JUNE 3rd IS DAY OF RECKONING ON INSURANCE FOR THE GOVERNMENT - COTTER

4.15.28pm BST (GMT +0100) Thu 22nd May 2003

Responding to the announcement made by the Government today that its report into Employers' Liability Compulsory Insurance, will be published on 3 June, alongside the report by the Office of Fair Trading, Brian Cotter MP, the Liberal Democrat Spokesman on Small Business stated,

"With the insurance industry already predicting that ELCI premiums will rise by a further 50% this year alone, today's announcement is a welcome one, providing that the reports are not simply full of empty promises."

"Issues such as the effect of the 'No-Win, No-Fee' culture, along with the adversarial nature of our legal system and the weak link between actual risk and the cost of cover, all need to be addressed.

"Moreover the Government needs to explain why at a time when many businesses are already struggling to find affordable insurance, it is adding to their burden, by asking them to cover the cost of NHS treatment for those injured at work, which it is predicted will increase premiums by a minimum of 8%"

Brian Cotter concluded,

"The situation is critical. The Government must not let business down on June 3rd."

ENDS

Notes to Editors

Brian Cotter was responding to a written ministerial statement made by the Department of Work and Pensions today, following on from the statement it made on 12 December, announcing a review in Employers' Liability Compulsory Insurance.

The Health Lambert Group have reported that ELCI premiums will increase in excess of 50% during 2003.

The Department of Health have estimated that proposals laid out in the Health (and Community Health and Standards) Bill to recover the cost of NHS treatment for those who receive injuries at work will lead to an increase in premiums of around 8%.