Decision details
Authority to award shared services Motor Insurance contract for LBHF, RBKC and WCC following capitalesourcing and OJEU compliant tender process
Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
Purpose:
The report analyses the tender responses to
the procurement of Motor Insurance against four options with
consideration of insurance premium costs and likely levels of self
financing required for claims where deductibles (excesses) are the
options under consideration.
This procurement brings all three Boroughs under the same insurance
provider and enables the Issue of Motor Insurance certificates in
the name of all three Boroughs jointly delivering cover that is any
driver, any vehicle from any of the Tri-Boroughs both facilitating
greater service integration whilst ensuring blanket cover and
eliminating the possibility of oversight in compliance with
insurance requirements.
Premium calculations and internal re-charges will continue to be
based on the vehicle ownership and individual claims performance to
avoid cross subsidy of other boroughs costs.
Decision:
1.1. That approval be given to the award of motor insurance and claims handling to Zurich Municipal in accordance option 1 in the report (£250,000 self-retained deductible) on a three year long term agreement at an annual premium of £6,532.50 plus Insurance Premium Tax of £391.95 and claims handling services at £3,300 plus recoverable VAT at 20% (total contract award over 3 years £29,497.50 plus Insurance Premium Tax of £1,175.85).
1.2. To noted that RBKC will the award of motor insurance and claims handling to Zurich Municipal in accordance option 1 in the report (£250,000 self-retained deductible) on a three year long term agreement at an annual premium of £6,535.50 plus Insurance Premium Tax of £392.13 and claims handling services at £4,400 plus recoverable VAT at 20%. Total contract award over 3 years £32,806.50 plus Insurance Premium Tax of £1176.39.
1.3. To noted that WCC will award of motor insurance and claims handling to Zurich Municipal in accordance option 1 in the report (£250,000 self-retained deductible) on a three year long term agreement at an annual premium of £13,425.75 plus Insurance Premium Tax of £805.55 and claims handling services at £9,180 plus recoverable VAT at 20%. Total contract award over 3 years £67,817.25 plus Insurance Premium Tax of £2,416.65.
Report author: Ray Chitty
Publication date: 31/03/2015
Date of decision: 30/03/2015
Decided at meeting: 30/03/2015 - Cabinet
Effective from: 08/04/2015
Accompanying Documents:
PDF 217 KB