HomeMy WebLinkAboutTR-54-89 TOWN OF NEWCASTLE
REPORT
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Res. #
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MEETING: GENERAL PURPOSE & ADMINISTRATION COMMITTEE
DATE: June 19, 1989
REPORT #: TR-54-89 FILE #:
SUBJECT:
1989/90 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-54-89 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, 1989 to June
30th, 1990, with a total premium renewal rate of $204,089.00 (a decrease
of 0.018% over 1988/89 premium of $204,126.00) ; 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 1989 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 1989 Budget overprovision for insurance amounting to $ 858.00,
be transferred to the Self-Insured Losses Reserve.
BACKGROUND & COMMENTS:
The overall decrease in the insurance premium for the 1989/90 premium year is a
reflection of the improvement in the liability/loss ratio over the past year.
However, the 1988 reported annual premium of $186,761.00 was increased by
$17,365.00 brought about by the additions of the Municipal Office and the
Bowmanville Arena to the Property Policy during the 1988/89 premium years.
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TR-54-89 Page 2
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
significant competition in the insurance marketplace over the past premium year,
they are considered to remain a solid risk.
For the benefit of those Councillors who may be unfamiliar, 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/her duties as such, who are charged under the following
Acts, but only where the outcome is other that guilty.
Environmental Protection Act
Freedom of Information & 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 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 insurance which is presently provided for the Members of Council.
Department Heads are currently reviewing and updating the Fleet and Property
schedules that were included in the 1989 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.
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TR-54-89 Page 3
The combination of the 1989 Budget provision for insurance being an estimate
of $205,206.00, and the premium year straddling two fiscal years, results in
an overprovision of $ 858.00. 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, 1989 is approximately $82,069.00.
Respectfully submitted, Recommended for presentation
to the Committee
rie Marano, H.B.Sc. Lawrence E. Kotseff
Treasurer Chief Administrative Officer
MAM/JR/ges
708
KNO"/lE
TOWN OF NEWCASTLE
MEMORANDUM
TO; Marie Knight, Deputy Clerk
FROM: John Rzeszut, Deputy Treasurer
DATE: June 16, 1989
SUUECT: General Purpose and Administrative Meeting - June 19, 1989
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Please be advised that Mr. David W. Reed, Senior Account Representative
from Frank Cowan Company Limited will be attending the GPA meeting of
June 19, 1989.
Mr. Reed will be attending the meeting in a resource/advisory capacity
in the event there are questions pertaining to the 1989/90 Insurance
Risk Management Report.
Moreover, Mr. Reed requested an introduction to the General Purpose
Committee stating his advisory function at the meeting.
p
cc: Marie Marano, Treasurer