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Departmental Insurance

Volume 126: debated on Monday 1 February 1988

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To ask the Secretary of State for Defence if he will give full details of the insurance cover effected by his Department for property and persons, including the risks covered.

It is the general rule that the Government do not insure against the risk of any loss which, if it arose, would fall directly or indirectly on the Consolidated Fund. However, it was decided in 1982 that there would be distinct financial and administrative advantages in transferring to commercial insurers my Department's work on third party motor accident and employers liability claims in the United Kingdom. These risks remain with the commercial market, together with those in respect of the participation of Ministry of Defence aircraft and parachute teams in civil organised air shows, the Department's legal liabilities to certain fare-paying air passengers, and the Department's liabilities arising from the civilian use of Ministry air fields. In consultation with our brokers and insurance consultants, we continue to review those other areas of the Department's activities and risks which might lend themselves to commercial insurance, provided that a clear benefit to the Department would result.