HomeMy WebLinkAboutAPT 02/01
AJAX/PICKERING TRANSIT AUTHORITY
REPORT TO BOARD
FROM:
Gillis A. Paterson
Director, Corporate Services & Treasurer
DATE: September 12,2001
REPORT NUMBER: APT 02-01
SUBJECT: Liability Insurance
RECOMMENDATION:
That the Board:
1. confirm and approve the actions of the Treasurer in regards to the purchase of insurance as
outlined in this report;
2. authorize the General Manager and the Director, Corporate Services & Treasurer to purchase
any other insurance, make arrangements and settle and pay claims; and,
3. the appropriate officials be given authority to give effect thereto.
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ORIGIN:
Director, Corporate Services & Treasurer
AUTHORITY:
The Municipal Act, R.S.O. 1990, as amended, and Regulations
FINANCIAL IMPLICATIONS:
The annual premium for all coverages mentioned in this report is $12,219 plus applicable taxes.
Since these policies are being purchases at this time the cost will be shared equally by Ajax and
Pickering.
EXECUTIVE SUMMARY:
Not applicable
REPORT:
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While the City of Pickering and the Town of Ajax each provide their own insurance in regards to
liability and the property of their respective Transit operations and will continue to do so until the
end of the year, it was felt to be in the. best interest of all concerned if additional liability
insurance was purchased to provide protection to the Board and it's employees. While the
current insurance put in place by each of the respective municipalities should be sufficient in the
interim in regards to the assets and liabilities of their respective transit operations, given the
amalgamation, the formation of a new board, the "transition period" from September 4 to
January 1, 2001 and the hiring of administrative staff thereunder, it was felt to be in the best
Report to Ajax/Pickering Transit Authority
Date: September 12, 2001
Subject: Liability Insurance
Page 2
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interest of all concerned if additional insurance was purchased to provide protection to the
members of the board, management and staff of the new amalgamation Transit Authority. These
coverages will be in place until a new consolidated and comprehensive package of insurance
coverages can be put in place for the new authority, currently anticipated to be January 1, 2002.
The coverages purchased are as follows:
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Class of Insurance Summary of Coveral!es Limits/Amounts
General Liability Limit of Protection $10,000,000
Third Party Claims Deductible Nil
Errors and Omissions Limit of Protection $10,000,000
Deductible 2,500
Non-Owned Automobile Limit of Protection $10,000,000
Physical Damage Limit 250,000
Physical Damage Deductible 500
Comprehensive. Crime Commercial Blanket Bond $1,000,000
Monev - Blanket any Location 50,000
Counterfeit Paper Included
And Depositors' Forgery Included
Audit Expense (Sub-Limit $100,000) Included
2001 - 2002 Total Annual Premium $11,719
(plus taxes)
In addition, Legal Expense Insurance was purchased at an annual cost of $500, plus taxes as
Municipalities and other public entities are continually faced with increased exposure and
responsibility under various statutes enacted by senior levels of government. Among other
things, the Occupational Health and Safety Act provides for individual duties upon officers and
management of a Transit Authority to ensure that the statute is compiled with, and there are
significant penalties for failing to follow the statute.
Examples of the more common Statutes are:
. Environmental Protection Act
. Freedom of Information and Protection of Privacy Act
. Occupational Health and Safety At
. Ontario Water Resources Act
. Pesticides Act
. Municipal Elections Act
Legal Expense Insurance provide for the reimbursement of legal fees (defence costs) including
disbursements incurred by elected or appointed members, employees and volunteers in defence
of charges laid for an alleged offence under any Statute of the Province of Ontario (except for the
Highway Traffic Act and the Municipal Conflict of Interest Act).
Coverage is provided for 90% of legal fees and disbursements up to $100,000 subject to an
roIDUal aggregate for all claims of$250,000. The annual premium for this coverage will be $250.
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Optional coverage was also purchased to provide for reimbursement of defence costs even when
the outcome of the statutory charge is guilty. The additional premium for this coverage is $250.
Environmental liability was not purchased at this time as existing policies should be sufficient.
Also, Accident Insurance for Board Members was not purchased as they are covered under their
respective municipal policies.
Report to Ajax/Pickering Transit Authority
Date: September 12, 2001
Subject: Liability Insurance
Page 3
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ATTACHMENTS:
Not applicable
Prepared I Approved I Endorsed By:
~~q~~
Gillis A. P~terson
Director, Corporate Services & Treasurer
GAP:vw
Copy: T.1. Quinn, Chief Administrative Officer
R. Parisotto, Chief Administrative Officer, Town of Ajax
1. Galinis, General Manager, AjaxlPickering Transit Authority
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