THE CORPORATION OF THE CITY OF PORT COQUITLAM

MEMO
B. Kirk, June 25, 1987
City Administrator.
FROM: Administration Committee

SUBJECT: U.B.C.M. Self Insurance Scheme

RECOMMENDATLON:

That the City join the Municipal Insurance Association of British Columbia on
April Ist, 1988.

BACKGROUND & COMMENTS

UBCM established a task force to study the possible implementation of a self
insurance scheme. The task force has recommended the establishment of the
Insurance Association and has specifically recommended coverage for all
municipalities. The proposed coverage is very similiar to that presently

carried by the City with the main exceptions being that cur present liability
coverage has a ceiling of $2 million, $5 million is proposed. Our deductible
would increase as well (in most instances) from $15,000 to $25,000. The errors
and ommissions coveage presently carried has a $1 million ceiling and is the same
as that proposed, including a $25,000 deductible.

The report states that the committment to sign up must be received by July 15th
and a proposed start up date of September ist. Our recommended start up date is
April 1, 1988 as our present liability policy expires at that time. UBCM has
extended the end of the initial enrollment period to August 1988 (from January)
as they have had many inquiries from municipalities such as us who have been
advised by the insurance companies that 0% of the premium is refundable upon

cancellation.

If the task force has accurately estimated the costs of expected claims and other
costs then the City can look forward to savings from eur present costs:

$93,955
$63,718

Present (1987) costs

Task force estimated costs

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