HC Deb 25 March 1985 vol 76 cc102-3W
Mr. McNamara

asked the Secretary of State for Defence what arrangements have been made to transfer his Department's claims records held by General Accident either back to his Department or to any new insurance company with effect from 1 April.

Mr. Lee

The question of transfer of records does not arise, as General Accident will remain responsible after the period of the present contract for business which arose within it.

Mr. McNamara

asked the Secretary of State for Defence what is the value of the insurance business conducted, and premiums paid, by his Department for each of the past three financial years; and what were the costs in the previous three financial years.

Mr. Lee

The sums concerned are a matter of commercial confidence between the Ministry of Defence and its insurers.

Mr. McNamara

asked the Secretary of State for Defence whether the option of performing his Department's insurance responsibilities in-house was costed and considered either before, after or when outside tenders were being assessed.

Mr. Lee

Yes, in-house costs were prepared independently and prior to receipt of commercial tenders, and were considered concurrently with them.

Mr. McNamara

asked the Secretary of State for Defence if he will make a statement on the arrangements his Department is making to transfer its insurance business from General Accident to Guardian Royal Exchange as from 1 April.

Mr. Lee

The intention to transfer this Department's claims work in the United Kingdom in the fields of motor accident and employers' liability to the commercial insurance market was announced on 5 March 1982, at column 245. The contract then placed was for the three-year period 1 April 1982 to 31 March 1985. Competitive tendering has recently been concluded for new contracts for three years from 1 April 1985 resulting in a change of insurance brokers and underwriters.