& - Wednesdays, October 1, 1986 - North Shore News

DEALING WITH RISING PREMIUMS
Municipalities to pool insurance?

THE NORTH Shore’s three
municipalities would wel-
come the pooling of liability
insurance with other B.C.
municipalities if the plan
will help reverse steadily ris-
ing insurance premiums.

Bs TIMOTHY RENSIEAW

News Reporter

West Vancouver Mayor Derrick
Humphreys said the current liabili-
ty insurance situation is ‘‘horren-
dous. | really think we have to
look at sharing the load. Unity is
strength."'

At the recent Union of B.C.
Municipalities’ (UBCM) annual
convention held in Vernon, dele-
gates voted to poll the union’s 144
municipalities and 28 regional
districts on their willingness to
pool liability insurance costs, to
seek the necessary funds for fur-
ther investigation and to come up
with a description of how pool-
insurance would work.

UBCM executive director
Richard Taylor said Wednesday
the cost to each municipality and
regional district to study the
viability and cast of such a pool
in their own area would be about
one per cent of their current an-
nual insurance premiums.

West Van Mayor Derrick Hum-
ohreys...‘*We have to took al shar-
ing the load. Unity is strength.”

For example, North Vancouver
District Mayor Marilyn Baker said
the study would cost the district
around $2,000.

Insurance premiums in the
district, jumped from $38,000 in
1985 to $122,000 this year.

According to district municipal
administrator Mel Palmer, in-
surance premiums for the district
from July 1, 1986 to June 30, 1987
will double again to $239,000 for
$5 million worth of coverage.

Deductible, he said, will more
than double, going from $10,000
to $25,000.

The fundamental question being
asked by the UBCM and_ its
various members, Baker said, ‘‘is
should reinsurers be placing the
actions of the world and world
disasters on the shoulders of
municipalities?”’

She added that pooling liability
insurance ‘‘is definitely viable."’

In the face of such catastrophies
as the Bhopal, India gas leak and
its $100 billion worth of law suits
and massive insurance court
awards in the United States that
are now averaging $1.07 million,
reinsurers Have largely abandoned
the liability insurance market.

Taylor said viability of the pool-
ing insurance has already been
determined. Under the scheme,
Taylor said basic rules for each
municipality would be the same.
And though individual costs had
yet to be worked out, poo! in-
surance for B.C. municipalities
would, he said, cut the average
municipal cost of liability in-
surance in half.

Taylor added that, in order to be
practical, the pool plan would need
about 75 per cent participation
from UBCM members and each

would bave to be committed to the
pool for an creed period of time.

B.C. municipalities currently
pay approximately $6 million in [i-
ability premiums. On average,
Taylor said insurance rates for
B.C. municipalities increased be-
tween three and five times from
1985 to 1986.

y |

Elections.

British Columbia gage

As a result, eight municipalities,
including Vancouver, Victoria and
Delta, have opted to run the risk
of being self-insured, which means
they fund losses out of their own
resources by putting money aside
each year as an insurance fund in
the event of a liability claim.

In North Vancouver City, liabil-

ity insurance premiums from
April, 1986 to) April, L987 will be
$83,892 for $5 million worth of
coverage. Premiums for the nine
months prior to April were
$59,000.

Insurance costs in) West) Van-
couver ballooned from $207,000 to
$394,000 in 1985,

Electoral District... North Vancouver-Seymour —__

PUBLIC NOTICE és hereby piven tothe voters at the above electoral district that
inobedience to Her Majesty's Writ, Prequire the presence of voters for the purpose
of nominatng and electiniga person or persons asthe cise may be, ta represent
theniin the Lepashinve Assembly of this Pron ance

NOMINATED CANDIDATES WELL BE ANNOUNCED BY AEE AT.

[Sees 121 East 15th St.
North Vancouver, B.C.

DATE OP NGSINATI

|

PRS NOs Perr

THE MODE OF NOMINATION OF CANDIDATES

Ih AN

paren ar North Vancouver, B.C.

The candidates shal be nom ated an writing by

eS reestered corer in aneleccral disener having fewer than a eee registered

voles

SO regtered Corer aman electoted dist thiesine CeO or nore rewistered

Sarers

Vertied nommnanons shalbbe delivered to the Retuzning Otter bemveen the
postimcot this Prodhaimanon and bpm on the dies ot Nerumanon

POLL INSGRANTED

POLLING DAY WILD BE

October 22, 1986

ADVANCE POLL WILE BE
('"* October 15, 16, 17, 18
'M! 1:00 p.m. - 9:00 p.m.

September 30, ,.,86_

West Vancouver municipal clerk
Doug Allan said he did not know
yet what insurance rates would be
for the municipality for the coming
year “but we are budgeting for a
three (o five per cent increase."

Taylor said the UBCM's liability
insurance pooling poll would take
about five weeks to complete.

ryt . ;
é. EL LO Zonk Z,

BE TURNING OFFICER

—

Chief Electoral Office
Province of
British Columbia