Contents
Leading the way
news in brief
Finding an answer to cash office protection
Civil protection - but at what cost?
Insurance for student placements
Younger students, different risks
Private cars are a public issue
Changes to the Criminal Injuries Compensation Scheme
Insurance regulation looms large
An answer to failing projects
Time to act on access
A better approach to burial ground safety
Careful handling can reduce procurement costs
Reducing fraudulent claims
Tackling false fire alarms
The problems with late claims
Taking corporate social responsibility seriously
Strategic risk management for Registered Social Landlords
The changing face of News & Views
The rising cost of highways claims
Total loss checklist
Please click here for PDF 
Leading the way
In recent years there has been significant media attention surrounding the growing 'compensation culture' within the UK. Increasing public awareness, combined with the proactive targeting of potential claimants by 'claims farmers', has meant that public services organisations are fighting an ongoing battle to manage escalating claims costs within their organisations.
Fraudulent insurance claims is an issue that has come under increasing scrutiny in the last twelve months due to the financial impact for both public services and the insurance industry. As a result, there is now a sharp focus on implementing procedures that will reduce both the volume and cost of these claims. The appointment of a National Claims Fraud Controller in Zurich Municipal to work in partnership with customers, is just one measure we have taken to demonstrate our commitment in this area. Inside this edition of News & Views we provide further details on the activities that we are pursuing to reduce the level of fraudulent claims, as well as considering the types of claims that public services may incur.
Staying with the theme of managing claims costs, this edition looks at how local authorities can tackle the problem of rising claim numbers and costs in respect of highways claims. Recent research has revealed a 58% increase in claims over the last five years and, with an estimated cost to local authorities of £500 million a year, authorities are coming under increasing pressure to demonstrate what actions they are taking. In addition to explaining why highways claims are increasing, the article also considers the risk management processes that authorities can implement to mitigate the financial impact of these claims.
Project management is a topic that remains high on the public services agenda and with very good reason - the continuing drive towards producing cost-effective results means that the public services are largely dependent on key projects and initiatives to deliver the required financial benefits. With recent research carried out by the Office of Government Commerce (OGC) showing that 60% of all major public services projects are achieving no overall benefit, it is universally acknowledged that this is an area in which significant improvement needs to be made. In this issue of News & Views, we introduce a new Project Toolkit which provides organisations with the necessary tools to increase the chance of a project's success. Whilst project benefits are often overstated and project costs and timescales are frequently understated, the Project Toolkit aims to ensure that projects and initiatives actually achieve their objectives within the appropriate timescales.
As many public services organisations will be aware, there is currently a high level of activity within the insurance industry to ensure that companies comply fully with the Financial Service Authority (FSA) regulations. It is vital that public services, in particular, understand the implications of the FSA requirements on their organisations and the article within this News & Views provides a point of reference for any organisations requiring further information.
Finally, I would like to take this opportunity to thank those of you who took part in the recent research that we conducted around the News & Views and Court Circular publications. The feedback we received was excellent and confirmed the value that these publications add. Many of your suggestions have already been incorporated within this issue, so please keep sending us your comments and ideas, so that we can ensure that our publications continue to meet your requirements.
Back to top
HSE launches interactive consultation system
The HSE has announced the launch of a new interactive consultation system on its website. This is being used for the first time to seek views on how restrictions on the HSE disclosing information can be brought into line with the Freedom of Information Act 2000.
You can find more information about this on the HSE website -www.hse.gov.uk
Keeping children safe
With the school holidays upon us, the HSE has issued a timely reminder to contractors about their responsibilities to keep children off construction sites, and to store materials and plant safely.
The HSE's guide 'Protecting the public - your next move' contains advice for contractors on identifying and controlling risks and removing hazards. It's available for £7.95 from HSE Books on 01787 881165.
Courts Bill becomes the Courts Act
The Courts Bill has now become the Courts Act after receiving Royal Assent at the end of November 2003, putting in place a system for periodical payments (structured settlements) in personal injury cases. However, the final details on periodical payments will be published in Rules and Practice Direction, which isn't yet available.
As expected, the Act allows a claimant to apply to the Court to get a 'variation' of payments if their condition deteriorates or improves - although the chances of a claimant asking for a reduction in compensation is highly unlikely.
For more information, visit www.dca.gov.uk
LGA demands extra funds for emergency planning
The LGA met the Government in March to ask for additional funds for emergency planning. The Civil Defence Grant, which is allocated to councils for this purpose, has been frozen at £19m a year since April 2001. However, according to LGA research published in October last year, councils need an extra £17m a year to undertake the work expected of them.
To keep up to date on this issue visit http://www.lga.gov.uk/
Managing occupational road risk
The Royal Society for the Prevention of Accidents (RoSPA) has published guidance aiming to help organisations adopt a systematic management approach to reducing the risks their workers face and create for others while they're at work on the road. Organisations need to have a clear understanding of the risks involved when their employees are driving for work-related purposes and should include occupational road risk (ORR) in their health and safety policies.
According to the guidance:
- car and van drivers who cover 25,000 miles each year as part of their work are at the same risk of being killed at work as someone who works in mining and quarrying
- from 3,500 road accident fatalities every year, between 800 and 1,000 occur in accidents involving people who are driving for work at the time.
The guidance covers the nature of ORR, the benefits gained by tackling it, the law and how to develop a risk management approach.
For more information contact RoSPA on 0121 548 2000.
Zurich chooses Portakabin
Following a tough selection process, Zurich's UK operation has made Portakabin their preferred supplier for temporary accommodation for schools, and commercial organisations, in the event of a fire, flood or other emergency.
New EU chemicals strategy
The UK Government has launched its consultation paper on the new EU Chemicals Strategy. The European Commission adopted proposals on 29 October 2003 to establish a new system to regulate the manufacture, import and use of substances - called REACH (Registration, Evaluation, Authorisation and Restrictions of Chemicals).
The new regime will also create a European Chemicals Agency and amend current legislation in view of the proposed regulations. Basically, the proposals aim to address a number of shortcomings found in the current systems relating to the supply and assessment of chemicals.
You can view the document in full on the Defra website at www.defra.gov.uk
Pre-Action Protocol for Scotland
The Scottish Claims Managers' Forum - a group made up of claims managers from most of the major insurers in Scotland - has been working to produce a voluntary Pre-Action Protocol to smooth out the claims process. It's hoped that this protocol will introduce a spirit of openness and co-operation with solicitors and reduce litigation and the costs associated with it.
The purpose of the proposed protocol is to:
- encourage involved parties to resolve claims without litigation
- ensure information is provided early to allow meaningful discussion on liability
- allow appropriate offers to be made before litigation starts
- establish a basis for litigation to be carried out efficiently.
On 29 March, Zurich Municipal held a workshop in Glasgow with a number of customers to debate the proposals. This session led to a useful exchange of views and some positive feedback. In the meantime negotiations continue between the Forum and the Law Society of Scotland.
If you'd like further information contact Geoff Bilton, Customer Relationship Consultant, or Millar Gibson, Glasgow's office manager.
email: geoff.bilton@uk.zurich.com
email: millar.gibson@uk.zurich.com
The Guardian Public Service Awards
As a business that works closely with the public services, Zurich Municipal is one of the sponsors of the inaugural Guardian Public Services Awards, held later this year.
These new awards will enable both providers and users of services to nominate teams that have made a real difference. It may be the way a rundown park has been transformed, how a new operator has shaken up a notoriously unreliable bus route, or how people with mental health problems have been supported to live fulfilling lives in the community. The scope is enormous.
Winners will be chosen by expert judges and Guardian readers, and the awards will be presented at a ceremony in November.
If you'd like to find out more visit www.society.guardian.co.uk/publicservicesawards
Hope and Homes for Children
Founded by former UN Commander Mark Cook, Hope and Homes for Children provides families and homes for children who have been orphaned or abandoned as a result of war and disaster. Their aim is to give children a chance to live within the love of a family, so that they can go to school, fulfil their potential in life and become an asset to their community.
As one of Zurich's four national charity partners, Hope and Homes for Children has received £125,000 from the business, which will support their projects in Sierra Leone and the Ukraine. In addition to major donations like this, much of the charity's fundraising efforts centre on encouraging involvement from schools across the UK.
If you'd like to find out more about Hope and Homes for Children, you can visit their website at www.hopeandhomes.org.uk
Avoiding falls from vehicles
According to a new HSE leaflet, 700 people die or are seriously injured every year as a result of falling from vehicles. The leaflet suggests the basic measures that should be taken to prevent falls. It includes a safety checklist that could help a good deal with addressing the problem. The list includes the following:
- Always use all equipment available to avoid working at height.
- Don't jump from the lorry or loads.
- Steps must be safe to use and damaged or inadequate steps reported.
- Keep the lorry tidy and avoid creating tripping hazards.
- Steps and work areas should be well lit.
- Don't walk backwards near the side or rear of the vehicle bed.
Single copies of the leaflet are free or available in priced packets of 20 from HSE Books.
Back to top
In the face of growing numbers of armed robberies, how can organisations make sure their cash offices are safe but still welcoming to the public? Jack Ashworth, Loss Surveyor with Zurich Municipal, explains how.
One disturbing fact regarding robberies in this country is undisputed - there's an increasing likelihood that the criminal will be carrying a firearm. Home Office statistics five years ago showed that one in ten robberies involved firearms, but it's thought that this figure may now be nearer one in eight. And this doesn't just refer to major hauls either - the average amount of loss in a hold-up is around £100.
Although actually firing a weapon may still be relatively rare - though again on the increase Ð the use of it as a threat, to encourage lack of resistance in parting with cash or goods, is becoming more commonplace. That's why it seems strange that many organisations have reduced, or are thinking about reducing, the level of protection in their cash offices.
Their aim is to create a friendly, interactive environment for staff and the public and this is generally a positive step - approachability and easy access to all services is in everyone's interest. In a cash office, however, it's vital that this openness is combined with a safe working environment for the cashiers. In fact, the organisation owes a duty of care to provide safe conditions for its staff, and failing to meet this duty could have serious repercussions.
User friendly counters
Organisations can install the appropriate level of protection without needing an obvious barrier that prevents interaction between cashier and customer. Modern materials and construction techniques mean it's possible to create a user-friendly counter area with fixed bullet-resistant screens that allow conversation without any distortion or lack of audibility.
High-level protection
But doesn't the low rate of robbery from cash offices justify and support the desire to provide open counter areas? In actual fact, it's precisely because of the relatively high level of protection in cash offices up and down the country that this type of criminal activity is so rare. The majority of armed robberies occur in filling stations, building societies, post offices and off licences, where there are either no screens, or at best, poor-quality partial screens. Should the drive to dismantle protection continue in public service organisations, we may in the future see them added to the list of regular 'hits'.
So by using modern designs and materials, an organisation can provide an attractive, customer-friendly cash-handling environment, give the cashiers the protection they deserve, and avoid becoming a soft target for criminals.
For more information or advice on this article, please email info@zurichmunicipal.com
Back to top
The Government's proposed new Civil Contingencies Bill has raised concerns for public service organisations. ALARM looks at what it could involve.
The draft Bill issued for consultation last year identifies two broad categories of organisations affected by its proposals. Those classed as category one responders, such as local councils, police forces, fire authorities and the NHS, will be given a wide range of civil protection duties. Those classed as category two responders such as utility providers, transport operators and the Health and Safety Executive will be required to co-operate with multi-agency planning and share operations.
If passed in its current form, the new Bill would completely transform the way that the country deals with an emergency. Understanding and implementing the proposed new regional civil protection tiers will take time and resources. However, such additional responsibilities will require potentially huge amounts of funding and could require support from Central Government.
There are also real concerns among councils and other public service organisations that there may be liabilities facing them if they don't meet the expected standards. With the level of resources that will be needed, smaller authorities in particular may struggle to implement them quickly enough. Penalties for failure will simply drain more and more vital public coffers and make the challenging task of providing public services increasingly difficult.
The Bill appears to suggest that there will be only a negligible effect on departmental budgets, and there's reference to the lack of insurance cover that public bodies are currently relying on as part of their normal business continuity planning. There's no apparent mention of any compensation money provided by the Bill. And given the current pressures on councils to limit increases in spending, any additional costs that councils face can only serve to increase this problem.
ALARM - the National Forum for Risk Management in the Public Sector - believes that the concept of the Civil Contingencies Bill must be welcomed but the proposals will be viewed with caution until many of the outstanding issues are cleared up. There's no doubt that making emergency planning a statutory requirement will benefit everyone, but implementing the new duties outlined in the Bill will require considerable time and resources. Understanding, implementing and maintaining these new duties will need considerable funding, and who pays for it is a problem to be solved.
For more information please contact the ALARM administration office on 01395 223399 or visit the website at www.alarm-uk.com.
ALARM - The National Forum for Risk Management in the Public Sector - which celebrated its 12th anniversary this year, represents over 1,500 members across the UK public sector. The Association's aims are to enable public sector organisations to develop and implement successful risk management practise, to promote education, training and research and to disseminate information.
Back to top
When arranging student work placements, make sure you know who's taking on the liability.
It's sometimes wrongly assumed that student work placements are covered by their college's insurance arrangements. The college's insurance provides an indemnity to the college for their legal liabilities only, with the host employer placing the risk for their own legal liabilities and that of their employees through their own insurance arrangements, ie. Employer's liability and public liability policies.
Generally, UK liability insurers have extended their definition of employee to include students on work experience or similar schemes such as placements. However, there are occasions where this approach may not be practical.
When the placement is with a Government agency, as these agencies self-insure, they may require an indemnity agreement which passes the responsibility for the risk back to the student's college. In this situation, you should always speak to your insurer before agreeing to the indemnity. You can also arrange personal accident insurance to provide cover for the student on placement on these occasions.
A host employer who doesn't have employees, for example a local craftsman, would not have employer's liability cover in place. In this case, the host employer's public liability policy could be extended to provide the necessary cover, on the basis that the student is a third party. You should also obtain confirmation that the public liability insurers have accepted the risk.
It's good practice to discuss student placements with your insurer and seek their advice. With any work placement, your college has a legal obligation to perform and document a risk assessment process, to ensure it has taken all reasonable actions to place the student in a safe environment. This should include checking the insurance arrangements of the host and confirm that the student is covered by both employer's liability and public liability as a minimum.
For more information about insurance for student placements, please speak to your local Business Team Consultant or email info@zurichmunicipal.com
Back to top
With the Government encouraging 14- to 16-year-olds to pursue vocational studies at colleges, what are the insurance implications for the establishments taking on younger students?
Insurance arrangements already in place for colleges of further and higher education will have been based on an assessment of the risks associated with the students who normally attend. Colleges enrolling 14- to 16-year-old students will have an increased duty of care as they are deemed to occupy a position 'in loco parentis' - the college must therefore demonstrate by a documented risk assessment processes that they have fulfilled their obligations in full.
From a health and safety perspective, the objective is to ensure that younger students are adequately supervised and protected with the different needs of 14- to 16-year-olds being taken into consideration.
Zurich Municipal is happy to work with any colleges considering taking on younger students to assess, manage and insure the new risks this may involve.
For more information please speak to your local Business Team Consultant or email info@zurichmunicipal.com
Back to top
In the last issue of News & Views we explained why work-related road safety is so important. Now Lee Brett, Zurich Municipal's loss control CONSULTANT, explains how to avoid problems when public service staff use their own cars for work.
Today, many public service employees - including care workers, social services staff, and council representatives - use their own cars while driving on business. But this is often an area of health and safety and risk management that employers overlook. And that could be a serious mistake, as estimates suggest that up to a third of all road traffic accidents involve somebody who's driving as part of their job.
Unfortunately, many employers' insurance cover doesn't extend to the use of private vehicles for work purposes, meaning they're leaving themselves open to considerable risk from claims for injury and damage to third parties and their property. The employee should extend their cover to include business use.
What's more, employers who fail to take action may, in fact, be breaking health and safety regulations. The Management of Health and Safety at Work Regulations 1999 require every employer to carry out an assessment of the risks to the health and safety of their employees, or themselves, whilst they are at work, and to other people who may be affected by their work activities. And this should include assessing employees who drive private vehicles. The regulations require the risk assessment to be reviewed periodically to make sure it remains valid.
One simple way employers can minimise their liability is to introduce an agreement with employees who drive for business purposes, stating that any claims made against the driver will be directed to their own personal motor insurance and not that of the employer.
On top of that, the following simple checks should always be in place:
- Licence - Does the driver have the correct licence and what is their driving record? (Look at endorsements, driving bans, etc.)
- MOT certificate - Does the vehicle have an up-to-date MOT certificate? Is the vehicle suitable for use? Is it roadworthy and well maintained?
- Insurance - Does the driver have the correct insurance? What is their claims history?
- Training - Has the driver received the correct training to drive for work purposes? In this instance, employees should be treated in the same way as the organisation's fleet drivers.
- Passengers - Will the driver be carrying passengers? Does the employer have a written policy for carrying fellow employees/service users?
In all cases, the employer should keep a written record of the checks they have carried out, stating which members of staff they have checked and when it happened. This way they can demonstrate that they have done all they can to minimise potential risks and safeguard the communities they serve.
For more information please email info@zurichmunicipal.com or visit http://www.hmso.gov.uk/
Back to top
What could new proposals for criminal compensation payments mean for public services?
The Criminal Injuries Compensation Association (CICA) is currently the first port of call for people who sustain injury as a result of a criminal act. The CICA decides how much compensation someone is entitled to, taking into account issues such as whether the person who caused the injury has been convicted and whether the victim has a criminal record.
However, because the criminal is usually the person liable for the compensation and often doesn't have the funds to pay, the Home Office is looking at other ways to fund payments. One of their proposals is to make employers with over 250 employees responsible for compensating workers injured at work - which could have significant implications for employers in public services.
The suggestion is that claims from workers injured on duty should be assessed under the rules of the Criminal Injuries Compensation Scheme and employers should either pay the final award or reimburse CICA for compensation it has paid. In either case, the employer could still have to pay the CICA's overheads.
If employers have to fund payments then they may have to extend their employers' liability insurance.
If you'd like to view the CICA consultation paper, visit the Home Office website at http://www.homeoffice.gov.uk/
Back to top
Financial Services Authority (FSA) regulation of insurance-related activities could have a major impact on public services. But how will it affect your organisation?
From 14 January 2005, any organisation which is involved in the selling or administration of insurance on behalf of others will need the appropriate authorisation from the FSA and will be required to comply with their rules, unless exemption applies. This may affect many public service organisations and their ability to carry out key activities.
Local authorities and Registered Social Landlords are exempt. Other organisations who want to sell or administer insurance (insurance mediation) on behalf of others, 'by way of business', from January 2005 needed to submit a completed application form to the FSA by 14 July 2004.
To be considered to be conducting insurance 'by way of business', some form of fee, commission, reward or economic benefit would normally be involved.
It's vital then that public service organisations understand their position in relation to the FSA and its requirements.
So if you think your organisation might be affected, you should fully investigate the impact and possible implications of FSA regulation. Responsibility for compliance rests with your organisation and if you're unclear whether you need authorisation, you should check directly with the FSA.
You can get further guidance from the FSA on their website at www.fsa.gov.uk
Back to top
The costs involved in failing public services projects are huge. But what can be done to avoid the problem?
According to the Office of Government Commerce (OGC), 60% of all major public services projects and programmes achieve no overall benefit. This is often a result of overstated benefits and exaggerated optimism at the project's start, as well as an unrealistic assessment of costs, advantages and timescales.
Failing projects and initiatives often have a common theme as they are usually based on flawed assumptions, ineffective stakeholders and insufficient capacity. Unfortunately, high-profile public organisations and Government departments can't afford to make mistakes in achieving their goals or meeting their targets, as the costs of failing projects are huge, both financially and in terms of an organisation's reputation.
However, there are ways to avoid the problem of failing projects.
One of these is Zurich Municipal's new Project Toolkit, which gives organisations the necessary tools to increase the chances of a project's success. The Project Toolkit helps project managers determine whether a project can genuinely deliver a worthwhile benefit to the community, if there are sufficient and appropriate resources, how to make best use of resources, and how to identify and solve problems in time.
According to Tilden Watson, acting Senior Partner at Zurich Municipal Management Services (ZMMS), 'Public service organisations are under increasing scrutiny and pressure to ensure projects are delivered on time and to budget. The consequences of failure can have far reaching implications throughout organisations. Our toolkit seeks to improve capacity and capability to ensure these consequences never happen.'
The Project Toolkit contains a range of tools designed to complement traditional project audits and reviews, which are tailored for each authority and project to ensure planned projects achieve their objectives. The modules of the Project Toolkit include:
- benefits realisation: identifying, monitoring, delivering and realising the expected benefits of a project
- stakeholder analysis: identifying the main stakeholders and managing relationships
- capability assessment: assessing the organisation's capability to deliver projects, covering organisation, people, processes and tools
- value management: identifying the methods and teams needed to meet objectives and how to apply them
- project risk management: identifying, prioritising and managing the main risks that affect or are likely to affect a project
- project assurance review: how to look at every stage of the project to provide an accurate picture of current status and identify problem areas
- problem solving: how to recognise problems that have arisen, identify the root cause and develop appropriate solutions
- post-project review: how to learn lessons for the future.
The Toolkit is regularly reviewed and amended to keep up to date with the constantly changing agenda facing local government. All modules are presented by ZMMS consultants, who are PRINCE2-trained with extensive experience in handling and procuring major projects for local and central government.
If you'd like to find out more about the Project Toolkit, please email info@zurichmunicipal.com
Back to top
Part III of the disability discrimination act 1995 comes into force in October, placing increased duties on service providers.
All public service organisations will be familiar with the Disability Discrimination Act 1995 (DDA) as much of it has been law for some time. In fact some aspects of the Act have been in force since December 1996.
The latest aspects of the DDA to become law do so in October 2004, and it's the additions to Part III of the Act which are most relevant to public service providers. Basically, the new legislation means that from October 2004 all service providers may have to make permanent reasonable adjustments to their premises to increase accessibility. This builds on changes introduced in October 1999, which stipulated that service providers must make reasonable adjustments to the way they deliver their services so that people with disabilities can use them.
In practice the new law means that if a physical feature of a service provider's premises presents a barrier to access, the provider has four options - remove it, alter it, find a way of avoiding it or deliver the service in a different way. Of these choices, the Disability Rights Commission (DRC), which was established by Act of Parliament and promotes a vision for 'a society where all disabled people can participate fully as equal citizens', favours removal or alteration. This 'inclusive' approach allows disabled people to access services in the same way as other customers.
So what constitutes a physical feature? The list includes: steps, stairways, kerbs, exterior surfaces and paving, parking areas, building entrances and exits (including emergency escape routes), internal and external doors, gates, toilets and washing facilities, public facilities (for example, telephones, counters or service desks), lighting and ventilation, lifts and escalators, seating in streets or gardens, stiles, paths and fixed signs.
This is a long list and service providers are expected to be proactive about the changes they need to make, rather than waiting for a problem to arise. Consequently the DRC recommends commissioning an access audit, carried out by an experienced access auditor, to highlight barriers that premises may present to people with disabilities. These audits also suggest possible practical solutions to enable service providers to take control of the situation.
What are reasonable steps to take?
One question many public service providers will have is what is considered 'reasonable' under the Act? The DRC's Code of Practice advises that this will depend on the type of service being provided, the size, nature and resources of the service provider and the effect of the disability on the individual disabled person. Some questions to be asked are:
- how effective would the proposals be in making access easier for disabled people?
- how practical is it for the service provider to implement the proposals?
- how much would it cost?
- how much disruption would be caused?
- how much has already been spent on improvements?
- how much assistance, financial or otherwise, is available?
Guidelines for new buildings
Even service providers with recently built premises that comply with building regulations can't assume they will have no issues to address under the DDA. Although major structural alterations are unlikely to be required, building details may need to be looked at - for example, do doors have the right handles and are they easy to open? Do colour contrasts present a barrier for people with visual impairments?
Benefits for all
Complying with the Act is obviously essential but, in addition to acting lawfully, the changes public service providers have to make to their premises could have further valuable benefits.
The DRC has published a guide showing how equality for people with disabilities can be incorporated into efficient and effective service delivery, complementing the Best Value initiative introduced in April 2000.
Some physical features such as lighting and display units can be repositioned or removed with little cost and disruption and can make the service involved more accessible to older people and parents with pushchairs as well as disabled people.
What's more, taking a proactive approach to the issues raised by the DDA can improve health and safety awareness within the service provider, reduce legal claims and maintain or improve the reputation of public services. Ultimately, improved accessibility to public services is good news for everyone.
Take it further
With further aspects of the Disability Discrimination Act becoming law in October 2004, it's important to act now to ensure compliance. You can get more information from the Disability Rights Commission website at www.drc-gb.org. The DRC's Code of Practice, which is referred to in this article, is available from TSO for £13.95 - you can call them on 0870 600 5522 to order a copy.
Zurich Municipal can also carry out basic DDA compliance surveys.
For more information on this service, please email http://info@zurichmunicipal.com
Back to top
In previous issues of News & Views, we've discussed safety in burial grounds. Now we look at the work of a council which has developed a newer and safer memorial installation system.
The stability of some existing memorials is a well-known problem. But Ian Gammans, Zurich Municipal's Loss Control Services Manager, believes the situation could get worse if burial authorities continue to allow new installations with inherent jointed weaknesses.
"We're recommending to burial authorities that in future they have a policy that only allows members of the public and masons to have memorials installed which consider safety aspects and prevent the possibility of future incidents.
"One such authority is Harrogate Borough Council (HBC), which has developed a monolith memorial system that's both popular with the public and masons and safe. The need for this new system arose following the tragic death of a six-year-old boy who was killed when a 99-year-old upright memorial fell on him.
HBC's answer is a 'shoe' system that accommodates various memorial widths, firmly addresses the safety aspect and allows easy removal for later inscriptions. The way it works is simple - the headstone plate is slotted into a concrete shoe set onto a reinforced concrete raft below ground, and a bolt is inserted through the two side pieces of the shoe and through the memorial. Any gap between the 'ears' of the shoe can be packed with pieces of slate or stone and held in place by a weak cement mix.
To transfer the memorial to a workshop, the mason needs simply to dig out the topsoil and undo the bolt. 'Unlike the removal of a jointed memorial, secured by ground anchor and dowels, this shoe system is easy to both install and remove. The safety and stability of the memorial is never compromised - as it may be with other systems,' states Patrick Kilburn, HBC's Head of Parks and Open Spaces.
"This method requires less stone below ground than the traditional monolith, which has one third below and two showing. It can reduce the required depth to, say, 25 per cent, and so make it easier to be dug up and removed for additional inscriptions," explains Sam Weller of the The Association of Burial Authorities (ABA). "If the headstone is wedged or cemented into the shoe, as described above, it is unlikely that a bolt will also be essential. For removal the plate may be jiggled loose or the complete shoe and headstone lifted out."
When an apron stone is chosen in front of the memorial to hold flower containers, a brick or block foundation is built up from the shoe to support the apron. All components are then mortared together, and a foundation slab can be fixed under the apron if it's wanted. In this way, the apron is purely cosmetic and poses no safety concerns.
A reinforced concrete beam as used by HBC isn't essential, unless the ground is exceptionally wet or soft. The shoe can simply be set into solid ground. However, it is worth noting that the concrete raft does ensure there is no settlement, as well as virtually removing the risk of movement when reopening a grave for a second or third burial.
In operation for nearly three years now, the system is an undoubted success and is an excellent example of what can be done to avoid injury and even fatalities in burial grounds across the UK.
For more information email info@zurichmunicipal.com or http://aba@swa-pr.co.uk
Back to top
Procurement can be a costly process for local authorities. Philip Coley, Consultant at Zurich Municipal Management Services (ZMMS) offers A new solution to the problem.
Local authorities are under growing pressure to achieve best value for money and reach the targets demanded by their communities. But the risks involved in the procurement process can make this difficult, which is why nine 'centres of excellence' have been set up to support councils in delivering their commitments under the National Procurement Strategy (NPS).
In addition to this, ZMMS was appointed by 4Ps - the Public Private Partnership Programme - and the Improvement and Development Agency (I&DeA) to provide local authorities with risk management training to deal with common pitfalls in the procurement process. The training programme is subsidised by a £1.4 million investment through the Capacity Building Fund from the Office of the Deputy Prime Minister (ODPM). So far, six courses have taken place and, due to heavy demand, more dates have been scheduled.
The ZMMS training provides an overview of the role of risk management in the whole procurement cycle and introduces a range of risk management tools. By using these effective techniques, local authorities can avoid many common mistakes.
The training can also be the first step in making risk management fundamental to the way an organisation works, with everyone from the chief executive down thinking about possible areas of difficulty.
"We're delighted that ZMMS is offering this skills development training. The courses enable local authorities to benefit from its experience and excellent track record in the risk management arena," said Julia Luckett, Executive in Charge of Skills Delivery for 4Ps.
Other training courses provided as part of the National Procurement Strategy include:
- commercial negotiation
- building and managing relationships
- contract and procurement law and practice
- commercial practice/finance/law and tax
- local government finance and trading.
If you'd like further information on training for the National Procurement Strategy, visit www.training@4ps.gov.uk For more information on ZMMS training courses email info@zurichmunicipal.com
Back to top
Fraud could be costing the public purse millions of pounds. Technical Claims Manager Alan Hunter explains what Zurich Municipal is doing to tackle it.
A recent survey by the ABI into fraud in personal lines insurance establishes that 48% of adults would not rule out making a fraudulent insurance claim. It is estimated that in personal lines insurance alone that translates to £1 billion of fraudulent claims.
In public service organisations it's difficult to quantify the extent of fraud across the many functions from benefits to highways, but the anecdotal evidence puts the figure at several million pounds. In times of budgetary constraint and capping by the Government it's important not to underestimate the impact of losses on this scale on the community at large. Funds reduced by fraud are funds that should be available in areas of high need in the community such as health, housing and social services.
Zurich Municipal is one of the sponsors of a second ABI-backed survey into attitudes to fraud. This time the focus will be on commercial insurance involving large commercial enterprises, local authorities and sole trader enterprises.
Zurich Municipal has always taken the issue of fraud in any of its key markets very seriously. The current operational structure incorporates a network of fraud co-ordinators, based in each of our offices. Their role is to identify suspicious claims and ensure that they are investigated by our specialist staff, the Claims Investigation Unit. Wherever possible a criminal prosecution will follow.
The Claims Investigation Unit is a national team of specially trained claims investigators (many of whom have a police background), who use a number of sophisticated techniques and software during the investigation process. During this phase many claims are dropped or simply not pursued. All cases are recorded and the potential savings on this category of claim recorded - the amounts saved are substantial.
Zurich Municipal is in the process of interviewing a short list of candidates for the position of National Fraud Controller. This will be a high profile role and the successful candidate will drive the campaign against fraud, championing best practice to deter and detect fraud.
A key element of Zurich Municipal's fraud strategy is to work with customers to help them improve their processes. This not only shuts down potential avenues for fraud but also encourages the pooling and sharing of data between organisations that will assist in the detection process. Through the work of our Claims Relationship Consultants we are working in partnership with various customer groups sharing best practice, intelligence and beginning to develop a more joined-up and coordinated stance on fraud.
The Government has recently indicated that it will consider classifying fraud as a common law offence. This would be a very welcome step, as currently it is very difficult to put a label on what constitutes the offence of fraud - although some of the obvious elements are pecuniary advantage, deception and deliberate intent.
Whilst the recent Better Regulation Task Force report 'Better routes to redress' rules against a compensation culture, it does concede that the combination of Conditional Fee Agreements and 'claims farmers' 'fed an enormous number of claims into the system'. "The sector (accident management companies) encouraged people to have a go even if there was little chance of actually achieving the large payout... we heard about people being encouraged to make claims for tripping over the same paving slab or driving over the same pothole... the whole sector was brought into disrepute."
Even now, with The Accident Group gone, we're still seeing the sorts of claim described above. Therefore the risk management message remains the most potent weapon against fraud happening in the first place, but 'vigilance' remains the watchword.
What's more, there are an increasing number of 'claims farmers' today. These companies seek out possible claims for their own financial gain and that of the claimant. However, in certain cases, claims farmers have been known to exaggerate or even invent claims on behalf of others.
A recent example came when five claims for slips and trips were reported by a Maidstone-based solicitor in a single day - on behalf of two members of the same family. It later turned out that the two people owned a claims farming company and received £350 every time a claim was referred to the solicitor. Following an investigation by Margate CID, with help from the Zurich Claims Investigation Unit, the claims farmers were arrested on suspicion of theft and deception and the potentially liable party (Kent County Council) saved thousands of pounds.
For further information please email info@zurichmunicipal.com
Back to top
The Office of the Deputy Prime Minister (ODPM) has launched a new initiative to tackle the growing problem of false alarms from fire detection systems, which is costing the UK economy around £1 billion every year.
As well as this unacceptable cost, these false alarms divert valuable fire and rescue service resources from, for example, fire prevention duties or responding to real emergencies.
The new policy aims to improve the quality of system design, installation, commissioning, maintenance and use to prevent false alarms from occurring, enable fire and rescue services to intervene where troublesome systems make it necessary, and protect the public.
The policy includes a number of different elements including a registration scheme by fire and rescue services for automatic fire alarm installations, and the phased introduction of third-party certification requirements for the design, installation, commissioning and maintenance of fire alarm systems, and for alarm receiving centres.
Zurich Municipal was asked to respond to the draft policy and has done so, making a number of recommendations.
Fire brigades across the country will hand out a free guidance document to businesses when attending false alarms from automatic systems.
For more information please visit www.odpm.gov.uk
Back to top
Late notification of insurance claims can present major problems for both the insurer and the insured. Mark Tapsell, Property Claims Manager with Zurich Municipal, explains why.
With property insurance, one of the major barriers to the successful completion of claims is late notification. This is especially true in the case of customers who may have multiple claims in progress at any one time. A delay in making a claim can make it difficult for the insurance company to recover any loss and, more importantly, seriously affect the cash flow of the insured - an issue that could have repercussions for any public service organisation.
Most policies of insurance contain a condition requiring notification of claims as soon as possible after an event, and within 30 days. Failure to do so can constitute a breach of the contract, which might lead to repudiation of cover by the insurer if they believe their position has been financially prejudiced.
For example, if a claim is made months or even years after the event actually took place, the opportunities for a genuine recovery may be lost. Even if it is possible to identify them, the responsible party may have gone into liquidation, moved away or ceased to exist - meaning the claim can never be successfully pursued. On top of this, with the impact of inflation, the insurer may also encounter difficulties in recovering in full from the responsible party, potentially leaving both them and the insured with a financial shortfall.
There are also some less obvious problems that can arise from late notification. The first of these concerns damage to property. If the claim isn't submitted promptly, the damage may not be repaired in a timely fashion, causing whatever was damaged to deteriorate further, meaning more work (and more money) is needed to put it right. Insurance companies will still pay out if this happens, but may reduce the settlement the insured receives, depending on the extent of the deterioration.
If claims haven't even been reported, there can also be problems at renewal. Underwriters will be unable to establish the correct level of risk, or the aggregate total of losses to which they're exposed, causing potential prejudice to the renewal terms and premiums charged. When a claim is reported late, the insurer is not given the opportunity to inspect and validate the damage using a preferred supplier, loss adjuster or other expert, which will often be their normal practice given the extent of the loss and the circumstances involved. As a consequence, an insurer could in theory restrict its liability to the lower cost that it would have incurred, had it been able to employ a supplier of its choosing.
So the answer to these issues is simple. Make sure all claims are notified to insurers promptly and accurately and you shouldn't encounter any problems. If late claims reporting is a problem in your organisation, we're keen to help, either by educating or speaking to relevant personnel or departments.
Please contact your Claims Relationship Consultant for further information or email info@zurichmunicipal.com
Back to top
In a recent publication, the New Local Government Network, an independent thinktank, looked at partnerships in local government and corporate social responsibility (CSR). But why is CSR so important to local authorities and what are the benefits it can offer?
In a recent publication, 'Business & Local Government: Partnership, Contracts and Corporate Social Responsibility', the idea is put forward that the partnership role taken by business in working with local authorities can also be used to tackle community problems and development.
In a collection of essays from a range of experts in this area, the publication looks at key questions relating to the ability of the private sector to make a positive impact on local communities. Particularly, it concentrates on how local authorities can encourage CSR and openness in public/private partnerships, and explains the role of local voluntary organisations in these partnerships.
As a company that takes CSR very seriously, Zurich Municipal was obviously keen to be involved in the publication. And that's why Guy Munnoch, our Managing Director, is one of the contributors, submitting an article that looks at the role public service providers can play in promoting CSR and the benefits on offer if they do.
In his article, Guy explains how local authorities can use CSR as a lever to make sure that suppliers are helping to secure the social, economic and environmental wellbeing of the local community. And by ensuring that their suppliers have a robust and meaningful CSR programme, public service providers can align these programmes to meeting their own social objectives. He also looks at Local Strategic Partnerships (LSPs), stating the CSR can go a long way to ensuring their success. "If public sector partners can play their part in pressing home CSR," he says, "they may find that they are more successful in securing the private sector involvement they need to make their LSPs more successful; It is about achieving common goals, which will benefit business, different parts of society and the community."
He then goes on to explain the rewards for private business in taking CSR seriously. Of course, a positive corporate reputation is one of the most obvious benefits. But he also cites the views of employees and potential employees as an important factor. Using Zurich Municipal as an example, he shows that by taking a proactive approach to protecting the environment, helping the community and adopting a policy of social inclusion, an organisation can position itself as an 'employer of choice'.
To close, Guy explains that public service providers can make sure CSR is part of the business planning process. "If public service providers work together to exercise the undoubted influence they have over their suppliers... there is a real opportunity to have a key supporting role in the continuing development and growth of CSR in this country."
The publication was launched in July and if you would like a copy please contact NLGN on 020 7357 0051 or email network@nlgn.org.uk
NLGN
Founded in 1996 by a group of senior local government figures, the New Local Government Network (NLGN) aims to make local government more relevant and credible to local people. Put simply, it's a non-profit making, independent think-tank that works to improve public services, revitalise local political leadership and empower local communities.
Using publications, conferences and seminars, the NLGN works closely with individual authorities, national agencies, Government and the private sector to promote ideas about how these objectives can be put into practice.
Back to top
Following his workshop at the National Housing Federation Conference, David Forster, Principal Consultant at Zurich Municipal Management Services, explains how RSLs can tackle risk strategically.
Registered Social Landlords (RSLs) have always taken risk management seriously, but there's an increasing recognition that a more strategic approach will bring enormous benefits.
Organisations exist to achieve certain aims and, fundamentally, risk management exists to manage the barriers to achieving them. Risk management has long been viewed as a technical, complex, compliance process for specialists, but, in reality, it represents 50% of the work of strategic managers and is best handled in simple, clear and focused ways.
Corporate governance has been the driving force behind risk management for some years. And the major business failures in both the public and private sector are evidence that this is still just as relevant today. However, there's an increasing understanding that risk management is a fundamental business planning tool, which is ideally suited to long-term planning and goal setting.
But where do you start? Most managers will associate risk management with physical, financial and legal risks, usually on an operational basis. Zurich Municipal Management Services' position is to start from the top, looking at the long-term issues which will impact on an organisation from a wide variety of angles including political, partnership, managerial, technological and legislative. And our work with an organisation also starts at the top, with the senior management team, board of directors and partners.
The way Zurich Municipal Management Services approaches this work is fundamentally different to many other specialists in this area. Our STORM (Strategic Organisational Risk Management) tool is keenly business focused rather than audit focused. We use a five-stage process, which begins with engaging the hearts and minds of the people at the top of the organisation. Once engaged, we help the organisation to identify risks through simple intuitive interviewing, matching issues against goals. These findings can then be progressed at corporate, directorate and service levels, with the transfer of skills ongoing throughout.
We don't measure our success by the size of the report or the number of issues identified. What matters most is measuring the relative importance of the business issues to key objectives, and achieving buy in and ownership from key managers to recognise and resolve the most pressing problems.
Senior managers make their own decisions on the importance of risk and reward through simple facilitation techniques. The business outcome is a clear, straightforward and shared understanding of the most important issues facing the organisation over the medium term (usually three to five years), and what the organisation needs to do to manage them.
For more information on tackling risk strategically please email info@zurichmunicipal.com
Case study
As part of the workshop, Jane Iley of Coast and Country Housing gave an excellent example of how strategic risk assessment can be integrated into business planning.
Coast and Country Housing, recently established in the Tees Valley with over 11,300 homes, recognised early that risk management should not exist in isolation, but must be part of a wider framework linking business planning and operational management. A key component of the culture at Coast and County is ensuring that people at all levels can see how risk affects their own success and that of their organisation.
Using a STORM exercise as a starting point to enable the management and board to share an understanding of the big issues, Coast and Country has built a sophisticated business model using risk management as one of the key drivers to manage improvement and operations. Risk is now owned from the very top to the very bottom of the organisation in a structured but fluid way.
Not only has this produced a successful risk-based approach to managing the organisation, it has also had the additional benefit of a very positive report from the last regulatory inspection, satisfying the governance and compliance aspect of risk management. And this must be the ideal outcome for an RSL seeking to manage risk more effectively.
For more information on Coast and Country, please contact Jane Iley, Director of Finance, on 01642 771380.
Back to top
Following research which asked you, our readers, about our publications, we've made some changes - which you may well have noticed! Amy Harpin, Research Assistant, explains what's been done and what you can expect in the future.
The first thing we have to say is a big 'thank you' to everyone who took part in the research. Without your input, we could never have produced the positive results in front of you today. Hopefully, you can see that your opinion does count and has helped make News & Views even more relevant and useful.
So what were those changes?
The basic aim of all the improvements we've made has been to make News & Views more accessible, more appealing and easier to use. That's why the changes have focused on the following areas:
- Organisation - you'll see from the contents page that articles are grouped into subject areas. So you can see at a glance what articles are of interest to you and where you'll find them, quickly and easily.
- Design - even before you open the publication, you'll see that we've changed the design of the front cover to incorporate information about articles you'll find inside. In this way, you'll be directed to important features that are of interest to you and know what highlights to look out for.
- Words - the language we use throughout News & Views is now more straightforward, written without overuse of jargon or industry-specific terms. This accessible writing style should make articles clearer and more readable.
Of course, improving News and Views is an ongoing process and won't end here. We're constantly looking for ways to make it more useful to you. So you can look forward to more changes over the coming months, including new features like a questions and answers page, giving you the chance to raise issues you'd like to see discussed.
Once again, we'd like to say thanks for your help in this extremely valuable research and look forward to bringing you more improvements in the near future.
If you have any questions or suggestions for us in the meantime, please contact Paul Allen on 01252 387061 or email info@zurichmunicipal.com
Back to top
According to Zurich Municipal's figures, highways claims have risen by 58% over the last five years. What can authorities do to tackle the problem?
There are a number of possible reasons for the rapid increase in highways claims, according to Iwan Borszcz, Claims Director at Zurich Municipal: "The most obvious is the introduction of Conditional Fee Arrangements (CFAs), which have made it easier for people to make claims with the no win, no fee agreements in place.
"A greater number of companies are now proactively targeting potential claimants. Furthermore, our own research among local authorities shows that there has been an increase in the number of tenuous claims they have received. This is not helped by badly maintained highways providing the necessary ammunition.
"Above all, we advise that the best way to manage the issues is to manage the potential risks, making claims less likely."
Lack of adequate funding for highways maintenance has been a growing problem for a number of years, driven by a lack of funding specifically for this area and a central government focus on the core issues of education and health.
It's therefore not uncommon for highways authorities to spend more on defending claims and compensation payouts than they do on highways maintenance. Unfortunately, the results speak for themselves.
Zurich Municipal's figures show that more than half (55%) of highways claims against local authorities are for 'footway defects' causing trips and slips. Between 1998 and 2002 the number of claims for footway defects rose by 76% and the cost of these claims increased by 129%. 'Carriageway defects', which account for 27% of claims, have risen by 74% and seen claims costs increase by 136% over the same period.
So how can highways authorities reduce an expense which is estimated to stand at around £500 million a year? A positive first step could be to take a look at the CFA Best Practice Guide produced by Zurich Municipal in conjunction with the Local Government Association.
Since CFAs were introduced, 81% of local authorities have reported an increase in the number and cost of claims and Zurich Municipal has seen highways claims alone increase by 58% between 1998 and 2002. The new guide provides local authorities with an invaluable tool to help them take control of a growing financial burden. It includes:
- advice on claims handling procedures to remove unnecessary and costly delays
- the systems and practices which should be in place to best manage the risks and reduce exposure to increased legal costs
- essential risk management systems and practices
- dos and don'ts with examples of worst and best practice case studies.
According to Alan Hunter, Zurich Municipal's Technical Claims Manager, "The CFA Best Practice Guide highlights that effective risk management processes and robust inspection systems must be in place. These will reduce the opportunity for claims to be made in the first place and will minimise expenditure on handling claims that are made."
Legal costs are estimated to account for 40% of the total compensation bill - so anything an authority can do to reduce them will have a big impact on claims costs. "The root of the issue is simplifying processes and dealing with claims promptly and proactively to minimise the time lawyers spend on the case," says Alan. "There is no point defending the indefensible, being able to identify where there is no viable defence to a claim and give an early admission of liability, is critical if additional unnecessary costs are to be avoided."
It's clear from the figures above that highways authorities urgently need to find ways to reduce claims caused by footway and carriageway defects. Exact methods will vary from authority to authority but generally they should include:
- following the Local Authorities Association's Highways code of good practice, which mentions risk management for the first time
- considering surfaces other than paving slabs, which account for 70% of trips due to the fact that they can rock, crack, tilt and sink
- introducing rigorous risk management processes
- setting and implementing recommended inspection intervals based on the code of practice guidelines, traffic/pedestrian volume, known deterioration areas, surface type, local residents and claims history
- setting and implementing recommended intervention levels. The guidelines are 20mm for footways and 40mm for carriageways. Repair standards and times also need to be set and these must tie in with the inspection regime and defect reporting
- keeping comprehensive and accurate records. All highways authorities should document their reasons for setting the standards they have. In addition audit trails should clearly show when inspections were carried out, whether there was a defect and, if so, what action was taken. It is also important that the records clearly state if no defects were found
- training relevant staff.
Even a 10% cut in highways claims would result in a saving of £50 million, which could be used for front-line services. Consequently, by making a commitment to best practice highways authorities can make a valuable contribution to public services as a whole.
Take it further
For a copy of the Conditional Fee Arrangement Best Practice Guide or to find out how Zurich Municipal can help you to introduce the recommended risk management processes, please email info@zurichmunicipal.com
Back to top
If you pass ownership of a vehicle to your insurer or a salvage firm without informing the DVLA in the correct way, you could leave yourself open to fines and endorsements incurred by the new owner. And although you may think the insurance company will handle everything for you, there are still things you need to do.
This checklist gives you everything you need to know:
Old-style vehicle registration document (VRD)
- Send the top part of the document to the insurance company.
- Complete the 'Notification of Sale or Transfer' part of the registration document to the DVLA, telling them that you have passed the vehicle to the insurance company.
New-style vehicle registration document (VRD)
- Send the blue section (v5) and the green section (v5/2) to the insurance company.
- Complete the red section (v5/3), telling the DVLA that you have passed the vehicle to the insurance company and send this to the DVLA.
Under a special arrangement between the DVLA and insurers, an insurance company can ask you to send them the whole document. The insurance company is then responsible for filling in the red section and sending this to the DVLA. You must at this point write to the DVLA and tell them that you have passed the vehicle and VRD to the insurer.
For more information visit http://www.dvla.gov.uk or email info@zurichmunicipal.com
Back to top
