HomeMy WebLinkAboutTR-45-88 TOWN OF NEWCASTLE
REPORT
� � . File # 119 , S�
Res. # - �
By-Law #
MEETING: GENERAL PURPOSE & ADMINISTRATION COMMITTEE
DATE: June 20, 1988
REPORT #: TR-45-88 FILE #:
SUBJECT:
1988/89 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-45-88 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, 1988 to June 30th, 1989, with a total premium renewal rate
of $186,761.00 (a decrease of 5.50 over 1987/88 premium of
$197,208.00.) ; and
3. That, further to the above, the Frank Cowan Company be
instructed to add to the Town's Policies, a separate policy for
Municipal Legal Expense, at a minimum deposit cost of $250.00
pending formal application and revised costs; and
4. That the updated Fleet and Property schedules be forwarded to
the Frank Cowan Company as they are received from Department
Heads; and
5. That there be no other changes to the individual policies or
deductibles, as outlined in the 1988 Risk Management Report by
the Frank Cowan Company, which has been distributed to
Department Heads and Council Members under separate cover; and
6. That the 1988 Budget overprovision for insurance amounting to
$31,406.00, be transferred to the Self-Insured Losses Reserve.
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TR-45 88 Page 2
BACKGROUND AND COMMENT:
The overall decrease in the insurance premium for the I988/89 premium
year is o reflection of the improvement in the liability/loss ratio
over the past year.
The Frank Cowan Company continues to service the ivaozaune needs of
the greater percentage of the municipalities in the province, and
since there has been no significant competition in the insurance
marketplace over the past premium year, they are considered to remain
a solid risk.
The Municipal Legal Expense Insurance will provide for the
reimbursement of legal fees and expenses incurred by any member of
council, employee, statutory officer, firefighter while performing
his duties as such, who are charged under the following Acts, but
only where the outcome is other than guilty.
Environmental Protection Act
Freedom of Information 6 Protection of Privacy Act
Occupational Health and Safety Act
/
Ontario Water Resources Act
The basic limit of coverage will be $25,000.00 subject to a 10#
participation by the Town with an annual aggregate for all claims
of $250'000.00. There is a minimum premium of $250.00 on the very
small risks and flowing from the attached questionnaire, premiums for
all risks will be rated upon their direct exposure.
The Municipal Legal Expense insurance is not to be confused with the
Conflict of Interest iuoorouoe which is presently provided for the
Members of Council.
u , (o)
TR-45-88 Page 3
Department Heads are currently reviewing and updating the Fleet and
Property schedules that were included in the 1988 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 1988 Budget provision for insurance being an
estimate of $218,167.00, and the premium year straddling two fiscal
years, results in an overprovision of $31,406.00. 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, 1988 is approximately $61,000.00.
Respectfully submitted, Recommended for presentation
to the Committee
7
.R. Blanchard, Lawrenc E Kotseff,
Treasurer. Chief dmi strative Officer.
L/JRB/pp