Written question asked by Helen Clark (Labour) on Friday, 25 June 1999, in the House of Commons. It was due for an answer on Monday, 5 July 1999. It was answered by John Denham (Labour) on Monday, 5 July 1999 on behalf of the Department of Health.

Dept of Health

Question: To ask the Secretary of State for Health, what guidance has been given to NHS trusts on market testing their insurance requirements; and if he will make a statement.

Answer: Mrs. Brinton: To ask the Secretary of State for Health what guidance has been given to NHS trusts on market testing their insurance requirements; and if he will make a statement. [89081] Mr. Denham: Historically, National Health Service trusts have not been required to market test their insurance requirements. As with other goods and services, however, they have been expected to obtain best value for money. Since 1 April this year trusts have only been permitted to renew commercial insurance to cover motor vehicle risks. They are now able to cover other non-clinical risks--mainly buildings, property and liabilities--by membership of two new NHS risk pools established under Section 21 of the NHS and Community Care Act, 1990. Alternatively, they may choose to self-indemnify. These new arrangements are already significantly reducing the overall cost of insurance to the NHS, releasing additional money for patient care.

Secondary information