§ Mr. BercowTo ask the Secretary of State for Health what the cost of buildings insurance to his Department was(a) before and (b) after 11 September 2001. [66925]
§ Mr. LammyDepartments are required to comply with the Government's general policy on insurance, which is set out in Government Accounting, Chapter 30. para.30.2.5, which notes that Government do not need to purchase insurance to protect the viability of their business, and should consider insurance only where the value of claims met would exceed the cost of insurance premiums. Commercial insurance of a building is acceptable in cases where(a) insurance is a condition of a lease (b) the lessor will not accept a Government indemnity; or (c) incurring the total cost of the accommodation in question, including the cost of the insurance, is more cost-effective than other accommodation options.
207WFinancial records show the following payments in respect of buildings occupied by the Department (excluding Agencies) against the heading of building insurance:
- 2000–01: £67,050
- 2001–02: £56,443.
Meaningful comparisons between one year and another are difficult to make, due to changes in the estate and consequent insurance obligations. The following four premises were occupied during all or part of 2000–01 and not during all of 2001–02:
Temple Way, Bristol (Bristol Royal Infirmary Inquiry)—finally cleared/vacated 1 August 2001;Norwich House, Liverpool (Alder Hey Inquiry)—vacated 15 December 2000;Trevelyan House, London SW1 (HDA)—vacated 15 March 2002.The timing of payments during the year, to meet policy renewal notices, mean it is not possible as yet to identify any effects of the events of 11 September on premium levels.