Frontline childcare plan under fire over Covid cover
:: Scheme branded ‘unworkable’
AN AT-HOME childcare plan for frontline workers has been branded “unworkable” after a major insurer warned it will not cover Covid-19 claims.
Childcare providers have been told Allianz will not pay up if there are any claims relating to the virus as a result of a Government scheme to provide care in the homes of essential workers.
Insurance broker Arachas said in a letter it was advised the Government was “not in a position to provide a State indemnity” for the scheme.
The scheme aims to benefit 5,000 families, at a cost of €4.7m a week. Providers have been invited to volunteer to take part and registration began yesterday. It will be rolled out from May 18 and parents would pay €90 a week per family.
Arachas told childcare providers it is a Government-led initiative in response to a national crisis. It said that, along with Allianz, it had consistently expressed its views “that there is an onus on the State to provide a State indemnity in respect of this exposure”.
It said Allianz confirmed there was a “material change in risk” in terms of the heightened exposure to Covid-19 claims if providers participated in the outreach scheme.
The insurance broker said Allianz would have no option but to apply a Covid-19 exclusion “in connection with this new activity”.
“It is our duty as your insurance adviser to highlight to you that under the current framework outlined by your insurer, Allianz, and by the Government departments, that you will not have insurance cover for any claim relating to Covid-19,” it said.
The Department of Children and Youth Affairs said in a statement that Allianz’s decision not to provide coverage for Covid-19-related claims was a commercial matter for it as an underwriter.
“The department understands that the insurability of Covid-19-related claims is an issue which has been raised in a number of sectors,” it said. “The department advises childcare providers to contact their insurance broker if they wish to apply to the department to deliver outreach childcare under the scheme.”
Chairperson of the Association of Childhood Professionals Ireland Marian Quinn said she welcomed the scheme but insurance was one of the biggest issues that had to be ironed out.
She said she had been contacted by members who were concerned about what their liability will be. Ms Quinn said there were concerns it would be difficult to get sufficient staff, who will be paid €15 an hour, to volunteer.
It comes as a new study has revealed how many essential workers “have substantial childcare responsibilities”, with no way of accessing childcare during lockdown.
The study from the Economic and Social Research Institute (ESRI) examined the family structure and childcare responsibilities of essential employees.
The closure of schools and crèches, it found, may present significant challenges for employees who are trying to balance work and family responsibilities
The study found 52pc of essential workers have children, with around twothirds with a child aged 14 or younger. It identified seven categories of workers considered to be essential employees based on Irish Labour Force Survey data.
These categories are health professionals, health associate professionals and other health employees as well as those in the armed forces and defence and public administration, retail sales workers and transport operatives
Of those almost 70pc are female. Many essential workers are concentrated in lowerpaid occupations, like retail and health employees who are not considered professionals.