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Dept for Environment Food and Rural Affairs

Answer

Mr. Bercow: To ask the Secretary of State for Environment, Food and Rural Affairs what the cost of buildings insurance to her Department was (a) before and (b) after 11 September 2001. [66936] Mr. Morley: Departments are required to comply with the Government's general policy on insurance, which is set out in "Government Accounting", chapter 30, para 30.2.5, which notes that Government do not need to purchase insurance to protect the viability of its business, and should consider insurance only where the value of claims met would exceed the cost of insurance premiums. Commercial insurance of a building is acceptable in cases where (a) insurance is a condition of a lease (b) the lessor will not accept a Government indemnity (c) incurring the total cost of the accommodation in question, including the cost of the insurance, is more cost-effective than other accommodation options ("Government Accounting", para 30.2.11a). Commercial insurance is not usually payable in respect of leasehold properties where the Department is the sole occupier. In the case of leasehold property shared with other tenants, the cost of insurance is not always identified separately by our landlords. Furthermore, premiums are payable at different times of the year and our landlords may not have had to renew cover since 11 September 2001. It is not possible, therefore, to provide a precise assessment of the cost of commercial buildings insurance paid by the Department either before of after 11 September 2001. However, where insurance premiums have been separately charged this year, they have increased by between 3 per cent. and 90 per cent. It is impossible to say what proportion of these increases is due to the events of 11 September 2001.

Secondary information

Type

Written question

Reference

66936; 388 c949-50W;388 c951-2W

Session

2001-02

Subjects

Costs Buildings Department for Environment, Food and Rural Affairs Government departments Insurance Offices Terrorism

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk