It might be interesting to know what the cash in hand reserves are as this needs to be added to the 40% to reach the figure the committee are frightened of...........is there a history of claims? My question unanswered so far......
Nick
I've haven't had a car accident for 30 years, but I still insure myself. I suspect a similar logic is being used. The excess for loss of life or limb at events probably requires a cash reserve being accrued. Just guessing.
That's the point though isn't it. We insure against claims. What are uninsured claims about? You don't insure your car then hold half your yearly income in an account in case there's some other claim you hadn't considered. Either the people who arrange the insurance need to do a better deal or it's an excess. An excess is totally quantifiable as £ figure, nothing to do with % of turnover.
Here's my last stab at this. A friend of mine is a partner in a top city firm of accountants. At any given time there are claims against them totalling millions. They are actively considering cancelling all their liability insurance as they are beginning to think no one would be suing them at all if there was no insurance co. to pay up.
When I was a member of the club I understood that my liability was £1 so why have a huge reserve. If there was some world shattering claim the club could be wound up costing £1 each and reopened as mscc2015 or whatever.
That's me done now.
Nick
