Proposed Employers Liability Insurance Bureau Controversial in England

A new Employers’ Liability Insurance Bureau is under consideration by Great Britain's Department for Work and Pensions. The bureau will trace employer liability policies and, if they cannot be traced, provide an insurance fund of last resort. The Employers' Liability Insurance Bill has had its second reading in the House of Commons.

Insurers are concerned the proposed bureau may have a negative effect, saying some employers may feel less obliged to make adequate health and safety provisions for their employees. A spokesperson for one insurance broker said, "We are concerned about the effect a dedicated Employers' Liability Insurance Bureau will have on the attitudes of some employers who may then decide not to take the health and safety of their employees seriously. However, setting up a tracing system could help thousands of employees receive the compensation they deserve."

The Association of British Insurers (ABI) also opposes the bureau fearing it could cause a "serious moral hazard." They also objection the grounds of fairness since the fund is to be financed by the insurance industry, meaning reputable firms would pay for the failings of others.

However, the ABI said it recognizes the usefulness of a system for tracing insurers, pointing out ABI introduced such a code 10 years ago. (workersxzcompxzkit)

The Trades Union Congress (TUC) welcomes the principle of a system to assist those whose original insurers cannot be found, such as asbestos victims.

Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers' Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: [email protected] or 860-553-6604.

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