Council paid out £77k to drivers
REDCAR and Cleveland Council paid out more than £77,000 through its insurers in the last 12 months to motorists successfully seeking compensation for accidents on the borough’s roads.
In all 117 claims were received in 2021/22, a near 54% increase on the 76 logged with the local authority in the previous financial year, 2020/21.
A report for members of the council’s governance committee said the financial impact in this category was £77,873, although this was a reduction from the £112,684 paid 12 months earlier.
It said motor-related claims against the council varied each year with factors including winter weather conditions, the impact of Covid-19, which in turn affected the number of vehicles on the road, and improved reporting procedures. Like any local authority, Redcar and Cleveland Council has insurance cover in place in respect of motoring, public liability and employer liability claims. This also insures its vehicles, employees and covers injury and damage caused involving members of the public where the council is liable.
The report said through providing a wide range of functions for the public and delivering a huge variety of services, it was exposed to many types of risk.
It said: “If claims are made against the council, these are passed through to our insurers to investigate and decide on liability and they will then determine if the council is at fault for any potential damage or loss.
“The council must be proven to be negligent to pay out on claims and these are all investigated thoroughly, as we are using public funds and must ensure that we settle only those claims where there is legitimate liability.”
The council recently changed its insurance provider with a new tender being awarded from April 1 this year with the report revealing there had been a 35% reduction in the annual premium paid (£187,659).
The report said: “This is a significant reduction to achieve, particularly
The council must be proved to be negligent to pay out on claims and these are investigated
thoroughly.
as nationally we have seen premiums increasing due to what is known as a hardening market because of Covid, uncertainty and claims being paid out.
“This result demonstrates the value of the work the council has done in effective risk management and claims management.”
Ninety-one claims were received in the public liability category in 2021/22 and nine as far as employer’s
liability was concerned. Of these seven resulted in settlement claims – ie money being paid to the claimant – 30 were successfully defended without payment and the remaining 63 were still open claims.
Employers liability claims had the largest cost with £243,440 being paid out in 2021/22 and £90,684 in respect of public liability, the costs being met from the council’s internal insurance fund.