Overview

This bill establishes an Employers' Liability Insurance Bureau (ELIB) to compensate individuals injured at work when their employer is insolvent or uninsured. 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, run by a board appointed by the Secretary of State. The ELIB will manage a compensation scheme for individuals injured at work due to insolvent or uninsured employers. This scheme will pay "full common law compensation," meaning the amount a court would have awarded. Funding comes from levies on insurers, with the amounts reflecting the claims they are likely to generate. The ELIB can also impose levies on authorized persons to recover establishment costs. The scheme may include provisions for different funds, levies, and claim limits; interim payments; and recovery from other schemes or insurers.

ELIB Powers

The ELIB has the power to require information and documents from claimants, take copies, and request explanations. It can also inspect documents held by liquidators, administrators, or trustees of insolvent employers or insurers. A key function is creating and maintaining a database of employers' liability insurance policies.

Claimant Rights

If an employer is insured, the claimant inherits the employer's rights against the insurer.

Government Spending

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

Groups Affected

• Workers injured at work: Could benefit from compensation in cases where their employer is insolvent or uninsured.
• Employers: May face levies if they are insured under employers' liability insurance.
• Insurers: Will be liable for levies to fund the compensation scheme, with the amount based on their risk profile.
• Liquidators and administrators: Will be subject to information requests and inspections by the ELIB.

Powered by nyModel