Overview

This bill proposes the creation of an Employers' Liability Insurance Bureau (ELIB) to compensate individuals injured at work by insolvent employers lacking adequate insurance. The ELIB will be funded through levies on employers' liability insurers and will maintain an electronic database of insurance policies.

Description

The bill establishes the ELIB as a company limited by guarantee, overseen by a board appointed by the Secretary of State. The ELIB will manage a compensation scheme for individuals injured at work due to an insolvent employer's lack of insurance or non-compliance with the Employer's Liability (Compulsory Insurance) Act 1969. The scheme will provide "full common law compensation" meaning the level of compensation that would have been awarded in court.

The ELIB will be funded by levies on employers' liability insurers, the amounts reflecting the risk profile of each insurer. The ELIB will also have powers to collect information from relevant parties, including insurers and liquidators, to assess and process claims. The ELIB will create and maintain a database of employers' liability insurance policies to aid in claim processing. The bill also allows for the possibility of different funds for different types of claims, varying levies based on circumstances, and the setting of maximum compensation amounts.

Government Spending

The bill states that expenses incurred by the Secretary of State in establishing and operating the ELIB will be paid from public funds. No specific figures are provided in the bill itself.

Groups Affected

• Injured workers: Potentially benefits from compensation if injured by an uninsured or insolvent employer.
• Employers' liability insurers: Will be responsible for paying levies to fund the compensation scheme.
• Insolvent employers: Their liabilities will be covered by the compensation scheme, but they may face investigation and information requests from the ELIB.
• Liquidators and administrators: Required to cooperate with ELIB investigations and allow access to relevant documents.

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