‘Business and Fleet Car Risk Assessment’, a recent report by Prof. Peter Cooke of Nottingham Trent University, have brought this issue to the attention of fleet managers and company directors alike.

Health and safety law applies to on-the-road activities as well as all work activities, and the risks to all road users, including people who may be put at risk by work-related driving activities, must be managed effectively within a health and safety management system.

Andy Price, Zurich’s Lead Practitioner for Motor Fleet, said, “For many people, driving is probably the most risky work activity they will undertake. Improved fleet safety has many potential benefits for employers, including legal compliance under health and safety regulations, and a reduction in costs.”

Fleet safety should be integrated within organisations’ wider occupational health and safety systems and procedures. Managers, supervisors and work allocators, and drivers all need to be involved in a culture of safety on the road, and people who are enthusiastic about safety should be championed.

Organisations should be proactive in managing their fleet safety as a key element of their health and safety policy.

This includes assessing:

•  the driver: competency, training, fitness and health
• the vehicle: suitability, condition, safety equipment, safety critical information, ergonomic considerations (such as driving posture)
• the journey: routes, scheduling, time,  distance, weather conditions.

‘Business and Fleet Car Risk Assessment’, a recent report by Prof. Peter Cooke of Nottingham Trent University, concludes that boardroom attitudes to driver and fleet safety need to change.

Efficient risk management programmes need to be an integral part of ongoing business strategies, and a climate of safe driving needs to be supported by leadership – and led by example.

Prof. Cooke warns that inaction by management could precipitate high-profile legal action involving the directors of large organisations, possibly leading to
custodial sentences.

Free single copies of the HSE guidance sheet (ISBN 0 7176 2740 3) and packs of four to buy are available from HSE Books, please visit www.hsebooks.co.uk

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Handy fact sheet

Healthcare workers, cleaners and kitchen staff are among the high risk groups most likely to be affected by skin problems caused by the materials they use at work.

The European Agency for Safety and Health at Work has produced a fact sheet for employers which provides an overview of occupational skin problems caused by common skin sensitisers, and recommended actions to prevent them occurring.

Healthcare workers can be affected by rubber latex proteins, rubber chemicals, antibiotics and formaldehyde. Cleaning staff may be affected by  materials that contain disinfectant, fragrances and the industrial enzyme Protease. Kitchen staff are likely to come into contact with foodstuffs which can cause skin problems.

The fact sheet alerts employers and managers to the causes and symptoms of occupational skin problems caused by skin sensitisers. Symptoms may include dryness, redness and itching of the skin. Hands and forearms are the most commonly affected areas, but the conditions can spread. High-risk workers are usually those people who are regularly exposed to liquids and using water, which can break down the skin’s natural defence barrier. The fact sheet is available from the agency’s website, please visit www.agency.osha.eu.int

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Major projects, major risks

Delivering services to the public on tight budgets, with limited skills and resources, and against a backdrop of rising expectations and complexity, can be difficult at the best of times. When you add into the equation the major projects and initiatives that public service providers are expected to be involved in, the picture becomes more complicated still. Tilden Watson, Principal Consultant, Zurich Municipal Management Services looks at the issues.

With the additional complications come significant additional risks. When you consider that many of these projects and initiatives have budgets of tens, if not hundreds of millions of pounds, the result can be potentially catastrophic. In addition, the profile of the projects, and the hopes and reputation of the council, become intertwined.

The issue of the project-cost overruns that unmanaged risks can cause is in itself a cautionary tale. Consider the new Scottish Parliament building, with an original cost estimate of £40 million. The current actual cost is £400 million. Similarly, the British Library went over budget by a factor of almost seven. The cost rose from £74 million to £511 million.

But cost is just one visible consequence of a failure to manage project risk adequately. Getting it wrong can also mean everything from delays and performance problems, through to damage to the reputation of the whole organisation and to external relationships. Ultimately, the project itself could fail, affecting service delivery beyond the scope of the project itself.

A recent workshop for members of the Chartered Institute of Public Finance and Accountancy (CIPFA), run by Zurich Municipal Management Services, highlighted some of the key issues affecting projects in the public sector.

One of the key issues identified was that of staff capacity. As the number of projects and initiatives requiring management grows, the number of staff with the necessary project management skills working in public sector organisations is either remaining static or dwindling. This leads to the risk of overload and a consequent lack of attention to detail.

Many projects also require a solid business case to be established before they can commence. If this is not carefully put together and scrutinised by staff with the necessary skills and experiences, the business case can end up full of holes. For example, a leisure contract where the public sector partner allowed private sector contractors to proceed on the basis of unrealistic estimates of demand. In this case, although the contractor may bear the short-term pain, if the company goes bust under the strain the local authority will end up having to pick up the pieces.

Where local authorities are involved, major projects also have a significant impact on local communities. Thus, stakeholder buying can be a very important factor. Take the example of a big road scheme, where a challenge from one or more third-party organisations has a high chance of success. In many cases, for a major infrastructure project like this, a wide range of the organisation’s other plans may depend on the success of this one project. It is therefore crucial that the risk of significant stakeholder objections is factored in to any project plans.

In the public sector, political risks also need to be considered. Political leaders have electorates to please, and personal agendas to fulfil. On some occasions, these factors can lead to too much being promised before the budget has been secured, leading to a mismatch between funds and expectations. On others, significant expenditure can be committed to a project, only for priorities to change and the plug to be pulled.

Zurich Municipal Management Services estimates that 75% of local authorities are engaged in major projects or initiatives that create strategic risks capable of having a critical or catastrophic impact if they are not managed. But the impression remains that  not enough is being done to manage risks associated with these projects.

The issue is not the capability of the staff in the sector. Instead, public service providers are exposed to the risks associated with projects by a combination of ‘initiative overload’ and a shortage of staff with the right mix of project management skills. In addition, all too often the senior decision makers do not heed the warnings they are being given.

If crises are to be avoided, local authorities need to invest time and effort in assessing the risks around major projects, and ensuring they have sufficient capacity to manage these risks. Most local authorities have high-calibre staff capable of managing a major project. What is less clear is whether sufficient attention is paid at the inception of any given project to whether or not the required capacity is available over the time span of the project. And it is at the inception of the project that attention does need to be paid, for as a project progresses, the ability to influence the risks diminishes, and the potential impact of a risk that has not been factored in increases.

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Voluntary organisations assess transport safety

Voluntary organisations that provide transport services will find ‘Managing occupational road risk in voluntary organisations’, a new publication from the Royal Society for the Prevention of Accidents(RoSPA), essential to help them manage and reduce risks associated with their operations.

Zurich has been involved with the RoSPA project Managing Occupational Road Risk (MORR) since its inception, and supports the project’s aim to help voluntary organisations.

The MORR steering group created a project to develop, run and evaluate a pilot scheme designed to help voluntary organisations assess the safety of their road transport operations, and to identify measures that can be adopted to manage and reduce or eliminate those risks.

The subsequent report of the pilot study points out issues that are specific to voluntary organisations. These include:

• the age and physical ability of those being transported. Consideration needs to be given to how such passengers would escape from a vehicle in the event of an accident
• the effect an accident may have on a voluntary organisation’s reputation, and the repercussions this could have on other voluntary organisations operating in a similar capacity
• criminal and civil liabilities that may result if drivers and organisations do not ensure that risks are reduced as far as is reasonably practicable.

These are all reasons why voluntary organisations supplying transport must ensure that they have structures and policies in place to protect staff, volunteers and clients who use their services. The most cost-effective and efficient way to do this is to address it in the same way as other health and safety at work issues.

Voluntary organisations that require their staff or volunteers to drive as part of their role, must have in place a systematic approach that:

• identifies hazards
• assesses the risks
• implements suitable risk control measures covering driving.

The materials in the report have been trialled and evaluated by a small group of voluntary organisations, and information on their experience can be found in the appendices.

Copies of the report (ISBN 1 85088 043 3) can be obtained from RoSPA, Edgbaston Park, 353 Bristol Road, Birmingham B5 7ST. Tel: 0870 777 2171, or 0121 248 2001 or downloaded free from their website, please
visit www.rospa.com

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Parliamentarian of the Year

The Zurich/Spectator Parliamentarian of the Year
is Conservative leader the Rt. Hon. Michael Howard QC MP.

 Sandy Leitch, CEO of Zurich Financial Services in the UK, commented at the ceremony in November: “Zurich
co-sponsors these awards to encourage political debate of the highest standards of professionalism across the political arena.”

Last year a new Zurich Award 2003, created to signal the appreciation by current parliamentarians for the most notable parliamentary performers during the past 175 years, was given to the family of the late Iain Macleod, the former Chancellor of the Exchequer who died in office in 1970.

Zurich/Spectator Parliamentarians of the Year Award winners are:

Parliamentarian of the Year:
The Rt. Hon. Michael Howard QC MP

The Zurich Award 2003:
Iain Macleod MP

Speech of the Year:
The Rt. Hon. Robin Cook MP

Peer of the Year:
The Rt. Hon. Lord Strathclyde PC

Backbencher of the Year:
Ann Clwyd MP

Minister to Watch:
Christopher Leslie Esq MP

Survivor of the Year:
Crispin Blunt Esq MP

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Managing risk in education

Education authorities need to be aware of the issues that could affect future claims for ‘Failure to Educate’, and take steps to minimise the risk of such claims being made.

Failure to Educate was one of several issues about managing risk in education discussed at a seminar organised by Zurich Municipal and Berrymans Lace Mawer (BLM). Other topics included bullying, workplace stress and school trips.

The ‘Failure to Educate’ session included an explanation by BLM education specialist Brian Goodwin on the way that case law has developed, culminating in the case of Phelps v London Borough of Hillingdon (House of Lords 2000).

The important speeches came from Lord Nicholls, who held that teachers owe duties of care to all pupils, and Lord Slynn, who held that those exercising a particular skill or profession owed a particular duty to those to whom injury can be foreseen, if due care and skill are not exercised. Their judgment warned, though, that generalised claims for education malpractice were unlikely to succeed. This has helped to stem the flow of claims that followed this case.

Brian Goodwin outlined the facts associated with this case, and described how authorities could defend educational negligence claims. He warned that, in future, education authorities may not only be vicariously liable for the acts and omissions of their professional employees, but also directly liable if the exercise of their powers in a particular way foreseeably causes injury
or loss.

Mick Flannigan, Zurich Municipal’s Senior Claims Controller, reported that although the Phelps case had “opened the floodgates of claims”, solid resistance had ensured that many such claims had been fought off.

He advised education authorities to forestall successful claims by:

• creating clear policies for standards of care with consistent guidelines for implementation
• using communication plans for subsequent changes
• ensuring good record-keeping.

Zurich Municipal is currently the claimhandling agent for more than 500 claims of ‘Failure to Educate’, many of which have been lodged by people who were at school more than a decade ago, and the majority of these apply to policies that were issued by Municipal Mutual Insurance.

The seminar also looked at the increasing incidence of bullying claims. Analysis of successful claims and defences has shown how to risk manage this area. Schools should use the Department for Education and Skills (DfES) guidance issued in September 2003, to create anti-bullying policies and follow the guidance on recording and responding to complaints about bullying. Please visit www.dfes.gov.uk/bullying

Mick Flannigan led the session on stress claims in the education sector and focused on how to prevent claims being made in the first place, as well as looking at past cases to identify measures that authorities should take.

He warned that the Health and Safety Executive (HSE) is increasingly likely to prosecute education authorities if health and safety problems are not addressed properly.
The HSE is carrying out national research to establish management standards to prevent workplace stress, and has recently published guidance called ‘Real Solutions, Real People’. To view this please visit
http://www.hse.gov.uk/stress/issues.htm

School trips
The health and safety of pupils on school trips has been brought into focus as a result of tragic incidents in recent years where pupils have died while on supervised outdoor curricular visits. Updated guidance on Health and Safety of Pupils on Educational Visits (HASPEV) can be found on www.teachernet.gov.uk/visits.
Implementation of this guidance should reduce the number of tragic accidents and schools’ vulnerability to prosecution or liability.

Zurich Municipal and Berrymans Lace Mawer has produced a suite of reports from the seminar, for further information please email info@zurichmunicipal.com

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How do your staff feel about health and safety

A health and safety questionnaire to all or selected local authority staff is the key component of the new Zurich Municipal Health and Safety Perception Survey.

 The perception survey is designed to find out whether health and safety policies are understood and acted upon by managers and individual members of staff. The new product has been designed in response to customers who felt the old health and safety audit, which included interviewing selected managers and staff in a number of departments, was time-consuming and did not necessarily provide an accurate assessment of the organisation.

The survey will also include an office-based review of the current corporate documentation, practices and procedures

Zurich  Municipal Loss Control Services Manager Ian Gammans said, “Following feedback from customers and the need to respond to Health & Safety Executive requirements, we felt a perception survey was a better way of providing a much more accurate picture of the real health and safety situation within the organisation.

“So far the feedback has been positive. The belief is that questioning the whole staff provides a true reflection on how health and safety issues are dealt with in reality, involves every one in the process and raises the profile
of the issue.”

Sandra Cox of the Central Safety Advisory Service at Cambridge City Council said, “The recent perception study carried out by Zurich Municipal on our behalf was invaluable in providing key and relevant information on where we are in respect of our management of health and safety.

“The study provided us with the same quality of information I would have expected from a traditional audit, but with the added bonus of knowing what many staff at grassroots level thought about particular health and safety issues and their management. I had an idea of where we were, and the audit confirmed the areas requiring attention as well as giving credit to good work which has been done already”.

For further information on the new health and safety perception survey please email info@zurichmunicipal.com

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Draft Disability

Bill The Draft Disability Bill, published in December 2003, will be subject to pre-legislative scrutiny by a
Parliamentary Committee.

The Draft Bill extends the current Disability Discrimination Act, and contains provision for legislation to serve the civil rights of people with disabilities, remove areas of discrimination as well as bring practical benefits to disabled people. It also provides for the creation of a Disability Rights Commission and would bring into force (in October 2004) the duties in the Disability Discrimination Act concerning service providers making reasonable adjustments to physical features of their premises.

It brings within the scope of the Disability Discrimination Act more people who have been diagnosed with the progressive conditions of HIV, MS and cancer. It will enable people with disabilities to challenge discrimination when renting property, and in their dealings with landlords and managers of rented premises.

It provides for legislation to end the current exemption small firms have in the employment and training provisions for people with disabilities, and introduces further measures proposed in the Department for Work and Pensions’ document ‘Towards Inclusion’. Those measures would further extend and strengthen the rights of people with disabilities, and place significant new duties on public bodies, transport operators and many others.

It will cover almost all activities of the public sector, including such functions as issuing licences, and put a new positive duty on public bodies to promote equality of opportunity for people with disabilities.

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Keeping highways clear

Winter weather brings with it extra hazards and risks to people, vehicles and buildings. This year, in addition to the weather, comes a new law which requires Highway Authorities to keep highways clear of ice or snow.

Highway Authorities now have a specific responsibility to ensure, ‘so far as reasonably practicable’, that safe passage along a highway is not endangered by ice or snow.

Zurich Municipal advises that in this instance the term ‘highway’ means roads, footways, footpaths, and pavements.

The new ‘duty of care’ responsibility for Highway Authorities is section 111 in the Railways and Transport Safety Act 2003, which was passed on 31 October 2003, and is now embedded in the Highways Act 1980 as section 41 (1A).

The new legislation removes any ambiguity, which had arisen since the Goodes v East Sussex case, with regard to what the Highway Authority is and is not responsible for gritting. For further information on the Goodes v East Sussex case please email info@zurichmunicipal.com

Zurich Municipal is recommending Highway Authorities to consider the implications of this new piece of legislation
carefully, and carry out rigorous risk assessments for the highways, which could be affected by accumulations of ice or snow.

As a minimum, authorities should review and re-assess their procedures to validate the ‘reasonably practicable’ approach that they intend to take.

Risk-assess, prioritise, plan and monitor
Roger Lloyd, Zurich Municipal Loss Control Consultant advises: “A plan should be produced based on risk assessment and analysis. The plan should be achievable, and authorities should be prepared to be able to prove they have achieved it. It is no longer acceptable to have no plan and no arrangements in place. Courts will expect some action from the authority to clear ice and snow within what is ‘reasonably practicable’.

“They may be more willing to accept that risks have to be prioritised – provided authorities can show that they have followed a risk-assessed approach. Courts may even accept that authorities have a finite budget, provided the mechanism that was used to establish the prioritised spending of that budget is clearly identified in the plan, which must be easily achievable. Any Highway Authority that has a plan and then doesn’t achieve it is risking costly claims against them”.

Zurich Municipal advises Highway Authorities to keep a careful watch on weather forecasts, making sure they have men, materials and machines on standby if freezing temperatures develop. There must be a sensible and achievable system of priorities because not all paths and roads can be gritted at once. Authorities will be expected to demonstrate to a court that they weighed up all the options in deciding how best to allocate their resources.

Many Highway Authorities have already carried out their risk assessments and may have prioritised the areas they expect to focus on including major roads, routes used by commuters, and roads and paths used to access schools. The new legislation means that this risk assessment needs to be reviewed and re-prioritised to take account of the new requirements.

“The provable monitoring of the system (i.e. that it does work) is very important,” said Roger Lloyd. “For example, if authorities need to carry out work that involves external contractors, they must have a process which shows clearly the way in which those contractors are monitored to make sure the work is being done as per the specification.

“This means that authorities should ensure that they have a robust contract which sets out liability aspects, so that if a claim occurs because the gritting or clearing of ice and snow has not been done as requested, or not done properly, then the contractor will have to deal with the claim.”

Although not actually affected by the new legislation, it makes sense for operators of car parks, unadopted roads or paths to be aware of the changes. Of course, most relevant to them is the Occupiers Liability Act of 1957 which states that they have a “common duty of care” to take reasonable care to ensure that their premises are reasonably safe for the purpose for which any visitor has been allowed entry.

Once again, the focus has to be on prioritisation because it may not be possible for authorities to grit all car parks and unadopted highways. There must be a sensible system of priorities created by assessing the risks in the main areas and walkways to them. If a contractor is being used then the contract should set out the agreed procedures and standards and cover the liability aspects.

“To meet this duty of care they should carry out a risk assessment,” explains Roger, “deciding on the appropriate level of action required, when and how inspections will be carried out, record the decision and if necessary publicise it to the community.

“They will not necessarily be expected to grit roads, footpaths and car parks. The phrase “as far as is reasonably practicable” could mean, for example, that a small parish council whose only employee is a part-time clerk, could not be reasonably expected to grit car parks within their jurisdiction or even have the budget so to do. It may be appropriate instead to place warning notices, close car parks or advise the public that they will not be gritting.”

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Manual handling issues for refuse collection

Local authorities, refuse collection contractors and refuse collection staff representatives are  recommended to consider a report by the Health & Safety Laboratory (HSL) on the manual handling issues in refuse collection.

Refuse collectors lift and carry sacks of domestic rubbish which entails stooping and twisting postures while walking, and throw the sacks (most weighing up to 6 kg) into refuse vehicles at heights above their shoulders. These movements can result in musculoskeletal disorders.

The HSL has reviewed scientific literature on manual handling operations in refuse collection; identified risks for musculoskeletal disorders in refuse collection; and given recommendations for ways to reduce them.

For a copy of this report, please write to the Health & Safety Laboratory Broad Lane, Sheffield S3 7HQ or telephone 0114 289 2000.

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Duty to maintain footways

The maintenance of footpaths, pavements and footways, especially those within areas of housing, is becoming increasingly important for local authorities and other organisations with a responsibility to maintain footpaths on their property.

Most of these paths, which are used by the public, are subject to the requirements of the Highways Act, which means that councils have a more onerous duty to inspect and maintain them, to prevent people tripping and having accidents because of poor maintenance.

Following the Gulliksen v Pembrokeshire County Council case, local authorities in England and Wales should review all their highways to identify any additional paths, pavements and carriageways which are adopted, but may not have been recognised as such prior to the judgement.

Transferred housing stock
It is also important to review pathways and adopted highways associated with transferred housing stock. All highways, which had been maintained at public expense under the Highways Act of 1959, continue to be maintainable under the 1980 Highways Act. This applies to former council housing stock built under the Housing Act 1957.

New transfer agreements for housing stock should include information about liability for the inspection and maintenance of highways and paths in future, and a clear indemnity provision.

Unitary authorities that were not responsible for footpaths, pavements and footways built by the previous Highways Authority, usually a county council, may be surprised to find out that under the Highways Act they have an extended duty to maintain them, even if they did not build them.

Local authorities need to establish suitable arrangements for inspection and maintenance to meet the requirements of the Highways Act, and enable Zurich Municipal to be able to defend any claims.

Scottish local authorities are in a different position. The Roads (Scotland) Act 1984 is the equivalent of the Highways Act north of the border. Within this act Scottish councils have greater discretion as to what they are required to do and as Gulliksen does not affect them the requirements are less likely to cover pavements and footways on housing estates. Generally there is a greater reliance on Common Law, what is general or standard practice among other local authorities, and what is reasonable.

This does not preclude any claim against a Scottish local authority for poor maintenance leading to an accident on housing paths. Each case will be considered on its own merits, including the nature of the path, who uses it and any tenancy agreements that may be in place.

The risk management implications for Highway Authorities after a man tripped over a one-inch raised lip on a manhole cover.

The Gulliksen v Pembrokeshire County Council case makes all Highway Authorities in England liable for the maintenance of footpaths, footways and pavements which may previously have been considered ‘unadopted’ because they form part of housing estates.

In May 1999 the claimant was walking with a friend along a footpath on the Mount Estate in Milford Haven when he tripped on a one-inch raised lip on the edge of a manhole cover. He injured his left elbow in the fall, and sued Pembrokeshire County Council; damages were agreed at £3,000.

The case was appealed and the ensuing judgment at the Court of Appeal in July 2002 found that: “the paths were dedicated from the start as highways in the common law”.

Alan Hunter, Technical Claims Manager, added: “It appears by the date when s.36 (1) of the Highways Act 1980 came into force, the path we are concerned with was already a highway maintainable at public expense by virtue of s.38 (2)(c) of the Highways Act 1959.”

The implications of the Gulliksen case for Highway Authorities are:

• footpaths on housing estates built under either Part II of the Housing Act 1985 or Part V of the Housing Act 1957 are highways maintainable at the public expense
• footpaths may become highways by dedication – 20 years’ uninterrupted use by the public
• Highway Authorities will need to implement s.58 inspection regimes for what was formerly considered a housing responsibility
• more claims will be redirected from housing estate footpaths.

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ALARM in action

By Bob Cope, ALARM Chairman

With the Fire and Rescue Service shifting its focus towards preventing fires and ensuring they have  enough resources in the right place at the right time to deal with fires and other emergencies, public service organisations need to review and revise their own fire risk assessments.

Following the Bain Review and the recent White Paper ‘Our Fire and Rescue Service’, every Fire Authority is producing an Integrated Risk Management Plan that details how they will operate the service to meet future demands.

It is vital for organisations which have major property exposures, particularly where that property is unoccupied for significant periods, to carry out full fire risk assessments and review the protective and preventative measures they have in place to ensure that their own risk management strategy fully reflects this new approach.

In particular education authorities need to look at protecting schools and colleges from arson and accidental fires; health authorities must assess their fire prevention and protection measures in hospitals and primary care centres; and social landlords need to review their fire protection in houses of multiple occupancy.

Risk managers who are going to have to assess their fire protection and prevention measures will find the AIRMIC/ALARM/ IRM Risk Management Standard a useful
tool. The process outlined in the Standard is now incorporated within ALARM’s ‘Managing Risk in the Public Sector’ training course.

The standard gives users a framework to incorporate risk management into their business planning at an early stage. Following its launch 12 months ago, the standard is now translated into six European languages, and linked to ALARM’s education and training offerings, as well as to the revised syllabus of the Institute of Risk Management (IRM).

The IRM has re-launched its Associateship Diploma, which was developed following consultation with risk management professionals. The programme delivers five new core subjects, which map directly to the risk management process as defined in the Standard. Along with ten specialist subjects and a new student support package, there are also the first three of a new range of textbooks which detail the principles set out in each core part of the Standard’s risk management process.

AIRMIC has been working to ensure that the standard has received widespread acceptance throughout Europe amongst business risk managers. Together with the Federation of European Risk Management Associations (FERMA), it is working to develop a basic risk management course.

Share your achievements by entering the ALARM Award Scheme
If you believe that you have created an innovative solution to a risk management problem, achieved success through partnership with other organisations or agencies, or your organisation has taken risk management to the heart of its culture, you could be in line for an ALARM Award in 2004.

To find out more about the scheme, please visit www.alarm-uk.com or telephone the ALARM administration office on 01395 223399. Entrants must register their full entries by the end of February 2004.

Now in its tenth year, the Award Scheme has enabled many people to achieve recognition for their risk management efforts and initiatives, and the benefits these have provided to their organisations.

No initiative is too small; in fact, the smaller schemes are often the ones that make the most difference. Judges for the Award Scheme look for innovative approaches and tangible benefits, irrespective of size or resources.

About ALARM
The national forum for risk management in the public sector represents over 1,300 members across the UK public sector. Bob Cope can be contacted on 01494 459166 or email ch.exec@alarm-uk.com

ALARM’s twelfth Annual Conference will take place 28-30 June 2004.

To register, please telephone the ALARM admin office on 01395 223399. At the beginning of January 2004, Sheila Boyce left her position as Chief Executive of ALARM.

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Zurich to take hard line on suspicious claims to protect public purse

Zurich Municipal is assuring local authorities that it will thoroughly investigate claims that appear to be spurious, exaggerated or fraudulet, following the out-of-court settlement in which a man was forced to repay compensation he received for an injury that was allegedly sustained on public land.

The claimant in the case of Prentice v East Cambridgeshire District Council was originally awarded £238,000 for a fractured ankle, which he had claimed was caused by a hole in the ground on the council’s land.

Five years later, reports in the local press concerning the award prompted a number of the claimant’s neighbours to come forward as witnesses to the accident. They were able to bring a new dimension to the situation and stated that he did not sustain the injury because of a pothole, but because he was play-fighting with his stepson. The neighbours had originally not been aware that Mr. Prentice was pursuing a claims to protect claim against the council as only one witness was asked to come forward to give evidence, even though the accident had been witnessed by a number of people. The witness was later exposed as a close friend of the claimant.

 As the council’s insurers, Zurich Municipal took the fresh evidence to the Court of Appeal after being involved in considerable liaison between the police, the Claims Investigation Unit (a specialist internal unit), the additional witnesses and East Cambridgeshire District Council. As a result, the Court of Appeal instructed the case to proceed to a retrial.

In light of this turn of events Mr. Prentice agreed to repay his award plus four years’ interest rather than going to another trial. Zurich Municipal is currently drawing up orders to ensure that his assets are converted to funds and repaid as soon as possible, but it has already paid out around £100,000 in costs that are not recoverable.

“This case really did rely on the actions of the local community and we have conveyed our sincere thanks to those new witnesses that came forward,” said Alan Hunter, Technical Claims Manager for Zurich Municipal. “The results of this case demonstrate clearly that suspicious claims against councils will always be thoroughly investigated and any individuals found to have taken advantage of a system, that is in place to
compensate genuine claims, will be required to pay back any damages they have received plus interest. The combined efforts of all those involved led to an extremely successful outcome.”

Councils and their insurers have seen a huge increase in claims over the past few years due to the growing compensation culture and many legal firms offering ‘no-win, no-fee’ services. Zurich Municipal is taking a firm approach to these types of claims to ensure that valid claims are properly compensated whilst protecting taxpayers’ money and keeping insurance premiums as low as possible for councils.

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House of Lords ruling keeps leisure areas open for everyone

A landmark ruling by the House of Lords has overturned a decision that could have forced local councils to block public access to areas of leisure space across the country.

The case of Tomlinson v Congleton Borough Council & Others 2003 arose from an incident in 1995 where a man plunged into a lake and hit his head on the bottom, causing serious spinal injuries that left him in a wheelchair. Although notices had been placed around the lake warning that the water was dangerous and it was forbidden to swim in it, a claim against Congleton Council was pursued in the belief that it should have taken more steps to protect the public.

Congleton Borough Council had periodically handed out leaflets warning against swimming in the lake, but several incidents occurred where swimmers also struck their heads on the bottom of the same lake. In 2002, the Court of Appeal ruled that the council had some duty to protect the public and should have made the beaches around the lake safer. Because of this ruling, the prospect of local authorities having to fence off every lake and pond in Britain was looming.

In November 2002, permission was granted for Zurich Municipal to take a petition to the House of Lords to give a final ruling and in July 2003 the appeal was upheld by a unanimous decision. The outcome of the ruling was that:

• the risk to users arose from engaging in dangerous activity and not from anything done or omitted to be done by the Council
• the claimant was a person of full capacity who voluntarily engaged in dangerous activity by diving into an unknown depth of water
• making the lake safer would have prevented the majority of people from enjoying normal activities that were permitted on the land, to protect those people that were putting themselves at obvious risk.

The final outcome of this case has significant implications for land occupiers and defends the rights of responsible individuals to enjoy public spaces without imposing strict safety regimes on them. As a result, local authorities and other occupiers of land have no duty under the law to protect persons of full capacity from injury if they are voluntarily and irresponsibly subjecting themselves to obvious danger.

“Although we would like to extend our sympathy to Mr. Tomlinson for the injuries he has suffered, we welcome this ruling as a common-sense judgment and it will reassure landlords as to the extent of their duties,” said Alan Hunter, Technical Claims Manager for Zurich Municipal. “This case could have had far-reaching influence over the public’s access to beauty spots and other amenity areas if it had been allowed to stand. The case also sends out a clear message that people are expected to take responsibility for their own actions, where appropriate.”

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New protocol gives landlords a ‘wake-up call’

Housing disrepair has become a big issue for social landlords, with some being hit quite hard by ‘claims-farmers’ and local solicitors. The new Housing Disrepair Protocol, which covers England and Wales only, was published in the summer and incorporated into Civil Procedure Rules in December.

The protocol should enable landlords to prevent litigation, and provides a process and timetable for the efficient management of proceedings where litigation is unavoidable.

However there are practical considerations, notably the short response timeframe for landlords, which many might find hard to achieve. Failure to respond within the 20-day timeframe could open the door for pre-action disclosure applications.

A further important practical point in the protocol is that where the landlord is not an individual, a person should be designated to act as the point of contact for the tenant as soon as possible after the landlord receives the first letter from the tenant or their solicitor. That person’s name and contact details should be sent to the tenant and their solicitor as soon as possible after the appointment is made.

The new Housing Disrepair Protocol sets out preaction (pre-litigation) rules for the handling of the housing disrepair cases. For the purpose of the protocol, a disrepair claim is a civil claim arising from the condition of residential premises. It will generally cover claims under s. 11 Landlord and Tenant Act 1985, s. 4 Defective Premises Act 1972, common law nuisance and negligence, and those claims brought under the express terms of a tenancy agreement or lease.

These claims can be made by any person, not just tenants; eg. visitors and members of the tenant’s family. However a claim for personal injury as a consequence of housing disrepair should still be dealt with under the Personal Injury Protocol.

The purpose of the new Housing Disrepair Protocol is to:

• avoid the need for litigation where possible
• encourage the exchange of early and full information about prospectve claims
• enable landlords to manage litigation efficiently.

The protocol formalises the actions for tenants and landlords to carry out, and introduces cost penalties if processes and claims are not completed within the time periods in the protocol. It also allows the landlord to make a written request for extra time if necessary, and many organisations should consider taking advantage of this.

Another way of buying more time to deal with a protocol claim is to offer alternative resolution procedures such as repairs, complaints and/or arbitration proceedings, and the Right to Repair Scheme which is suitable for small, urgent repairs of less than £250 in value.

Under the protocol, tenants and their solicitors have to provide more and better information about their complaints, and there is an onus to agree a suitable expert to validate the claims.

The instruction of a suitable expert is an important aspect because they have to consider all aspects of the property, not only the current condition of the premises but also the nature of the property and the standards in place when it was constructed.

For a full copy of the Housing Disrepair Protocol,including guidance notes, annexes and specimen letters please visit www.dca.gov.uk

What can landlords do now?

• use the protocol – the courts expect it
• investigate promptly
• keep records of all oral and written communications, take photos/video to back up your report
• repair what you are supposed to – quickly
• tighten up your Repairs Reporting System
• ensure all interaction with tenants eg. telephone calls and correspondence, is recorded accurately
• build up a database of joint experts.

Who are ‘claims-farmers’ and what can landlords do to prevent them reaping a costly harvest?
A number of companies are ‘cold-calling’ tenants to ask if they have any outstanding disrepair problems. If so they will then seek to obtain compensation on their behalf. This could be for an exacerbated medical condition such as asthma or damages for inconvenience and loss of amenity.

This is not yet a widespread epidemic, but insurance and housing officers are advised to keep their eyes open for the practice, which could increase following the introduction of the new Housing Disrepair Protocol and the short timeframes in which landlords have to respond.

Social landlords with a large and ageing stock and financial pressures are obviously more vulnerable to these types of claims. Problems can be reduced if housing staff are briefed on how to spot early signs of disrepair when they are visiting or talking to tenants.

Zurich Municipal can help landlords by giving a briefing seminar to housing maintenance staff or senior housing
managers on the practical implications of the protocol to your organisation. For further information, please email
info@zurichmunicipal.com

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Avoiding the pitfalls – local authority disaster and
contingency planning

by Michael Burke
Michael Burke, Operations Manager, Zurich Municipal Management Services

Life could be about to change for local authorities. Disasters can no longer be brushed under the carpet and ignored. Catastrophes are demanding attention. Today the UK faces changing risks and threats.
Ensuring that the impact on service levels is as minimal as possible is now key to the success of councils and the main tool moving in this direction in business continuity.

The Civil Contingencies Bill, currently under consideration by the Office of the Deputy Prime Minister, advocates that disaster planning should become part of a structured routine for local authorities. Following on from a disaster legacy which has seen services struck down by a fuel crisis, wide-spread floods and the aftermath of September 11, the public are becoming more aware of the pitfalls which need to be effectively dealt with, not avoided.

The Bill is divided into two main parts separating issues concerning local arrangements for civil protection and
emergency powers. As well as local authorities, it will affect the emergency services, certain National Health Service bodies, the Environment Agency and the Maritime and Marine Coastguard. It will also have implications on utility companies, the transport sector and the Health & Safety Executive, although they have no duty to comply with the new regulations.

Not since the 1920 Emergency Powers Act has focus on this subject changed, and eight decades later, this change could be radical. Business continuity planning and ongoing risk assessment will become a requirement. It will be mandatory for councils, not an option. As budgets are stretched even further, some councils may choose to bury their heads in the sand, praying that lightning will not strike. After all, if a disaster doesn’t happen all the money and time spent on planning is a waste. But is it?

Basic risk assessments blow away the fog to enable councils to see hurdles which they could have stumbled on before they embarrassingly take the fall. It is a preventative process as well and an indicator of how to move services forward in the face of adversity. Business continuity planning can be interpreted in different ways by different councils, but using the definition set out by the Civil Contingencies Bill, it relates to:

“An event or situation which presents a serious threat to human welfare, in or to the environment, or to political or economic stability, or to the security of a place in England or Wales”.

Clause 1 (i).

This means that despite the occurrence of a disastrous event, the disruption to the continuity of services that need to be provided to stakeholders is kept to a minimum. This can be minor and major physical events, ranging from a leak from a vending machine which drips into the IT department, to a huge fire which burns down the town hall.

Nearly all local authorities have some sort of plan to cope with IT problems. As a fundamental part of the council’s operating ability, the disruption to communications due to a breakdown in IT means it could be effectively cut off from the outside world.

But there is still a reluctance to plan in other areas. This is because it is a monumental exercise to undertake effectively. It takes a lot of time and resources, but impact could be catastrophic if a plan is not in place. How would a council begin to assess the problem if it was already on the back foot and time was crucial? It would already be starting from a negative position.

The planning cycle is the key to identifying risks and preventing this situation. It requires a systematic approach to identifying all the risks that threaten the continuation of service delivery, and an ongoing approach to managing the risks that pose the greatest threat.

In order to achieve this, a five-step risk management cycle needs to be established:

1. Risk identification
Risks or obstacles to the continuation of service delivery need to be identified through a carefully managed exercise involving all relevant staff including senior management, covering all areas of the council’s work.

2. Risk analysis
Risks need to be analysed to determine their likelihood of occurring and the impact to business continuity if they do.

3. Prioritisation
The easiest way to analyse and prioritise risks is through the use of a matrix. Mapping all identified risks onto a matrix provides a natural prioritisation of the risks. Business continuity risks, by their nature, tend to appear towards the bottom of any matrix, meaning there is a low likelihood of them occurring but often with a catastrophic impact. By identifying the appetite for risks it still allows for some risks to be ‘lived with’, again allowing the council to focus on managing those risks above the appetite.

4. Risk management
Action plans need to be developed to ensure that these risks are managed in such a way as to reduce the chance of them occurring and/ or the impact to service delivery if they do.

5. Monitoring
Progress against these plans needs to be regularly monitored by the management team.

A cycle then becomes clear; plans are made, service delivery is unbroken, performance is enhanced, and this feeds back into the performance management framework. The focus is on doing what matters to make a difference. The process is essential if a council wishes to achieve its goals. It is also critical if it does not want to be blocked and defeated by disasters.

Subject to resources being available, a council could develop its own business continuity plans, and carry out its own risk assessments. This would have to take place on a rolling basis, as risks and environment change and evolve. However, this could lead to an element of reinventing the wheel as templates are already available, not an ideal situation when resources are stretched.

Slowly people are coming round to the idea that some disasters can be avoided. It is not a matter of predicting the future, but intelligently putting a process in place to help identify potential problem areas and develop plans to cope with them. To be prepared is to be forewarned. For further information, please email info@zurichmunicipal.com

This article appeared in Strategic Risk magazine: Business Continuity, August 2003

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How England’s rugby victory could impact on the whole community

Following the success of the England rugby team in the 2003 World Cup, and the unprecedented level of interest in the sport, Zurich is now supporting the roll out of The Prince’s Trust rugby programme, in association with eight Premiership rugby clubs.

Zurich joined forces with Premier Rugby and The Prince’s Trust to form a pilot partnership to provide young people with an accredited personal development programme known as XL, which is linked to the skills and competencies of the National Curriculum. The scheme was set up to help young people at risk of exclusion, truancy and underachievement.

As sponsors of the Premiership, Zurich was able to recruit Newcastle Falcons and London Wasps to support local XL clubs to provide coaching sessions, role models and participation in Premiership games for the young members of the clubs. Following the success of the pilot, Zurich has now recruited six more Premiership clubs to the programme including Harlequins, Bath, Saracens, Sale Sharks, Leicester Tigers and Northampton Saints.

The expanding programme provides Zurich and Premiership rugby clubs with the opportunity to support the local community by linking rugby’s team-based values with the delivery of practical skills such as motivation, organisation and leadership.

“It is fantastic that Zurich Premiership clubs and The Prince’s Trust are working together to help young people,” said Martin Johnson, ex-England and Leicester captain. “Sport can play an important role in teaching skills that are important in everyday life such as being motivated and supporting others in your team.”

“Now that England has won the Rugby World Cup, we are confident that even more young people will want to get involved with the XL programme,” said Chris Staples, Director of Community Affairs for Zurich. “Working with local schools, The Prince’s Trust and Premiership rugby teams, we hope that together we will create a real and longlasting impact on many young lives.”

Last year The Prince’s Trust helped 4,604 young people at risk of exclusion through over 467 XL clubs operating throughout the UK.

Zurich encourages partnerships with Tackle Learning
Zurich is supporting another project that encourages schools and rugby clubs to work together more closely.

Tackle Learning is a partnership between Zurich, the Department for Education and Skills (DfES) and both rugby union and rugby league associations that provides rugbythemed activities to deliver the National Curriculum at Key Stages 2 and 3.

The project was launched at the House of Commons and is being rolled out throughout schools, rugby clubs and other educational establishments. The materials for this project will also be used by The Prince’s Trust XL club programme.

The activities have been written to appeal to all pupils, irrespective of their sporting interest or gender, and teachers will not need any prior knowledge of the game to deliver the lessons. Some of the activities will involve school visits to rugby clubs, as well as players, development officers and rugby club officials working in schools.

Rugby – making an impact
As part of its commitment to rugby union, Zurich commissioned market and social research experts MORI to conduct research into the participation trends affecting the sport.

The aim of the research entitled “Rugby – Making an Impact” was to provide the Rugby Football Union (RFU) and Premier Rugby with factual information about the health of the game and areas that need to be improved. The findings are the most extensive of their kind and will be used by both organisations to help shape the future of the game.

As a result of the research, the RFU has developed an Action Plan, which was launched in September. This strategy will focus on four areas: club development and club/school links; competitions; coaching and officiating; and community involvement and partnerships. The RFU will introducing 200 new secondary schools to rugby, establishing 2,600 links between clubs and schools, offering coaching and refereeing courses to 700 teachers and training 4,000 people to be foundation referees.

Zurich commissions study into access for the disabled at rugby grounds
Zurich has commissioned a study into the accessibility of all grounds used by clubs in the Zurich Premiership.
The study comes in response to the Disability Discrimination Act, which comes into action in October 2004. The study will be carried out in conjunction with government agencies, disability access groups, rugby supporters with disabilities and the 12 Premiership rugby clubs.

The study is scheduled for completion in December 2003 and the results and recommendations will be published in early 2004 to include short-term solutions on areas that need improvement. Work can then begin on the long-term changes that are required and identifying grants available to support the improvements.

Joe Murphy, Interim Sales & Marketing Director for Zurich Municipal with Jason Leonard, World Champion rugby
union star and NEC Harlequins player.

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