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Employers Liability Compulsory Insurance

Volume 405: debated on Thursday 22 May 2003

The text on this page has been created from Hansard archive content, it may contain typographical errors.

In a written statement on 12 December I announced the start of the review of Employers' Liability Compulsory Insurance and the terms of reference of the review:"The purpose of this review is to assess the case for reforming ELCI and, if such a case is demonstrated, to identify the objectives and options for such reform. Its terms of reference are to:

Survey the operation of Employer's Liability Compulsory Insurance (ELCI), taking into account any relevant aspects of the state benefits systems.
Assess the scale and nature of the current difficulties being experienced in relation to ELCI, in particular the extent to which these difficulties are likely to be short-term only, repeated in the future or permanent.
Make recommendations to Ministers as to the case or otherwise for reforming ELCI.
If a case for reform is found, make recommendations as to the objectives, principles and high-level options for such reform."

The statement said that the review would report to Ministers in Spring 2003.

An interim, first stage report, has now been received by Ministers. This sets out our preliminary findings in what has proved to be a complex area and also sets out a work plan for producing a further report. Hon Members may also be aware that the Office of Fair Trading (OFT) has been conducting a fact-finding study into the UK Liability Insurance market. That study has been looking at public, product, professional and employers' liability insurance, and examining why premiums have recently increased and the way in which this market is working.

Although the two reviews are separate they consider related issues. I have therefore agreed with OFT that it would be sensible to co-ordinate publication of the two reports. This will happen immediately following recess, on 3 June.