Insurance questions
(1) For insurance questions relating to fellowships, first discussed at the 51st session of CCAQ(PER), see Section 7.3.
(2) At the 55th session of CCAQ(FB) (September 1981) the members considered a suggestion of the Panel of External Auditors, initially placed before the Committee at the 54th session, concerning self-insurance or a concerted approach to the insurance market by the organizations for certain types of coverage. The material submitted set out organizations' practices with regard to the insurance of project vehicles and equipment in transit, which had been singled out by the Panel. In these areas the members were reticent about the idea of self-insurance, bearing in mind the administrative machinery and the technical skills required, as well as the possible problem of delays in settlements. Several were, however, prepared to explore possibilities of a concerted approach to the market if savings would result. The Committee noted that IAPSU was working on possible common arrangements for cargo insurance and asked to be informed of its findings (ACC/1981/30, paras. 40-42). A first report was submitted by IAPSU at the 56th session (March 1982), at which time the Committee asked to be kept informed of developments (ACC/1982/6, paras. 42 and 43).
(3) A further progress report by IAPSU, dealing with possible lower rates for cargo insurance (which would also cover removals), negotiated on a system-wide basis, was noted at the 58th session (March 1983). IAPSU was asked to report back on companies offering favourable conditions (ACC/1983/11, para. 45).
(4) At the 60th session (March 1984) the Committee considered the IAPSU report. It was agreed that IAPSU should contact the organizations directly for observations, and that it should thereafter refer the matter to the Inter-Agency Procurement Working Group (ACC/1984/10, paras. 46 and 47).
(5) For the question of a possible common insurance policy covering compensation payments, also discussed at the 60th session, see Section 17.3.
(6) At the 63rd session (September 1985) UN drew attention to problems encountered with respect to its general liability insurance and Headquarters property insurance, suggesting an exchange of views and experience. The Committee agreed that these problems called for priority consideration at the next session, and possibly in ad hoc working groups in New York and Geneva in advance of the session, and requested that they be the subject of an information document to be circulated at an early date in 1986. A relevant study prepared by IAPSU would also be circulated if possible (ACC/1985/17, paras. 53 and 54).
(7) At the 64th session (March 1986) the Committee returned to the question of general liability and property insurance, referring to an inventory of coverage in the system, the IAPSU report, which concerned a possible common policy for European-based organizations, and the report of an ad hoc working group on insurance convened under UN auspices. The Committee found that the insurance market had very different characteristics according to the region considered, and that it would not be profitable in current circumstances to pursue the idea of world-wide commercial insurance arrangements. Regional policies might be envisaged for organizations in North America or Europe, and open-ended regional groups might be constituted, initially for exchanges of experience. Individual organizations might be well-advised to develop consistent policies as to the risks that they should cover and, for this purpose, to seek independent assessments of appropriate risk management (ACC/1986/4, paras. 62-65).
(8) At the 66th session (March-April 1987) the Committee took note of a report by IAPSU on commercial insurance, dealing with a number of types of coverage, notably from the point of view of possible collective arrangements. It was agreed that when IAPSU needed to obtain information on insurance matters from outside sources it should first contact CCAQ on potentially sensitive subjects in order that the most appropriate approach might be selected (ACC/1987/6, para. 46).
(9) Discussions in CCAQ(PER) and CCAQ(FB) on insurance coverage for staff at hazardous duty stations are dealt with in sections 11.2 and 16.6.
(10) Information collected by CCAQ(FB) on the cost of health insurance schemes for staff is dealt with in section 8.2.
(11) At its 81st session (August - September 1994), CCAQ(FB) examined information gathered on insurance and bonding arrangements in the context of its regular private exchange of information on matters of current interest in relation to the safety of organizations' cash assets (ACC/1994/15, para. 38).
(12) At its 7th session (March 2004: CEB/2004/3, paras. 18-19)) HLCM received a presentation by WFP on its proposals for how organizations should cover the liabilities of their own staff on WFP administered flights. Although several organizations supported in principle the need to provide cover for their own staff, questions were raised regarding the possibility of increasing or providing additional coverage, building such costs into the air service operations budget, liabilities for non UN system staff on flights and the introduction of an insurance tax. The Committee thanked WFP for its work on this issue and asked it to lead a small group to consider the options for resolving this matter, in particular: (a) WFP would pay for more coverage and raise its costs to organizations appropriately; (b) the UN would pay for all air passengers; or (c) flights would be limited to UN system staff only.