HomeMy WebLinkAboutTR-57-91 THE CORPORATION OF THE TOWN OF NEWCASTLE
REPORT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File#
Date: July 8, 1991 Res. #
By-Law#
Report#:__TR_-5J-_9_1_ File #:
Subject: 1991/92 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-57-91 be received;
2 . That Frank Cowan Company Limited continue to be retained as the Town
of Newcastle's insurance carriers for the period from July 1st, 1991
to June 31, 1992, with a total premium renewal rate of $217,620.00
(an decrease of 5 .25% over 1990/91 premium of $229,670 .00) ;
3. That the updated Fleet and Property schedules be forwarded to the
Frank Cowan Company as they are received from Department Heads;
4. That the Councillors, Accident Policy and the Crime Insurance Policy
be increased at an additional premium of $592 and $1,242
respectively, as recommended by Frank Cowan Company Limited and
outlined on page 6 of the 1991 General Insurance Report.
(Distributed to Department Heads and Council members under separate
cover) ; and
5. That the 1991 Budget overprovision for insurance amounting to
$12, 111. 00 be transferred to the Self-Insured Losses Reserve.
6 . That a transfer to the Self-Insured Losses Reserve in the amount of
approximately $11,000 be approved in order to maintain a level of
approximately $50,000 (funds to be provided from Contingency Account
#7007-X-298) .
BACKGROUND & COMMENTS
The overall decrease in the insurance premium for the 1991/92 premium year
is due to the good experience record under the Automobile Fleet Insurance
(for every dollar of insurance premium paid by the Town, Frank Cowan paid
out 23. 7 cents) . Also the decrease in the insurance premium is due to the
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TR-57-91 Page 2
out 23 .7 cents) . Also the decrease in the insurance premium is due to the
introduction of the Ontario Motorist Protection Plan, (No Fault Automobile
Insurance) that was effective June 22, 1990 . 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 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 1991 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 1991 Budget provision for insurance being an
estimate of $233,607 .00, and the premium year straddling two fiscal years,
results in an overprovision of $12, 111. 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, 1991 is approximately
$26,595 .50 .
It is advisable to keep the historical balance in this reserve and in order
to continue to fund claims that fall within the liability deductible level
of $5,000 or property damages of $10,000 it is recommended that the
contingency account fund this transfer. There is adequate funds available
in this account.
Respectfully submitted, Recommended for presentation
to the Committee
1:121
MA�rie Marano, H.BSc. ,A.M.C.T. Lawrenc Adm Kotseff
Treasurer Chief nistrative Officer
MAM/JR/ges
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