Many companies do not realise that they are exempt …

 

The only statutory (“stat”) covers are in respect of Employer’s Liability (EL) and Motor Third Party (Motor TP) (with some rare additions, eg Aviation).

Employer’s Liability (Employer’s Liabilty Compulsory Insurance Act [ELCI] 1969:

EL Exemptions broadly fall into 3 categories (Section 3, ELCI)

(1) “All Local Authorities/Police/Fire & Rescue/Health Service authorities” e.g:

  • the Common Council of the City of London, the council of a London borough or a county, or district in England/Wales
  • a council constituted under s2 LGA 1985, in Scotland, joint authorities as per Part IV LGA 1985
  • health service bodies, as defined by s60(7) NHS & Community Care Act 1990,
  • fire and rescue authorities as defined by s4A Fire &Rescue Services Act 2004
  • the London Fire Commissioner, the Commissioner of Police of the Metropolis
  • local policing bodies and chief constablesas defined by s2 of Police Reform & Social Responsibility Act 2011,
  • the Scottish Police Authority / the Scottish Fire and Rescue Service

(2) “Other miscellaneous public bodies” e.g:

  • health service bodies, as defined by s60(7) of NHS & Community Care Act 1990
  • NHS Commissioning Boards / foundation trusts / CCGs defined by s14D NHS Act 2006
  • NHS Trustsdefined by s25 NHS Act 2006, s18 NHS (Wales) Act 2006/NHS (Scotland) Act
  • the Broads Authority / a National Park authority / the Commission for Equality and Human Rights
  • Strathclyde Passenger Transport Authority

(3) “Under SoS [Secretary of State] control”

  • “any (other) body corporate established by or under any enactment for the carrying on of any industry or part of an industry, or of any undertaking, under national ownership or control”. This would include, for example, certain port operations (statutory harbour authorities etc).

Motor Third Party (Road Traffic Act 1969 [RTA])

Motor Exemptions broadly fall into similar categories (S144, RTA)

(1) “All Local Authorities/Police/Fire & Rescue/Health Service authorities” e.g:

  • vehicles owned by:
  • council of a county or county district in England and Wales or Scotland, the Common Council of the City of London, the council of a London borough, Fire & Rescue authorities, London Fire &Emergency Planning Authority, London Fire Commissioner
  • a local policing body or a police authority at a time when it is being driven under the owner’s control, or to a vehicle at a time when it is being driven for police purposes by or under the direction of a constable, a member of a police and crime commissioner’s staff, by a member of the staff of the Mayor’s Office for Policing and Crime
  • ambulances owned by an NHS trust, vehicles made available by the SoS to any person, body or local authority in pursuance of the NHS Act 2006

(2) “Other miscellaneous public bodies” e.g:

  • vehicles on journeys for salvage purposes pursuant to Part IX of the Merchant Shipping Act 1995
  • vehicles owned by the Care Quality Commission, at a time when the vehicle is being driven under the owner’s control

If you fall into one of the above categories (and many of our clients do, sometimes without realising it!):

  • You do not need to buy the relevant insurance cover at all (EL or Motor)
  • If you do buy insurance, you won’t be covered by any compensation scheme (eg the FSCS)
  • If you really do want insurance, “off-the-shelf” (ELCI/RTA compliant) policies are not appropriate for you
  • Insurance is designed to protect individuals and private companies (and their employees etc) as they may not have enough to compensate claimants or they may go bankrupt first.
  • It is not designed for the public sector, as they are partially (or totally) funded (or controlled) by central government, and hence “exempt”!

“Ask John to perform his version of search and destroy on your premiums”

“Ask John to perform his version of search and destroy on your premiums”