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Welcome to the latest edition of news and views.
news in brief.
Footing the bill for the abolition of legal aid.
Outlook for a stronger insurance market.
First stage report on public liability.
Tighter regime for control and processing data.
Health and safety in NHS hospitals.
New insurance options for voluntary aided schools.
School arson doused by innovative campaign.
Insurance gap jeopardises community groups.
Website hitting the target.
ALARM in action.
New look for risk management advisory service.
A risk of underachievement?
Birthday honours.
Fire resisting cladding endorsed by Zurich municipal.
Learning to avoid slips and trips at school.
Filing co-ordinator wins Award for innovation.
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Welcome to the latest edition of news and views.
The message that risk management needs to be embedded in the culture and working practices at all levels of an organisation cannot be overstated. The ongoing challenge is to ensure that every individual, regardless of their role or position feels involved and
motivated to play their part.
Schools illustrate many of the difficulties encountered. Risk management is unlikely to be high on the agenda of busy teachers striving to deliver the national curriculum to help their school meet its targets. Yet arson in schools is now reaching proportions that threaten their livelihood and the education of large numbers of children.
Deliberate fire-setting in schools cost a staggering £96.6 million in 2002 and Zurich Municipal, as the principal school insurer, wants to tackle the issue in a radically
different way. Last month (September), we launched a ground-breaking partnership to involve the whole school and wider community in an education initiative
designed to teach children about the dangers of arson and the damage it does to the community of which they are a part.
Taking the message out to the community that arson can be ‘combated together’ is a key part of the strategy that was tested in a pilot scheme in Nottingham in 2000.
Scotland, which was the source of 34% of the total cost of school fire claims in 2002, has been selected as the location for the launch of our innovative approach in
educating how to combat arson.
Zurich Municipal is also making concerted efforts to have fire prevention measures, such as sprinklers, routinely incorporated into school design. We hope that with this twopronged approach on the arson problem we will be able to reduce claims, which, in turn, will help control the rise in property premiums.
The cost to the community of large losses is not only as a result of spiralling property claims but also liability claims. In an article on Conditional Fee Arrangements (CFAs) Alan Hunter, Zurich Municipal’s Claims Manager makes the point that although CFAs have achieved one desired effect, namely that of increasing access to justice for those on low incomes, it has been at a cost.
He comments on how scarce public funds are being deflected from front-line services to pay for claims.
Our role is to work with customers to reduce the costs of such claims, not just by processing them as efficiently as possible, but also by promoting ways to reduce the risks. In this issue we look at how Local Authorities can involve their elected members in the risk management culture and how accidents in hospitals and schools can be reduced by a stronger emphasis on risk management.
We also bring you up to date with our input on two important issues currently receiving considerable comment in the media - the pressure on maintaining the appropriate level of Employers Liability insurance and the provision of insurance for voluntary and community organisations. Both are areas where Government and the insurance industry are working together to provide
acceptable yet practical solutions.
Finally Zurich Municipal is always pleased to applaud the individual efforts of those who work in pursuit of improving risk management. As one of the three main
sponsors of the ALARM awards, we congratulate all those who received recognition for their work this year. In addition, we would like to congratulate Christine Golden, a tax payment and filing initiative coordinator who participated in this year’s Public Servant of the Year Award. Christine not only won the Zurich Municipal sponsored Award for Innovation but also received the coveted overall Public Servant of the Year Award.
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 brief
Six-point stress-code launched A six-point code to address workplace stress has been published by the Health & Safety Executive (HSE). The six standards include reducing job demands, increasing support and
giving staff more control over their work.
Employers who ignore the stress standards could risk legal action. Organisations will be assessed to see if they have reduced stress to manageable levels. If less than 65% to 85% of all staff feel each standard has been met, the company will fail its assessment. The
standards were piloted by 24 firms, and companies are now being invited to implement them. The standards will be refined until the code is formally launched
next year.
Over 13 million working days are lost each year due to stress. Meeting the standards will enable organisations to reduce levels of sickness and increase productivity, in
addition to ensuring they are meeting their legal obligations. The standards clearly identify six main causes of stress, so in the event of a legal action, employers would have a weaker defence by claiming they were not aware of the problem.
The standards are available on the HSE’s website, please visit www.hse.gov.uk or telephone the HSE Infoline on 08701 545500.
Builders’ dust chokes computers
Significant and costly damage to computer equipment at a customer’s premises, which occurred when contractors were installing fire detection equipment in the immediate
vicinity, has highlighted the potential hazards of contractors working near sensitive equipment.
The damage occurred when contractors were drilling into brick walls in the rooms containing the mainframe and servers. The resulting dust blew over the computer
equipment, causing considerable damage. Zurich Municipal advise customers who are planning work around sensitive equipment to take a number of precautionary measures. They include ensuring that contractors have carried out a risk assessment and detailed all precautions they are taking to protect
computer equipment. This should always include adequately protecting all equipment within the room with dust sheets and turning off air conditioning while drilling is taking place.
Consultation on new legislation
The Government is consulting on proposals to indemnify council members and officers.
The consultation paper and draft Order, published by the Office of the Deputy Prime Minister, will clarify the circumstances in which an authority can provide an
indemnity. They are:
If the member had acted honestly and in good faith when taking the action, giving rise to the liability
If the authority was found to have acted outside its powers but at the point at which the member or
officer acted, they honestly and reasonably believed that the action they gave was within the powers
of the authority.
The aim is to clarify the current uncertainty about the powers that public service providers, such as local authorities, town and parish councils and fire authorities, have to indemnify their members and officers out of public funds for any personal liability arising from actions or decisions taken by them in
the course of their official duties. For further information, please visit www.odpm.gov.uk
Zurich Municipal and IDeA jointly back new category in LGC awards
Zurich Municipal and the Improvement & Development
Agency (IDeA) are jointly backing a new category of ‘most improved council’ in the Local Government Chronicle (LGC) awards for excellence 2004.
The awards were launched at the LGA conference in Harrogate in July. The judges will be looking for hard evidence of substantial service improvements. The closing date for entries is October 24.
Violence, a workplace hazard
A recent Home Office crime survey indicates there were over 1.3 million incidents of violence at work in England and Wales during 1999.
It is believed that 604,000 workers suffered at least one violent incident, with 304,000 physical assaults and 395,000 threatened in various incidents.
Employers have a duty to protect their staff from foreseeable violence at work and should establish an effective strategy to protect both employees and customers from violence in the workplace. They are advised to adopt a risk management strategy, which enables them to check to see if there is a problem in the
workplace, decide which action to take if appropriate, take the action and then check the control measures have been successful.
Tired of long working hours
A review by the Health & Safety Laboratory (HSL) suggests a link between working long hours and
fatigue.
Evidence on accidents and performance also indicated that long hours are associated with fatigue.
The HSL recommend that further research is carried out on the relationship between long working hours and health and safety matters and to investigate whether 48 hours a week is the appropriate ‘cut-off ’ for the maximum length of time an individual should work.
For further information please visit www.hse.gov.uk
Health Protection Agency
A new ‘one-stop-shop’ public protection body will act as an early warning system to pick up diseases and new threats to health.
The Health Protection Agency (HPA) came into operation in April and pulls together expertise and functions from several bodies, including, the Public Health Laboratory
Service and the Communicable Disease Surveillance Centre.
The HPA will operate in England and Wales and will work closely with the National Radiological Protection Board (NRPB) until new legislation is enacted, after which
functions currently undertaken by the NRPB should pass to the HPA.
Lively debate in North West
The bi-annual conference of the Insurance Officers Group in the North West in September had
chosen the apt title, ‘Ever Shifting Sands’, as the subject
matter ranged over the broad issues of insurance and claims.
There was plenty for the 150 delegates to get their teeth into as they listened to a number of speakers, including several from Zurich Municipal. Subjects included claims issues and trends and the complexities of preparing witnesses for court. In workshop sessions
delegates were able to delve further into topical subjects which included, dyslexia/failure to educate, housing disrepair, managing occupational road risks and
combating fraudulent claims.
Such subjects are of increasing concern to local authorities and their insurers and the delegates found plenty of useful information to discuss on the day and to share with colleagues in their own authorities.
Prompt payment is greatly appreciated
The Late Payment of Commercial Debts (Interest) Act was introduced on 1 November 1998 to encourage purchasers to pay on time by giving businesses
the right to claim interest on bills that are paid late.
From 1 November 2002, all businesses and the public sector have had a statutory right to claim interest from all businesses and the public sector on debts incurred under contracts agreed after that date.
Insurance cover for Zurich Municipal customers is provided on condition that premium payments are received within the credit terms stated in the tender document. Generally this states that payment should be
received by us within 30 days of the risk inception date.
The majority of customers comply with these terms, but a few do not. The tender document also states that 1% interest will be charged each month or part of it for payments that do not arise within the credit terms.
Customers are advised that such a charge is to be levied in the future and therefore it is to your benefit as well as our own, if payments are made on time. We appreciate your co-operation in this matter.
A User's Guide to the late payment legislation has been produced by 'Better Payment Practice Campaign', a public private partnership with the Department of Trade and Industry. For further information, please visit
www.payontime.co.uk
Switching Numbers
We would like to take this opportunity to let our customers know that as from 1 January 2004
our head office switchboard number will be changing.
The current number 01252 522000 is changing to 0870 2418050. This number is ready and available for our customers to use now.
We wish to emphasise that this is the only number that is changing. All other numbers, including our direct dial numbers remain unchanged.
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How can public services protect the public purse? Alan Hunter, Zurich Municipal Claims Manager discusses.
Conditional Fee Agreements (CFAs) have been in place since 2000, introduced in response to the Government’s scaling back of the legal aid budget. Designed to ensure that the reductions did not restrict access to justice for
those on lower incomes, it seems that they have served their purpose.
Responses to a survey conducted amongst 212 councils by Zurich Municipal and the Local Government Association (LGA) showed that 60% feel that the introduction of CFAs provides better access to justice for
residents on low or reduced incomes.
But this is not the end of the story. It is undoubtedly the case that CFAs have increased the legal costs associated with a compensation claim. With public services forced to fund these increased legal costs,
the reality is that the burden of funding access to justice has simply been shifted from the legal aid budget to the budgets of individual public services, in turn reducing
the funds available for front-line services and ultimately shifting the burden on to the taxpayer.
The survey results clearly show that nowin, no-fee legal agreements are hitting public service budgets, forcing spending on front line services down, and council tax
bills up. According to 85% of councils the introduction of CFAs has increased the annual cost to their authority of handling compensation claims and 87% say the
number of compensation claims against councils has also increased. 68% report an increase in the number of tenuous or fraudulent claims since the introduction of
CFAs.
Asked to name the major drawbacks of CFAs, 76% believe that the higher premiums eventually get passed on in higher taxes, 66% think unscrupulous advisors will exploit the opportunity to make money and 61% say resources spent dealing with claims could be devoted to
improving front line services. CFAs are undoubtedly here to stay, so what can public service providers do to reduce their impact on budget and frontline services?
There are positive signs that the courts are finally beginning to impose some rational rulings that might help to resolve some of the disputes between claimant lawyers and the insurance industry. The Court of Appeal recently delivered judgment in four linked appeals on the issue of recoverable costs under CFAs, which has started to build sensible parameters for After the
Event (ATE) insurance fees.
However, there is no room for complacency. Worryingly, only 1% of those surveyed had received advice and
guidance from the Government on how to deal with the consequences of CFAs and it’s clear that action still needs to be taken to mitigate the associated legal costs. Public service providers need to ensure that
they adopt a sound risk management policy around early notification of accidents and follow best practice around inspection systems and maintaining records.
Zurich Municipal is working with customers to ensure that claims are processed smoothly and efficiently. Where liability is clear, customers are urged to
settle as soon as possible – dramatically reducing the success fees that the lawyers can claim. Of course this does not mean rolling over in the face of every claim but
where there is absolutely no chance of a successful defence, a swift admission of liability can dramatically reduce costs.
Encouragingly, there is evidence that a number of public service providers are beginning to tackle the issues raised by CFAs. Nearly a third (31%) report that the
introduction of CFAs has caused them to make significant changes to the way they handle claims for compensation and 42% say they are in the process of developing detailed risk management procedures
supported by staff training. Other measures recently introduced or being developed are clear customer standards for all services (37%), effective monitoring of problem areas (36%) and easy access to the provider
and information on how to contact them with queries (34%). CFAs were introduced to open up access to justice, but they also created a problem, because the regulations do not clearly set out what constitutes a valid amount recoverable for success fees and insurance
premiums. Public service providers must examine their procedures to ensure claims are processed swiftly, admit liability, where there is no defence, quickly to reduce
lawyers’ success fees and develop effective risk management strategies amongst front line staff and service delivery departments. In doing so, they can help to protect their budgets and ultimately, the public purse.
A platform for discussion, regarding the impact of CFAs, was provided at a special conference on June 9, attended by risk managers and insurance officers.
The results of the Zurich Municipal/LGA research were presented to delegates at the LGA Annual Conference in July. A full report will be published in due course.
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Outlook for a stronger insurance market
The state of the insurance market and the impact of two
years of substantial rate increases continues to cause
concern within public service bodies in the lead up to the 2004 renewal season.
Market conditions significantly reduced public service insurance pricing in 1998 to unsustainable levels, leading to price corrections in 2002/2003. The balance has now been redressed and the economic foundations have been laid for realistic and sustainable pricing for the future. The worst is over, the market is recovering and inflationary or single figure increases will become more widespread. This period of greater stability in pricing will bring about a new confidence across the sector and result in a greater interest in public service risks from the insurance market.
The attention paid to risk is one tactic which has helped to calm market conditions. Public sector bodies are
beginning to become more receptive to developing and rolling out risk management strategies. This has both forced insurance companies to diversify their services in order to support their customers more ably, and also encourage the industry to take a hard look at potential risks and pitfalls. The aim of the game is not only greater
accountability but a recognition that we have a greater responsibility to protect service users from a cross-section of risks. The correct procedures and processes can only ensure that the industry opens its doors to the best possible insurance terms.
The argument might be quite straightforward until complications are added to the mix. Ensuring low premiums is not a quick fix. They are tailor-made and each risk is underwritten individually. It is dependent on experience and those risks which carry a poor track record will attract higher than average price increases.
Greater stability cannot, therefore, be guaranteed across the board, as the insurance market will still be driven by a number of factors it is unable to control.
This includes issues such as fire damage and severe weather conditions, occupational disease and asbestosis. Insurance companies do not have the financial ability to carry the can for such issues, but neither will premium increases be considered to be a
trend - it will remain a reaction to market forces and a careful study of the risk portfolio.
Despite the belt tightening and frugality, the state of insurance in the public sector has not been as rocky as the private sector which has had a heavy load to bear. The public sector market may well be seeing the
dawn of a new positive era, but some trades in the private sector are still experiencing difficulty in placing insurance at any price. The public sector can take strength from the fact that the insurance market is cyclical; it will fluctuate, it will go up and down, there
will always been good news, as well as bad. Despite price rises of the past couple of years, the current premium bill for many local authorities remains below 1997 levels. Early indications are that the new cycle will
dramatically rejuvenate the market again in 2004. New confidence across the sector is developing.
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First stage report on employers’ liability
An initial report by the Ministry of Work and Pensions into Employers’ Liability Compulsory Insurance (ELCI), has set out the Government’s agenda for progress on this issue. A further report will be published in the
autumn.
Government action was prompted by the concerns of many stakeholders about the effectiveness of the current system and the soaring costs of ELCI, which are estimated to have risen by an average of 40%. The
dramatic rise has forced some businesses to close while some others are thought to be trading illegally, without insurance cover.
The significant factors which have brought matters to a head in the last few years are identified in the Government report as: the underwriting cycle; external impacts on the insurance market, such as recent terrorist attacks; legal costs rising through ‘no-win, nofee’ litigation and uncertainty over long-tail risks (for instances, occupational diseases such as asbestosis that develop over many years).
Zurich Municipal has taken an active part in the Government review of ELCI. It has been involved in calls by the Association of British Insurers (ABI) for positive reforms to reflect the concerns around the underlying longerterm stability of the current employers’ liability system.
Commenting on the Government’s first-stage report, Zurich Municipal’s Underwriting Director, Alan Woof, said, “The current system has remained broadly unchanged for 30 years and all stakeholders including employers, unions, insurers and Government can see areas where improvements can be made. This timely Government review is to be welcomed.”
There have already been initiatives to ease some of the short term problems, including agreements between insurance companies and trade associations to provide their members with insurance at discounted rates; and the development, with insurers, of self-assessment
insurance so that companies can provide insurers with better and more relevant information about risk management policies.
Smaller businesses often complain that their premiums do not reflect their good health and safety practices and claims record. Insurers, brokers and business representatives are looking at practical ways to make premiums more reflexctive on individual risk.
The Government report has identified the following areas where it will take further action, including:
Working with business, industry and other stakeholders to further evaluate the evidence for separating long-term occupational disease risks from accident risks. It has said that more evidence is
required
Working with stakeholders to maximise the benefits for EL of current initiatives within the legal system. The Government will also liaise with stakeholders on the
options for alternative dispute resolution arrangements.
Reforming the arrangements for enforcement of EL
Making rehabilitation a more central factor in the UK workers’ compensation system.
“I am delighted to see that the Government is planning to undertake such a fundamental review which encompasses all the current major problem areas,” said Alan Woof.
The ABI has recently published independently commissioned research on rehabilitation of workers following accidents or illness which suggests that the cost of compensation paid through employers’ liability insurance could be reduced by up to 40% if ‘return to work’ schemes are introduced for victims of workplace accidents and diseases. However, their research has shown that this level of saving can only be achieved if the schemes are obligatory and widely used.
Researchers examined experience in other parts of the world that enable victims of workrelated accidents or ill-health to return to work. Overall, it was found that return to work is beneficial to employees because it
enhances morale, reduces loss of skills and results in shorter absences from work.
However, the research has also pointed to overseas experience where such schemes only offer full value if employers and claimants are obliged to engage in the process. The TUC has argued that making rehabilitation
compulsory for employers and workers ‘wouldn’t work in practice’ and that ‘forcing people undermines the whole essence of rehabilitation’.
For a copy of the full report from the Ministry for Work and Pensions, please visit www.dwp.gov.uk
For many small businesses and contractors, Zurich's Small Business Direct can provide a complete package including Employers Liability. With a minimum premium of
only £150.00 they can be very competitive. Small Business Direct can also provide cover in accordance with your requirements on cover and for the right limit of indemnity. We are even able to arrange schemes that
will assist with the vetting of contractors. For further information call 0800 0154130 or email businessdirect@uk.zurich.com and quote either ZMMOTOR, ZMPROP or ZMLIAB.
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Tighter regime for control and processing data
The Data Protection Act 1998, which came into force on
1 March 2000, has introduced a much tighter regime for the control and processing of data.
The new Act, which repealed the Data Protection Act 1984, made new provision for the regulation
of the processing of information relating to individuals, including the obtaining, holding, use or disclosure of such information.
Henry Bermingham, Solicitor at Berrymans Lace Mawer looks at the implications.
The Act contains a number of new criminal provisions which will apply to public authorities and officers in those authorities who are responsible for processing
information contrary to the Act. This is an important piece of legislation and public authorities are well advised to treat it seriously.
The problem with Data Protection In the two and a half years since the Act came into force, both solicitors and Zurich Municipal have experienced increasing problems with public authorities reluctant to release documentation in connection with claims. We encounter the same reason time and again – ‘the Data Protection Act’. Two recent examples from my caseload include,
a) The claimant child was assaulted by one of her classmates. It was alleged that the assailant had a documented tendency towards violence. Naturally,
his school file would reveal whether or not this was true. The authority responsible for the school would not
consent to release of the assailant’s file to me without a Court Order.
b) A defendant Highway Authority refused to provide me with the address of a retired Highways Inspector who
was a witness in the claim.
In both cases the Data Protection Act was cited as the reason for non-co-operation.
Unfortunately, this problem is becoming more common, hampering insurers’ ability to respond effectively to claims because they cannot provide protocol disclosure or conduct full investigations. This in turn has seen an increase in the number of pre-action disclosure applications by claimants’ solicitors. These increase the eventual costs payable by both insurers and their customers.
Once litigation has started, these difficulties slow the defence of proceedings and, in some extreme cases, carry the danger that defences could be struck out or that we will not be allowed to rely on the documents.
The solution
The answer to all of these problems lies in section 35 of the Data Protection Act – a general exemption to the Data Protection Rules in the case of legal proceedings. That section is incredibly wide-ranging.
(1) Personal Data is exempt from the non-disclosure provisions where the disclosure is required by or under any enactment, by any rule of law or by Order of the Court.
(2) Personal Data is exempt from the non-disclosure provisions where the disclosure is necessary:
(a) for the purpose of, or in connection with, any legal proceedings (including prospective legal proceedings) or
(b) for the purpose of obtaining legal advice, or is otherwise necessary for the purposes of establishing, exercising or defending legal rights.’
This is the good news – if documents are required for legal proceedings (actual or contemplated), you are safe to release them. The section itself is so wide that it covers all documents necessary for legal proceedings
and obtaining legal advise. It is a blanket exemption from the Act – a true ‘get-out-ofjail- free’ card if the Information Commissioner were to question your decision to send sensitive documents to your insurer or
solicitor.
Public authorities should draw further comfort from the fact that the test of necessity set out in the Act is wider even than the duty to provide standard disclosure in litigation. There, the release of information is governed
by a relevance test (i.e. the documents assist our case, harm our case or assist the claimant’s case). Essentially, the necessity test comes down to what the solicitor or insurer consider they need to see in order to defend the case. That is a very wide exemption indeed.
The general rule is, therefore, very simple - supplying documents to solicitors or insurers does not breach the Act, provided this is for legal proceedings.
Practical application
Pre-litigation companies like Zurich Municipal will ask public authorities for the documentation which is necessary to defend the case. There should be no problem with disclosure of this – see section 35(2)(a) –
because disclosure is allowed in connection with any legal proceedings (including prospective proceedings). If Zurich Municipal asks to see the documents, it can safely be assumed they are necessary and should be released.
Once litigation has started, solicitors will ask for the documents they need to advise the insurer and client to defend the case. Again, the documentation is disclosable – see sections 35(2)(a) and (b). Further, once the court
makes an order for standard disclosure (which happens in virtually all cases) the public authority will be required to release documentation by Order of the Court – see
section 35(1).
The final point to bear in mind is that if the Information Commissioner receives a complaint about processing/releasing information, it is unlikely he would hold a public authority accountable where solicitors or an insurer advise the public authority to make disclosure.
However, I must sound one note of warning – the information must be necessary. If you release documents that are utterly unrelated to the litigation you will not be able to claim the exemption. For example, the public authority which releases education records in
a road accident claim may have a problem!
The future
If Zurich Municipal or your solicitors request sensitive documentation which is necessary for proceedings you should release it. There are serious sanctions for breaches of the Data Protection Act 1998 but if documents are necessary for defending legal proceedings, you are safe to release them in accordance with section 35. The message on Data Protection must, therefore, be ‘don’t panic’. Solicitors and Zurich Municipal will not lure public authorities into breaches of the Data Protection Act.
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Health and Safety in NHS hospitals
Poor health and safety practices in NHS hospitals have led to a rise of almost a quarter in the number of accidents involving NHS staff, according to a report
by the National Audit Office (NAO).
Poor compliance with health and safety practices was mainly attributed to increased workloads and staff shortages.
Despite Government targets set in 1999 to reduce the number of accidents and levels of sickness amongst NHS staff by 20% by March 2002 and 30% by 2003, the number increased by 24% in 2001-02. Incidents of
violence and aggression increased in the same period by 13%, and recorded accidents by 24%. The costs to the NHS are enormous; in 2001-02 the NHS spent around
1.2 billion on agency staff to cover staff absences and vacancies.
The NAO report looks at progress in reducing the extent and costs of accidents to staff and improving the management of particular health and safety risks in the NHS workforce.
Accidents involving NHS staff were caused mostly by the moving and handling of patients, needle injuries, slips, trips, falls and exposure to hazardous substances. Workrelated stress has emerged as a serious issue,
with over two-thirds of NHS trusts reporting an increase in the last three years.
Zurich Municipal Health Manager, Mick Kelly said, “Good health and safety risk management measures will help to reduce accidents, and provide a safe workplace for
staff and an improved environment for patients.
We encourage trusts to not only carry out risk assessments but review them on a regular basis so they can see the possible hurdles and problems before they stumble over them. This is good practice and prevention is better than cure.”
The report notes that, in some NHS trusts, the number of accidents had fallen as a result of improved training and practices, whilst in others there had been an increase due to improved awareness and reporting. However, in all trusts, the under-reporting of accidents
remained a significant problem. Poor compliance with good practice, leading to an increase in accidents, was attributed to staff shortages and increased workloads by one fifth of trusts.
The NAO recommends that the NHS develops a national health and safety strategy and provides more guidance for trusts. The range of national initiatives on health and
safety are produced and monitored by different parts of the service, for instance, the Controls Assurance Unit, NHS Estates etc.
As a consequence, a central co-ordinating function for health and safety that would allow the Department of Health to produce an NHS-wide occupational health and safety strategy, similar to the one developed for the
NHS in Scotland, is absent.
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New insurance options for voluntary aided schools
Proposed changes to the way that voluntary aided (VA) schools are insured, have led Zurich Municipal to propose two insurance options for local education authorities (LEAs) and VA schools to consider.
The options (see separate box) provide either a complete package of insurance, covering all parties involved; or cover for LEAs only, with governors, therefore, obliged to make their own arrangements.
The need to clarify insurance arrangements for voluntary aided schools has arisen because of changes that came into effect in 2002. Then voluntary aided school governing bodies took over responsibility for most
capital expenditure that was previously the responsibilities of their LEA (except playing fields and any buildings on them), but governing bodies no longer had any responsibility for funding revenue repairs.
At the same time the rate of capital grant support to them was increased from 85% to 90%.
The insurance implications of these changes will have varied across the country, depending on the nature of previous insurance arrangements LEAs had with VA
schools in their area. Prior to 2002 there was confusion over funding and insurance issues because governing bodies retained some responsibilities for carrying out external repairs. There was also uncertainty over who
should pay the premiums and as a result insurance may either have been duplicated or inadequate. While most issues were clarified in 2002, there were still some grey
areas on which clear direction from the Department for Educational and Skills (DfES) was needed. Following a recent large loss at a voluntary aided school, Zurich
Municipal has been in discussion with the Department to resolve these outstanding issues. As a result clarification has been received on:
Governors are responsible for buildings, both inside and out, and furniture, fixtures and fittings. However, if losses are less than the £2,000 de minimus level, they are responsibility of the LEA. Any losses which are the governors’ responsibilities receive 90% grant funding, so their exposure is limited to 10% of the reinstatement cost
Contents, excluding furniture, fixtures and fittings are the responsibility of the LEA. This is irrespective of value, i.e. if a loss exceeds the £2,000 de minimus level, it does not become a ‘capital’ loss (which would be the governor’s responsibility), it remains the responsibility of the LEA
Grounds including pavilions erected in the grounds, and all-weather pitches are the LEA’s responsibility
Computer equipment, servers, etc. are classed as contents and are the LEA’s responsibility.
The DfES made it clear that the responsibility for ensuring appropriate insurance cover was in place rested with the governing body but responsibility for
funding insurance premiums rested exclusively with LEAs. They should either meet such costs centrally or where it was delegated to schools, ensure appropriate
amounts were passed over to reflect the likely premium costs incurred by governors. Option 1 (covering all parties)
VA schools noted as a separate item on your policy
Full buildings and contents reinstatement sum insured to apply, for consistency
Insured perils and excess the same as your maintained schools
Policy covers LEA responsibilities only
Contingency cover included in relation to governors responsibilities
Premium rate is 35% of the rate for your maintained schools.
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School arson doused by innovative campaign
The number of arson attacks on schools is growing at a
staggering rate, pushing the issue further up the political agenda.
Last year the cost of schools deliberately set on fire reached an all time high of £96.6 million, which is equivalent to the cost of building around 100 new primary schools. It is estimated that almost three-quarters of all fires in schools are started deliberately.
Furthermore, new statistics show that one-third of such attacks across the UK, and one-half in metropolitan areas, occur during the daytime. This has led to heightened concerns for the safety of pupils and staff.
In light of this, a new initiative aimed at tackling the root cause of the problem has been developed by Zurich Municipal, and is supported by the Arson Prevention Bureau (APB).
Arson Combated Together (ACT) is a unique schools based programme designed to combat fire setting in schools. The programme begins with a specially
commissioned ‘theatre in education’ performance and workshop. The performance uses actors to demonstrate to children the consequences of arson through a hard hitting visual performance. This is followed up by various work programmes, which can be used within the school timetable including means of assessing the risk of malicious fires and steps to minimise that risk. These activities are supported by community partnerships that
are created around the schools. It is being rolled out to schools in North Lanarkshire, Edinburgh, Glasgow, Leeds, Bradford, Doncaster and in Nottingham.
The initiative was launched at an event attended by special guests from the fire brigade, police, local councils and schools. Held at Caldervale School, North Lanarkshire, in Scotland, guests heard united messages from speakers including; Karen Whitefield, MSP Airdrie & Shotts; Larry Stokes, Zurich Municipal Underwriting
Manager and Chair of Arson Prevention Bureau’s Schools Working Group; Gavin Whitefield, North Lanarkshire Council Chief Executive; and Brian Sweeney, Strathcylde Deputy Fire Master.
The ACT Scheme
The aims and objectives of Arson Combated Together (ACT) are:
To raise awareness of the problem of fire setting – particularly in schools – and its consequences (emotional, social, financial) to the school, to all those
involved with the school (pupils, parents, teachers, governors), to the neighbours and the local community in general.
To educate all parties on how to reduce malicious fires and how to carry out regular risk assessment/arson prevention routines
To carry out an arson prevention programme, linked into the school curriculum and within school timetables
To encourage “good citizenship”, a key part of the national curriculum, both within and outside the school
environment, and to encourage the whole community to play its part in the prevention of arson.
Since its opening in 1970, Caldervale School has suffered three major arson attacks. The worst incident occurred in 1988 when the technical block was set alight during a lunch hour. The fire brigade had to be called out and major damage was caused. In 1996, the school
was broken into overnight and a classroom set alight. The fire brigade was called out again and more damage caused. The cost of rebuilding one classroom, lost equipment and water damage amounted to around £50,000 – £60,000. In 2000, a classroom was again set
alight. The school suffers around three to four minor incidents per year because of bins being set alight by pranksters. These are usually discovered and dealt with quickly. No damage results, but there is always the
chance of something more serious developing and even the risk of lives being lost.
Statistics demonstrate the full extent of the problem, revealing that:
The number of large school fires that cost more than £100K are increasing rapidly
The worst time for malicious fire setting in schools is May, due to pressure of exams, warmer weather, lighter days and children being outside more. There is also
an increase in school arson just before and just after the summer holiday period
In recent years there have been an average of three arson attacks on schools every day. ACT is the main educational programme in a diverse series of initiatives designed to tackle the rise of arson in schools. The installation of sprinkler systems in schools is another
important issue on the agenda and Zurich Municipal has written to the Government urging it to make sprinklers compulsory in all new and refurbished schools. Following the Yarls Wood fire in early 2002, the Home Office made sprinklers compulsory in all new detention centres, but no such rule applies to schools. The installation of sprinklers in schools could save lives and money by limiting damage.
Who Commits Arson?
Andrew Muckley, Educational Psychologist for Redcar and Cleveland Borough Council is a leading authority in juvenile fire setting. He believes the anger felt by arsonists impairs their judgement – the damage a fire
will cause is unlikely to be a part of their decision making process. This indication that young fire setters are unlikely to have thought through the consequences of their actions provides another common theme. The long-term benefits of arson are minimal and certainly less than those of other crimes such as theft, burglary or racing stolen cars. Arson is a crime of opportunity, not
premeditation, which youngsters commit as a reaction against social order, an act of vengeance or a jealous rage reaction. Others commit it merely for pleasure.
Muckley states that despite the amount of funds spent on preventative measures to reduce school arson by the police, fire service and insurers, by installing fencing, cameras and alarms, the key is to educate all children
about the consequences of arson. He fully supports the idea of integrating fire setting awareness into the curriculum, as a way to help promote anti-fire setting attitudes. Muckley is challenging on this issue,
asserting that, “first hand evidence proves that this approach is fundamental to changing a child’s perception of deliberate fire starting, and dramatically reduces the
likelihood of re-offending to almost nil”.
Majority of arson committed by 10-19year olds:
47% of all offenders found guilty of arson are aged 15-19
65% of all offenders cautioned for arson are aged 10-14
31% of all offenders cautioned for arson are aged 15-19.
People cautioned or arrested for arson:
Most are teenagers
Many carry out the offence while under
the influence of drinks and drugs
Come from deprived inner city areas
Families are already vulnerable and have few resources
Large proportion have had problems during childhood.
(Information cited from The Prevention and Control of Arson, Adair Lewis, Fire Prevention Association)
Why do they commit arson?
Reaction against social order
Vengeance
Jealous rage reaction
Concealment
Pleasure.
Arson is a crime of opportunity, not usually premeditated attack. Therefore, education programmes such as ACT have an important role to play in raising awareness
of this problem and enabling children to understand the consequences of their actions.
Larry Stokes of Zurich Municipal, who also chairs the Arson Prevention Bureau’s Arson in Schools Working
Group said, “Hundreds of schools are hit by malicious fires each year causing massive disruption to the education of thousands of children and often destroying years of hard work by teachers and pupils alike to build successful schools.
“These mindless attacks cost millions of pounds that could be better spent building and equipping new schools or employing more teachers. When the risk
of loss of life and the human costs of lost work, disruption to education and the effect on communities of major fires are taken into account the cost is far greater.
“We are delighted to be able to work with local authorities to help identify long term educational solutions to cut the number of attacks on schools.”
Michael O’Neill, Director of Education of North Lanarkshire Council said, “We are grateful to Zurich Municipal for sponsoring this ground breaking project.
We hope that the results of this campaign can be used to develop a tried and tested arson prevention programme that can be integrated into the school
curriculum across the country, in line with the government’s introduction of ‘positive citizenship’ into the national curriculum.”
Jane Milne, Chief Executive of the Arson Prevention Bureau said, “Malicious fire-setting is a major
problem for schools, and its impact cannot be underestimated. The key to tackling the problem lies in the multiagency approach, through raising awareness of the issue and developing best practice guidelines. This is why the Arson Prevention Bureau welcomes this
unique initiative as a positive step in the fight against arson.”
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Insurance gap jeopardises community groups
A report commissioned by the Government’s Active Community Unit (ACU), has highlighted the difficulties experienced by voluntary and community
organisations in obtaining reasonably priced insurance cover. It stresses the need for the insurance industry, the Government, local authorities and the voluntary and community sector itself to find viable solutions to the problem.
The ACU, which has a budget of £188 million to invest in local communities, is keen to safeguard insurance for small organisations. The unwillingness of some insurance companies to cover the sector puts at risk the Government’s stated desire to see voluntary and ommunity organisations playing a prominent role longside statutory and private providers.
Zurich Municipal, through its Community Insurance Centre (CIC), is one of only a handful of companies willing to offer insurance to the voluntary and community
sector (VCS). Over the last 12 months CIC has stepped in to provide a number of small voluntary groups with cover at reasonable premiums. Last summer their prompt response enabled a conservation group to continue their work in the community. Zurich Municipal has played an active role in the insurance cover working group (ICWG), which was set up by the ACU in 2002, to study the issues and produce the subsequent report.
One of the reasons insurers have changed their attitude to the sector is the general turmoil in the insurance market and some exceptionally large losses suffered in recent years. Other factors cited in the report include the collapse of Independent Insurance, the September 11 terrorist attacks and the ensuring doubling of the cost of reinsurance protection, conditional fee
arrangements, civil justice reforms and new claims for stress, violence and sickness in the workplace.
The report has found that it is the smallest organisations, such as community groups for the elderly, which have suffered most. Many of them are independent and have no way of contributing to bulk purchase schemes through a national umbrella body.
Large organisations face different problems. Many insurers consider them to be operating the same level of turnover as their counterparts in the private sector and therefore expect them to pay the same level of rates for insurance as large commercial organisations.
The care and counselling sector also report specific difficulties. In spite of good risk management and low claims records, the industry appears to be reluctant to provide insurance to an adequate level. This is partly
because of the perceived future ‘long tail’ risks associated with this type of activity, for example back injuries, stress or child abuse claims.
Other areas where insurance cover is difficult to obtain include activities overseas, outdoor events and recycling projects. The report observes that the VCS is unable to pass on increased costs to their paying ‘customers’
because there usually are none. The report concludes that the insurance industry as a whole lacks an understanding of the VCS and as a result is reluctant to provide cover. Risk management has become the major
focus of attention in the insurance industry and the VCS suffers from a perception that the sector is staffed by “well-meaning volunteers but lack understanding regarding risk assessments and health and safety”.
Communication between the sector and the insurance industry needs improvement.
Zurich Municipal has suggested that a database, or directory of insurance providers and advisors, should be provided to help groups within the VCS to identify their needs and to direct them to the most appropriate
source of help.
The report highlights key issues which face the VCS:
Determining level of cover
Reducing premiums
Avoiding exclusions which prevent VCS activity
No-win, no-fee and other legal system issues
Creating a more competitive and accessible market place.
The report concludes with an action plan for Government, the industry, local authorities and the VCS. Among the action points for Government are that it should act as ‘honest broker’ at the highest level, abolish insurance premium tax and provide a Home Office insurance scheme. The insurance industry could provide more bulk purchasing schemes and establish insurance mutual clubs. Local authorities should develop an insurance toolkit and create associations. Among the
suggestions for the VCS are that they should improve risk management and promote accreditation to quality standards.
In response to requests from charities, Zurich Municipal, together with the Association of British Insurers (ABI), recently organised a practical, interactive seminar to examine the whole issue of restricted insurance capacity
in the voluntary and charitable sector. The educational session examined practical ways of increasing access to insurance and Zurich delivered a key note speech suggesting that charities may be able to widen their options by embracing risk management at all levels
within their organisation.
Zurich Municipal has a strong commitment to the voluntary and community sector and will use its relationship with local authorities to work with them on finding the best way to implement the report’s recommendations. For further information please telephone CIC on 084 5725 4910 or email community@zurichmunicipal.com
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Website hitting the target
The Zurich Municipal website is now over two years old and with over 3000 hits a day and over 1600 unique visitors per month, it is clearly a service valued by customers.
The main aim of the site is to provide business and finance managers with information and to offer them on-line services. Additional information includes articles of interest and briefings, including current press releases. Online services are constantly being reviewed and
updated so that members can enter a secure site and seek specific information or track the progress of claims.
Website facilities include:
QLAS download facility – allows QLAS customers to collect their data downloads direct from the website rather than having them sent by post
Milestone Management - enabling customers to track the progress of claims, to identify outstanding claims and to monitor total loss exposure. Claims data
download - provision of high-level claims data in a comma delimited text file
Products and services - geared to each different type of customer, e.g. health, schools, higher education, local authorities
Publications - including Court Circular, which covers current court cases, and News & Views
Press releases - keeping you up-to-date with the latest news from Zurich Municipal.
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ALARM in action
Compensation fraud is a subject that provokes growing concern and debate, although interestingly, while some point to the evidence of a worrying rise in such fraud
against the public sector, there are others who deny that they have a problem in their organisation.
Statistical evidence indicates that such fraud is on the increase, with all the costs that entails to public bodies, their insurers and ultimately the public they seek to serve. The ALARM working group looking at combating fraud expects to produce guidelines later in the year and these should be of interest, whatever view you take.
This working group is the most active of our Special Interest Groups (SIGs) and proves that participation by members can lead to positive pieces of practical work, which benefit us all. ALARM is keen to progress other topics of mutual interest but we cannot do this without
the active participation of those with specialist knowledge, who are able and willing to contribute for the benefit of all ALARM members. If you would like to participate in such a group, please get in touch with me.
Feedback from ALARM’s national conference has been excellent and particularly so for the education sessions. We will have a number of training events running this autumn and please watch your e-mail and our website for further information. In addition we will have several, four-day ‘Managing Risk in the Public Sector’ courses taking place across the country. Please contact the ALARM office for further information.
About ALARM
The national forum for risk management in the public sector represents over 1,300 members across the UK public sector. Sheila Boyce can be contacted on 01494 459166 or email ch.exec@alarm-uk.com
ALARM Awards
Promoting risk management to top of the agenda
The advantages of risk management were showcased at
the ALARM annual conference in June, during a special awards ceremony.
The event, organised by ALARM, recognises excellence in all areas of risk management, and with a high standard of entries the decisionmaking process was not straightforward.
Zurich Municipal, one of three main award sponsors, actively support this initiative and took part in the judging process to identify creative and innovative risk management solutions implemented by the public sector. The aim is to showcase improving services
provided for the benefit of the wider community.
North Yorkshire County Council stole the show with a hat trick of awards for a health and safety initiative, an asset protection initiative and by getting risk anagement on the corporate agenda.
Zurich Municipal Marketing Manager, Rachel Coventry said: “If risk is not managed properly in the public sector, services can be disrupted and taxpayers money wasted. Put simply, good risk management is about
ensuring that the council is equipped to achieve its objectives.
“The quality of the entries for this year’s award was very high and the winning councils have demonstrated the importance they attach to risk management. It is a tribute to the hard work of all the staff involved and we are delighted to be able to sponsor the award.”
Winners:
Risk Manager of the Year: Michael Sloniowski, Risk Manager at Sutton Borough Council, received this prestigious award, which recognises the personal contribution of an individual in promoting risk management both within their own organisation and across the wider public sector. Judges were impressed
by Michael’s work in instilling the principles of risk management across the Council and promoting the risk management message to the wider spectrum.
Human Resources or Health and Safety Initiative: North Yorkshire County Council won this category for an initiative in promoting the importance of back care
amongst both council staff and users of their services.
Asset Protection Initiative: User-friendly booklets designed for schools when managing their Devolved Capital Building Projects won North Yorkshire County Council first prize.
Getting Risk Management on the Corporate Agenda: This entry focused on the Council’s recent efforts to revise and update their corporate approach to risk management. It was won by North Yorkshire County Council
Any other Risk Management Initiative: Coventry City Council won this award for its initiative in designing an affordable insurance product for local citizens.
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New look for Risk Management Advisory Service
Research following the last Risk Management Advisory Service (RMAS) briefing sessions has resulted in a re-design, aimed at providing a better service to customers.
The revised RMAS now includes three oneday seminars each year, conducted at convenient locations nationwide. These sessions include advice on:
Strategic risk management
Operational and physical risk management
Topical claims issues and trends
Updates on current legislative/regulatory issues.
Each session ends with a panel discussion involving all presenters where delegates will have the opportunity to ask questions on specific risk issues on which they would like advice.
An important part of the sessions is the opportunity for an inter-change of ideas with colleagues within local government to facilitate the exchange of ideas and best
practice.
RMAS website Monthly articles are published on the website, including up-to-date information/guidance on strategic, operational and physical risk management issues, detailed briefing material where relevant on specific issues raised at the panel sessions and responses to requests for help and advice sent to info@zurichmunicipal.com
The cost The cost of the service is £1,500 plus VAT. Two attendees from each subscribing authority can attend each briefing session. Should any subscriber wish to send further delegates to any session, they are welcome to do so at a cost of £100 plus VAT per person,
per session.
Consultancy Days
Strategic, operational and physical risk consultancy services to complement RMAS are available if required at an extra cost.
If you do not already subscribe to RMAS and would like to, please email info@zurichmunicipal.com
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A risk of underachievement?
Unless risk management is embedded at the most senior and strategic level within the organisation, local authorities could be hampering their ability to achieve core objectives, argues Sarah Richards, Senior Partner Zurich Municipal Management Services (ZMMS).
With budgets tight, even trying to deliver the basic services that the electorate demand can be a daunting challenge. Yet the new freedoms and flexibilities available to some authorities, and the duty to promote the general economic, social and environmental
well-being of the area, open up the prospect of local authorities trying to do ever more. Against this backdrop, councillors set out their stalls to the electorate, and once elected set the strategic priorities for the council. Officers must then try to deliver the vision and the stated objectives within the budget. In a
utopian world of limitless resources, there might not be much more to say. In reality, however, there are many obstacles in the way. The conclusion that can be drawn from this is that councillors that are serious about
achieving ambitious results for their area must take an interest in the discipline of risk management.
With growing pressure for councils to prove their attitude and ability through various assessments, risk management is coming into prominence as a key element to success. It is also clear that assessments demand that councillors have an important role in
identifying, managing and monitoring strategic risks within their organisation.
In the past, risk management might have been associated with trips and slips or other physical manifestations of risk, and seen as the exclusive preserve of the risk management officer. Today, if leading councillors and officers want to be sure that the authority is going to achieve its objectives, they need to be able to reassure themselves that a strategic approach is being taken to the identification, prioritisation and management of risk.
A strategic approach to risk management requires more than just an assessment of the most obvious risks. It requires a systematic approach to identifying all the risks that threaten the achievement of the council’s
objectives, and to managing these risks.
This process can best be considered as a ‘risk management cycle’. The first step is to identify the risks or obstacles to the achievement of objectives. This exercise needs the involvement of senior managers across the local authority, so that all areas are covered. Once identified, risks need to be analysed to determine the likelihood of them occurring and the impact on the organisation if they do occur. They can then be mapped on to a matrix, which can be used to prioritise risks. Risks with a high likelihood of occurring, and which
would have a serious or catastrophic impact will clearly need to be addressed first. But a line can also be drawn across the matrix, representing the authority’s appetite for risk. Risks that fall below this because of their
low likelihood, low impact, or both, will not be a priority for action.
Where a risk falls above the authority’s appetite for risk, the next priority is to develop action plans to ensure that risks are mitigated and managed. To complete the
risk management cycle, these action plans need to be constantly monitored for progress, and the risk identification process needs to be regularly reviewed and repeated.
At the end of an exercise such as this a local authority will have a good sense of the risks it faces, a clear view of the relevant importance of these risks and a map of
actions.
Local authorities that adopt a strategic risk management approach can be more confident about the achievement of their objectives, spot threats to these achievements
in time to take corrective action, and be more ambitious in the future objectives they set for themselves. Those that do not, are likely to find themselves unable to achieve their objectives and consumed by fire
fighting.
Case study: the District of Easington In 2001 the District of Easington took a decision to embark upon a programme to create a strategic risk management ethos
within the council. They brought in external consultants to advise and assist with the process.
Since then they have made great strides in changing the existing culture of risk management from that of ‘it’s the
responsibility of a few’ to ‘we are all risk managers’.
Training of both officers and members was introduced. This has allowed the officers of the District of Easington to acquire the skills and knowledge to embed a robust and systematic approach to strategic risk management across the organisation. It has also ensured that councillors are able to provide effective support for and scrutiny of the processes put in place.
Interviews were conducted to assess the approach to risk management, revealing that the Council was already well aware of many of its risks, and in many cases actions were already in place to partially address them.
However, although the informal systems of risk management deployed had worked reasonably well in the past, the exercise formalised the approach to risk identification and prioritisation.
This brought clarity to the establishment of the priority risk areas, and allowed the District of Easington to focus on these areas through to the action planning stage.
Easington is also working in partnership with its external and internal auditors, demonstrating how partnerships can be effective in taking on the requirement to monitor and review the risks.
According to Frank Shaw, Cabinet Member for Organisational Development at the District of Easington, “This exercise has ensured we can be confident that the
management team is identifying and managing corporate and strategic risks alongside operational risks. This means we are better able to set the right strategic
priorities and can continue to deliver sustainable and improving services for the community.”
This article recently appeared in Municipal Journal.
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Birthday Honours
Congratulations to the following public servants who received awards in the Queen’s Birthday Honours List.
Commanders of the Order of the British Empire
Andrew Gibson Brown, QPM, Chief Constable, Grampian Police – for services to the Police.
Peter Hampson, QPM, Chief Constable, West Mercia Police – for services to the Police.
Sandra Pauline Hunt, Assistant Chief Executive, London Borough of Newham – for services to Urban gegeneration in London.
Officers of the Order of the British Empire
Ian Roy Cumming, Chief Executive, Morecambe Bay Hospitals NHS Trust – for services to the NHS.
Peter William Daniels, Chief Executive, East Renfrewshire Council – for services to Local Government.
Keith Antony Ford, Chief Executive, Mayday Healthcare NHS Trust – for services to the NHS.
Elizabeth Anne Maclean, Chair, Albyn Housing Society Limited – for services to the community in the Scottish Highlands.
Frederick William Saunders, Chief Executive, East Staffordshire Borough Council – for services to Local Government in the West Midlands.
Caroline, Thompson, Chairman, Highland NHS Board – for services to the NHS in Scotland.
Alexander Bell Watson, Chief Executive, Angus Council – for services to Local Government.
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Fire resisting cladding endorsed by Zurich Municipal
Zurich Municipal are advising customers that sandwich panels installed in new buildings, must conform to the standards laid down by the Loss Prevention Board (LPC).
The Loss Prevention Certification Board, which was set up by the insurance industry for the approval of products, has specified that such panels must comply with LPS1181 or LPS1208. This is to ensure that the panels are non-combustible, or, will not make a significant contribution to the fire growth.
In several recent fires, highly combustible insulation material contained within cladding was a significant factor in the rapid spread of fire. In a recent landmark court case, an architectural firm was sued by an insurer
following a fire in a food plant. They had specified panels with a combustible core for the kitchen area and following a major fire were found liable for specifying panels that assisted the development of the fire. As a result of this case, consultants and architects have
been advised by the insurance industry urgently to review their professional indemnity insurance cover.
Zurich Municipal is particularly concerned about risks to schools where there are a relatively high number of arson incidents.
Zurich Municipal Senior Loss Control Surveyor, Graham Page, said, “We would require sandwich panels to be LPC approved in all new buildings and in existing buildings undergoing extensive refurbishment or
extension. In view of this, it is important that customers consult with their property insurers at the earliest possible stage, when planning new buildings or major refurbishment. Failure to do this may result in increased insurance terms or we may decline the risk completely.”
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Learning to avoid slips and trips in school
New guidance aimed at preventing trips, slips and falls in the education sector has been published.
Such incidents are the most common cause of major injuries in workplaces and the second highest cause of injuries lasting over three-days. According to Health & Safety Executive (HSE) statistics, slips and trips are
a major cause of accidents to education employees, pupils/students and others. Unlike other workplace environments, the majority of people in schools, colleges and universities are not employees but students and pupils. However, education establishments are still esponsible for protecting them against slips and trips.
Education Marketing Manager John Barrett said: “Every pupil deserves to work in a safe environment.
“The number of claims and their value has undoubtedly increased in recent years, and this is due to a number of factors, including a growing claims culture. It is sadly true that we are living in an increasing litigious society.
“However, the number of trips can be limited, and a safer environment provided, by a strict risk management regime, which is key to tackling the issue. Those schools,
colleges and education authorities that have strong inspection regimes in place, have set clear standards for defect recognition, and have an efficient and responsive repair procedures in place, will be more successful
in reducing the chance of accidents.
“It is also essential to have a clear and effective record keeping policy.”
The guidance advises establishments that they should identify the hazards and who is at risk and assess whether existing precautions are adequate. As in any risk assessment, the findings should be recorded
and regularly assessed. In view of the nature of education premises, control measures will vary according to the location and the type of activity being undertaken.
The information is available free from HSE Books.
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Filing co-ordinator wins Award for Innovation
Christine Golden, a tax payment and filing initiative coordinator has won the Zurich Municipal sponsored, Award for Innovation, at this year’s Public Servants of the Year Awards.
Christine also went on to win the most prestigious award for Outstanding Public Servant of the Year. This recognised her pioneering approach, commitment and
determination in successfully leading an initiative to encourage and persuade 67 large employers to pay tax and National Insurance on time, bringing forward a
staggering £1 billion of late payments. Christine’s efforts resulted in millions of extra pounds becoming available for the delivery of public services.
Christine proved to have a dynamic and resourceful approach to setting up new systems to encourage electronic and prompt tax payment. She was also commended for the great strides made in changing the late payment culture amongst directors of large
employers – people who would normally be too senior for recovery officers to contact.
About 80% of large employers defined for this exercise are those who pay £1m or more a year in tax deductions and pay on or before the due date. However, the large
sums involved mean that even slight delays in payment on the part of the remaining 20% add up to huge amounts of lost interest.
From next April, all large employers will have to make PAYE payments for their employees electronically. There will be fines for those who pay late, although the Inland
Revenue will introduce a later monthly payment date to compensate employers for the loss of the cash flow advantages they currently enjoy if they pay by cheque.
Remarkably, these measures were included in this year’s Budget because of the efforts of Christine, a relatively junior member of the Revenue, who persuaded senior policy colleagues of the need for change.
“This had been mooted several times before but it foundered on lack of evidence and understanding of what would happen in practice. She was the spark that made it happen,” says Nick Down, the Revenue
Programme Director who was in overall charge of the project that gave Christine Golden a chance to shine.
Christine’s achievements and her innovative work that helped bring about legislative change have also received recognition in the form of promotion to an important new role in the Inland Revenue’s head office.
The awards were announced at a ceremony at the London Marriott Hotel organised by Public Finance magazine, in partnership with the Chartered Institute of Public Finance and Accountancy (CIPFA), the Cabinet Office and the Office of Government Commerce.
Guy Munnoch, Managing Director of Zurich Municipal, said, “This year's Public Servants of the Year Awards highlight the valuable contributions being made by individuals behind the scenes across our public services
and the significant impact their work has on all of our lives.
“Christine has broken new ground in combating the late payment culture, resulting in money becoming available which is critical to ensuring the delivery of high quality public services. She has shown exceptional ability,
strong commitment and genuine desire to make a difference.
“The high calibre of all the short-listed entries is commendable and we congratulate all who took part.”
Zurich Municipal are pleased to be sponsoring the 2004 ‘Outstanding Public Servant of the Year Award’.
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