The manufacturing sector has proposed a radical overhaul of employers' liability insurance (ELI) in a wide ranging report.
The manufacturing sector has proposed a radical overhaul of employers' liability insurance (ELI) in a wide-ranging report.
Following its successful campaign for the review of ELI announced in the Chancellor's pre budget statement, the Engineering Employers Federation (EEF) has called for a new system of employee compensation.
To read the report click here
Under the proposals, the system matches premiums to individual company risk, while splitting occupational illness from accidents at work, and, which reduces reliance on litigation.
Gary Booton, health and safety head at the EEF said: "There is much evidence to show that the market for Employers Liability Insurance is simply not working effectively. #
"But the problem goes beyond the market - it is the system that requires fundamental change. We need a long term solution which provides fair compensation, gets the ill or injured back to work more quickly and which rewards companies for improving their management of risk."
In "The Future of Employers' Liability Insurance - The Customers' View", the EEF proposed several ways of helping companies struggling with huge premium increases. The main proposal was for a bulk-purchasing scheme, which enables companies to buy cover as a block.
In addition, the report called for the £300m received by the Treasury from the insurance premium tax (IPT) to be used to fund health and safety programmes, and, to provide a reinsurance fund to cover remote risk.
Booton added: "In the short term there is much that government could do with the Treasury's windfall gains on Insurance Premium Tax.
"Targeting the money back at businesses which can demonstrate health and safety improvements, and providing cover for those facing remoter risks."
