Whitby Free Press, 26 Feb 1986, p. 8

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PAGE 8. WEDNESDAY, I E-BRUARY 26, 198b6 WIIITBY FREE PREiSS Regional staff predict big hike inliaiiy insurance The region's 1986-87 liablity insurance premiums will increase by more than 100 per- cent despite a reduction in general liability caverage from $25 million ta $7 million and a bike in deductibles fram $1,000 to $10,000, a Durham finance comf- mittee report predicts. Because the region's carrent coverage does flot expire until June, finance commissioner Jack Gartiey said the projections are at best a "guestimate" based on carrent trends in municipal liability coverage and com- munications with the region's insurers. The report concludes, however, that there are "significant problems in regards ta insurance In general and liability in- sarance in particular wich may nat be quickly or easily resolved." The regian's coverage for enviraninental protection was reduced froni $25 million to $10, million last year and this year finance staff' predict it will nat be available at all. Even with this and other lasses and reductions in caverage hawever, the report suggests that the total cast of insurance premiums tis year will go up by approximately 25 percent. Last year, the total cost of insurance premiums ta the region increased 79.7 percent. In an effort ta combat what, the report cals a 4crisis" situation, the region bas increased contributions ta its self- insurance reserve fund ta affset part of the bast coverage and a property liabillty review commit- tee bas been establisbed ta, study potential problems that might exist on regionally owned lands and properties. A second liability review committee will be established in the near future ta study the problem and recam- mend ways in which the region's many activities such as roads, day care and homes for the aged can reduce their ex- posare to rlsk. The report further states that al insurance policies will be subjec- ted ta rigarous cost/benefit analysis with a view ta keeping premiums as low as possible and other liability provisions such as third party agreements are being studied. The staff report notes that the Ministry of Consumer and Com- mercial Relations bas established a task farce ta report on possible solutions ta the problem but expresses a concern that tbe terms of the study may be too braad and may flot even ad- dress concerns specific ta special interest groupa such as municipalities. A second advisory cammittee, establisbed by the Ministry of Municipal Affairs and consisting of three elec- ted representatives from the Association of Municipalities of On- tario wil address, ac- cording ta the report, ways in which municipalities can resolve the problem in- cluding options such as pooling of liability risk by municipal gaver- nments. While acknowledging that the insurance crisis presents seriaus problems for municipalities, tbe report concludes that Durham may in fact be better off than most. Firstly, because Durham's policies lap- ses mld-year, as op- posed ta the Jan. 1 renewal date for most other municipalities, there is less insurance available at 'a higher price at the start of the year and tbe region en- jays cheaper coverage for the first six months of tbe year. Also the report states that the region b as bad a "relatively aggressive" seif-insurance programn for the last ten years and bas now ac- cumulated over $750,000 whicb as been set aside for future dlaims and enjoys a number of con- tractual provisions wbicb protect it against dlaims by praviders of goods and services. Winninag subseriber Anne Robertson was the Whitby Free Press subscriber of the montb for February and circulation manager Ibor Szep recently presented the Calais Street resident with a free toaster aven. No wonder Anne bas such a winning smile. Free Press Staff Photo ln];tllk4m, ALL OCCASION PARTY SUPPLIES* BALLOON BOUQUETS M WST 3 CA S WEDDING 10 0/o OFF INVITATIONS 10-20 %OFF WEDDING ACCESSORIES & DECORATIONS 76 BALDWIN ST., BROOKLIN 655-8828 Ail Fail and Winter Designer Fashions Eand make our S AVEmove easier In March we wiII BE MOVING Just next door to 126 Byron St. N. " Orig inal Art * Hand Painted SiIk * Pottery by Joseph Panacci *Handcrafted Jewellery Mon-Thurs. 10-6, Frn. 10-9, Sat. 10-6 128 BYRON ST, N WHITBfY 6662315

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