SCHEDULE 9: INSURANCE REQUIREMENTS

Transcription

1 SCHEDULE 9: INSURANCE REQUIREMENTS Part 1: General Requirements 1 Public Liability and Products Liability 1.1 Cover Legal liability of the Insured Party (being the parties listed in paragraph 1.2 of this Part 1 of Schedule 9) to pay (including claimant s costs and expenses) as damages in respect of: death or bodily injury, illness, disease contracted by any person; loss of or damage to property; and interference to property or any easement, right of air, light, water, or way or the enjoyment or use thereof, by obstruction, trespass, loss of amenities nuisance or any like cause, happening during the Insurance Period and arising out of or in connection with the carrying out of the Services. 1.2 Insured Parties the Provider and the Provider Parties; staff employed by NHS and seconded to Provider pursuant to a secondment arrangement; for their respective rights and interests during the term of this Agreement. 1.3 Insurance Period From the Full Services Commencement Date and annually renewable thereafter on each anniversary until the Expiry Date (or termination date if earlier). 1

2 1.4 Indemnity Limit Ten million pounds sterling ( 10,000,000) any one occurrence/unlimited in the aggregate but limited in the annual aggregate during the Insurance Period for products liability and for pollution liability. 1.5 Deductible To be advised but not to exceed ten thousand pounds sterling ( 10,000) each and every occurrence of property damage only, Nil ( 0) in respect of bodily injury. 1.6 Principal Extensions cross liabilities; costs and expenses in addition to indemnity limit; indemnity to principals; contractual liability; worldwide jurisdiction; and health & safety at work defence costs Waiver of subrogation in favour of the PCT (if the PCT is not an insured party) and its employees, servants and agents Additional Extension Waiver of subrogation in favour of the PCT and its employees, servants and agents. 1.7 Principal Exclusions penalties, fines, liquidated and ascertained damages; 2

3 1.7.2 gradual pollution exclusion; war and civil war; nuclear events including radioactive contamination; Insured Party s own employees; aircraft and marine craft; and date recognition 1.8 Special Endorsements subrogation waiver against any Insured Party; non contribution by other policies clause; non vitiation (where there are co-insured); cross liabilities clause; twenty (20) Working Days notice clause (notice clause requiring the insurers to give at least twenty (20) Working Days prior written notice to the insured parties (and where the PCT is not an insured party, the PCT) if any insurer proposes to rescind, avoid, suspend or cancel the insurance, or any cover or claim under it, in whole or in part for any reason as against the Provider); and waiver of subrogation in favour of the PCT and its employees, servants and agents. 2 Medical Malpractice Cover 2.1 Cover 3

4 All claims, costs and liabilities from any claims for medical negligence arising out of the provision of the Services subject to all medical practitioners maintaining appropriate cover through their membership of the relevant professional organisations providing indemnity for their acts or omissions in the provision of the Services envisaged by this Agreement. 2.2 Insured Party The Provider. 2.3 Insurance Period From the Full Services Commencement Date and annually renewable thereafter on each anniversary until the Expiry Date (or termination date if earlier). 2.4 Sum Insured Ten million pounds sterling ( 10,000,000) for any one claim, with an aggregate of twenty five million pounds sterling ( 25,000,000). 2.5 Maximum Deductibles Twenty five thousand pounds sterling ( 25,000) for each and every claim. 2.6 Principal Extensions costs and expenses in addition to indemnity limit; and indemnity to principals. 2.7 Principal Exclusions war and civil war etc; nuclear events including radioactive contamination; Insured s own employees; and 4

5 2.7.4 date recognition. 2.8 Special Endorsement twenty (20) Working Days notice clause (notice clause requiring the insurers to give at least twenty (20) Working Days prior written notice to the insured parties (and where the PCT is not an insured party, the PCT) if any insurer proposes to rescind, avoid, suspend or cancel the insurance, or any cover or claim under it, in whole or in part for any reason as against the Provider) For the avoidance of doubt: (i) the Retro date shall not be later than the Full Services Commencement Date; and (ii) Cover is to be maintained by the Provider after the Expiry Date (or if earlier the termination date) to afford indemnity for claims made after the Expiry Date but relating to incidents prior to the Expiry Date (or, if earlier, the termination date). 3 Statutory Insurances 3.1 Motor The Provider may choose whether to take out such policy on its own behalf or shall ensure that any Provider Staff who need to use a vehicle in providing the Services have such policy. Cover third party liability; and limit of indemnity to be not less than statutory minimum. Sum Insured bodily injured unlimited; and 5

6 3.1.4 third party property damage - five million pounds sterling ( 5,000,000) any one (1) occurrence in respect of commercial vehicles and twenty million pounds sterling ( 20,000,000) for any one (1) occurrence in respect of private cars. Insurance Period From the Full Services Commencement Date and annually renewable thereafter on each anniversary until the Expiry Date (or termination date if earlier). Extensions cover to extend to include transport services for Patients as and when provided. 3.2 Employers Liability Insured Party Provider Cover Limit of indemnity to be not less than ten million pounds sterling ( 10,000,000) for any one (1) event and in a form complying with the Employers Liability (Compulsory Insurance) Act 1969 and subsequently enacted legislation. Insurance Period From the Full Services Commencement Date and annually renewable thereafter on each anniversary until the Expiry Date (or termination date if earlier). 4 Property "All Risks" 4.1 Cover 6

7 All Risks of loss or damage to property used for or in connection with the ownership, maintenance and operation of the GP Led Health Centre Practice Premises and provision of the Services. 4.2 Insured Parties Provider, the PCT and PCT Parties and the Landlord. 4.3 Sum Insured Reinstatement as new cost on buildings (where the solution allows), fixtures, fittings and contents. 4.4 Deductible To be advised but not to exceed ten thousand pounds sterling ( 10,000) each and every loss. 4.5 Insurance Period From the Full Services Commencement Date and annually renewable thereafter until the Expiry Date (or if earlier the termination date). 4.6 Principal Extensions day one reinstatement - +15%; subsidence and landslip; architects & surveyors fees; debris removal costs; public authorities; automatic reinstatement of Sum Insured; and 7

8 4.6.7 full terrorism buy back (UK Mainland Risks). 4.7 Principal Exclusions war and civil war; nuclear events including radioactive contamination; the cost of making good wear and tear etc. but not excluding consequential losses; sonic bangs; consequential losses; date recognition; deliberate acts or omissions of the Insured Party; unexplained shortages; fidelity losses; and loss or damage to motor vehicles, aircraft or marine craft. 4.8 Special Endorsements subrogation waiver against any Insured Party and the PCT (where it is not an Insured Party); non-duty of disclosure by the PCT; non-contribution by other policies clause; non-vitiation; and 8

9 4.8.5 thirty (30) Working Days notice clause (notice clause requiring the insurers to give at least thirty (30) Working Days prior written notice to the insured parties (and where the PCT is not an insured party, the PCT) if any insurer proposes to rescind, avoid, suspend or cancel the insurance, or any cover or claim under it, in whole or in part for any reason as against the Provider 9

10 Part 2: Broker s Letter of Undertaking To: [PCT ] cc: [PCT s insurance adviser] Dear Sirs The Contract for Primary Medical Care Services dated [ ] entered into between [ Provider) and PCT (the PCT) in respect of [ ] (the Services) (the Agreement) ] (the We have been requested by the Provider to provide you with certain confirmations relating to the insurances arranged by us in relation to the Agreement, and in consideration thereof we provide you with the confirmations set out below. The insurances listed in Schedule 9 of the Agreement (the Insurances) are, at the date hereof, in full force and effect in respect of the risks and liabilities as set out in the insurance policies evidenced in the policies/cover notes attached as Appendix [ (the Policies). We further confirm that all premiums due to date in respect of the Insurances are paid and that the Insurances are, to the best of our knowledge and belief, placed with insurers, which as at the time of placement, are reputable and financially sound. We do not, however, make any representations regarding such insurers current or future solvency or ability to pay claims. We have arranged the Insurances on the basis of information and instructions given by the Provider. We have not made any particular or special enquiries regarding the Insurances beyond those that we normally make in the ordinary course of arranging the insurances on behalf of our insurance broking clients. The confirmations set out in this letter are given by reference to our state of knowledge at the date hereof. Pursuant to instructions received from the Provider in connection with the Insurances we hereby undertake: (a) to notify you: 10

11 (i) as soon as reasonably practicable and in any event no less than twenty (20) Business Days prior to the expiry of the Insurances if we have not received instructions from the Provider and/or any Insured Parties or the agents of any such party to negotiate renewal, and, in the event of our receiving instructions to renew, to advise you as soon as reasonably practicable after receipt of the details thereof; (ii) forthwith after giving or receiving notice of termination of our appointment as brokers in relation to the Insurances; (b) subject to our lien (if any) on the Policies for premiums due under the Policies, to pay to [ ], without any set-off or deduction of any kind, for any reason, all payments received by us from the insurers in relation to the Insurances (including refunds of premium) other than as may be permitted in the relevant loss payable clauses in the endorsements; (c) to advise you as soon as reasonably practicable after receiving notice of any insurer s cancellation or suspension of any of the Insurances or receiving notice of any insurer s intention to cancel or suspend any of the Insurances; (d) in accordance with our duties to our clients, to make the Provider aware of its precontractual duties of disclosure to the insurers by advising the Provider of the type of information which generally needs to be disclosed to the insurers; (e) subject to the Provider s consent, to hold the insurance slips or contracts, the Policies and any renewals thereof or any new or substitute policies to the extent held by us, to the order of the PCT; and (f) to treat as confidential all information in relation to the Insurances marked as confidential and supplied to us by the Provider or the PCT and not to disclose such information without the written consent of the supplier, to any third party other than those persons who, in our reasonable opinion, have a need to have access to such information from time to time. Our obligations of confidentiality shall not conflict with our duties owed to the Provider and shall not apply to disclosure required by an order of a court of competent jurisdiction, or pursuant to any applicable law or regulation having the force of law or to information which is in the public domain. The above undertakings are subject to our continuing appointment as insurance brokers to the Provider in relation to the Insurances and following termination of such appointment we shall 11

12 immediately notify the PCT of such termination, such notification effecting our immediate release from all our obligations set out in this letter. Nothing in this letter shall prejudice the right that any insurers may have to cancel any of the Insurances following default in excess of 30 days in payment of premiums nor shall the exercise of such right in such circumstances amount to a breach of any obligations accepted by us pursuant to the terms of this letter. In accordance with sub-paragraph (c) above we will give you notice as soon as reasonably practicable after receiving notice of any insurers intention to cancel any of the Insurances and where insurers wish to cancel for reasons of non-payment of premium, we will request that insurers give you a reasonable opportunity to pay amounts outstanding before issuing notice of cancellation on behalf of such insurers. For the avoidance of doubt all undertakings and other confirmations given in this letter relate solely to the Insurances. They do not apply to any other insurances and nothing in this letter should be taken as providing any undertakings or confirmations in relation to any insurance that ought to have been placed or may at some future date be placed by other brokers. We shall supply further letters in this form on renewal of each of the Policies and at other times as requested by the PCT and shall supply copies of such letters to those parties identified to us by the PCT for such purposes. This letter is given to us on the instructions of the Provider and with the Provider s full knowledge and consent as to its terms as evidenced by the Provider s signature below. This letter shall be governed by and shall be construed in accordance with the laws of England and any dispute as to its terms shall be submitted to the non exclusive jurisdiction of the courts of England. Yours faithfully For and on behalf of [brokers].... For and on behalf of the Provider 12

13 Attachments: Appendix [ ] - Policies/Cover Notes 13

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