HomeMy WebLinkAboutTR-49-90
TOWN OF NEWCASTLE
REPORT
File #lo','J~3> <cS
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DATE:
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SUR.ECT :
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
July 9, 1990
TR-49-90
FILE #:
1990/91 INSURANCE' RISK MANAGEMENT REPORT
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. That report TR-49-90 be received; and
2. That Frank Cowan Company Limited continue to be retained as the
Town of Newcastle's insurance carriers for the period from July
1st, 1990 to June 31, 1991, with a total premium renewal rate of
$218,434.00 (an increase of 4.51% over 1989/90 premium of
$208,999.00); and
3. That the updated Fleet and Property schedules be forwarded to
the Frank Cowan Company as they are received from Department
Heads; and
4. That there be no other changes to the individual policies or
deductibles, as outlined in the 1990 Risk Management Report by
the Frank Cowan Company, which has been distributed to
Department Heads and Council Members under separate cover; and
5. That the 1990 Budget overprovision for insurance amounting to
$10,456.00 be transferred to the Self-Insured Losses R~serve.
BACKGROUND & COMMENTS
The overall increase in the insurance premium for the 1990/91 premium
year is due to an adjustment of the values of the Town's physical
assets to reflect inflationary trends. The Frank Cowan Company
continues to service the insurance needs of the greater percentage of
the municipalities in the province, and since there has been no
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TR-49-90 Paqe 2
significant competition in the insurance market place over the past
premium year, they are considered to remain a solid risk.
Department Heads are currently reviewing and updating the Fleet and
Property schedules that were included in the 1990 Risk Management
Report, and as they become available they will be reviewed and any
changes will be passed along to the Frank Cowan Company so they may
update their records accordingly.
There were no significant changes in either the policies or premiums
of the other classes of insurance and thus further indepth analysis is
not deemed to be warranted.
The combination of the 1990 Budget provision for insurance being an
estimate of $222,706.00, and the premium year straddling two fiscal
years, results in an overprovision of $10,456.00. As in prior years,
this amount is available for transfer to the Self-Insured Losses
Reserve, to be used to meet claims that fall within the current
deductible levels maintained. The balance in the Self-Insured Losses
Reserve at May 31, 1990 is approximately $64,539.58.
Respectfully submitted,
Recommended for presentation
to the Committee
H.B.Sc.
Officer
MAM/JR/ges
7