Overview

This bill establishes an Employers' Liability Insurance Bureau (ELIB) to compensate individuals injured at work by insolvent or uninsured employers. The ELIB will be funded by levies on employers' liability insurers and will maintain a database of insurance policies.

Description

The bill creates a company limited by guarantee, the ELIB, managed by a board appointed by the Secretary of State. The ELIB will administer a compensation scheme for individuals injured at work by employers who are insolvent and either lacked insurance or whose insurers are untraceable, or employers who were not insured as required by law.

Compensation Scheme

The scheme will pay "full common law compensation," meaning the amount that would have been awarded in court. The ELIB will levy insurers to cover compensation payments and administrative costs. The scheme can set different levy amounts for different types of claims and can specify criteria for making claims (e.g., types of claimants, claim limits).

ELIB Powers

The ELIB can demand information and documents from claimants and relevant parties (employers, insurers, liquidators, etc.) to assess claims. It can also access information held by liquidators, administrators, and trustees in bankruptcy (except the Official Receiver and similar roles). Crucially, the ELIB will create and maintain a database of employers’ liability insurance policies.

Rights Transfer

If an employer is insured and incurs liability covered by this act, the employer's rights against the insurer are transferred to the injured party.

Government Spending

The bill states that expenses of the Secretary of State under this Act will be paid out of money provided by Parliament. No specific figures are provided in the bill text.

Groups Affected

• Injured workers: Could receive compensation for workplace injuries caused by insolvent or uninsured employers.
• Employers: May face levies through their insurers to fund the compensation scheme.
• Insurers: Will be responsible for paying levies to the ELIB.
• Liquidators and administrators: May be required to provide information to the ELIB.

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