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 or lacked the required insurance. The scheme will provide "full common law compensation," meaning compensation equivalent to what a court would award. The ELIB will have the power to levy insurers to fund the compensation scheme. The scheme allows for different funds for various types of claims, different levy amounts, and limits on individual levy amounts. It also dictates procedures for claim submission and potential interim payments. The ELIB will create and maintain an electronic database of employers' liability insurance policies and can require information and documents from relevant parties involved in claims, including the power to inspect documents held by liquidators. The bill also transfers an employer's rights against their insurer to the injured person in cases of insolvency.

Government Spending

The bill specifies that any expenses incurred by the Secretary of State in establishing and running the ELIB will be met from public funds. No specific figures are provided in the bill itself.

Groups Affected

• Injured workers: Potentially benefit from compensation in cases where their employer is insolvent or uninsured.
• Employers: Indirectly affected through insurance levy costs.
• Employers' liability insurers: Will be required to pay levies to fund the compensation scheme. Their liability may be increased.
• Liquidators and administrators: Will be required to cooperate with the ELIB by providing information.

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