HC Deb 15 May 1941 vol 371 cc1246-7
17. Mr. Higgs

asked the Home Secretary whether he is aware that the London Regional Commissioner has entered into an agreement with certain insurance companies whereby the latter will manage claims arising under workmen's compensation and public liability policies issued to contractors employed on this work for a fee of 27½per cent. of the premiums charged; and will he take steps to reduce this charge, which is excessive, bearing in mind that those insurance companies invited to participate in the scheme will carry no risk?

Mr. H. Morrison

I am aware of the agreement to which my hon. Friend refers, but I would point out that it is open to any insurers to participate in the business covered by the agreement. The proportion of the premium to be retained by the insurers was arrived at after actuarial advice based on Board of Trade returns had been taken and after discussion with representatives of insurers. I am advised that the proportion of 27½ per cent. of the premium which has been agreed is not excessive.

Mr. Higgs

Is the Minister aware that there are many companies in this country prepared to take on this work at a premium of 15 per cent.? Does he not consider, therefore, that to pay 27½ per cent. is a gross waste of public funds?

Mr. Morrison

If those companies will communicate with me, I will see that their claims are considered.

Mr. Higgs

I shall be pleased to give the Minister, immediately after Questions, the names of at least three companies.

Mr. Thorne

Are you sure they are all sound?

Mr. Higgs

Yes.