Proposed reduction in rail accident insurance requirements

ORR consultation (24 pages, PDF) on a proposal to reduce third liability insurance (or self-insurance) requirements for licensed railway operators. ORR proposes to reduce the standard minimum level of cover from £155 million to £100 million. Reasons for the proposal include that liabilities under track access agreements is now subject to annual caps of less than £100 million, and that no past accident has given rise to personal injury claims of more than £70 million.

The main claimed benefit is a reduction in premiums for smaller operators. ORR estimates this at "up to" £50,000 a year for "smaller new entrants". ORR intends to implement the changes with effect from the March 2007 insurance renewals round (i.e. before Grand Central, the only recent smaller new entrant passenger operator, starts its service).

Responses by Monday 22 January 2007.

For further information or advice please contact Franck Latrémolière.

Filed under ORR, Public transport.

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