§ Mr. GrayTo ask the Secretary of State for Defence how many contracts his Department has with consultants; what level of professional indemnity insurance is standard in contracts with small consultants; whether he can make exceptions to the level of professional indemnity insurance; and what recent discussions he has had with other Government departments about the level of professional indemnity insurance. [50824]
§ Dr. Moonie[holding answer 18 April 2002]: This information is not held centrally and can only be provided at disproportionate cost.
The Ministry of Defence does not routinely impose a requirement for a standard level of professional indemnity insurance in contracts with small consultants. Most consultants will take out professional indemnity insurance with a policy value consistent with the risks associated with their business. Unless there are compelling business reasons to the contrary, MOD would not wish to interfere in this decision.
308WAs MOD does not routinely impose a requirement for a standard level of professional indemnity insurance, then the question of exceptions to a standard level does not usually arise. However, MOD would not wish to allow any variations in the levels of professional indemnity insurance which could distort competition or could in any other way be seen as discriminatory. Inevitably, some contracts do carry special risks and, in these cases, it may be beneficial on value for money grounds for the MOD to exclude or limit the contractor's liability. Finally, as with previous Administrations, it is not this Government's practice to provide details of discussions that form part of the process of policy development and analysis.