Kincardine council renews insurance premium at 9.5% increase
By Liz Dadson

 

Kincardine Council

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Kincardine's municipal insurance premium has gone up by almost 10 per cent, but with an explanation.

In committee-of-the-whole April 1, treasurer Brenda French said the coverage for liability, property, council, and volunteer accident insurance, with Jardine Lloyd Thompson Canada Inc., is increasing by 9.5 per cent for several reasons.

First off, the population has increased but that was not calculated in the 2008 rate. The vehicle premium has decreased to reflect one less vehicles, but then increased to reflect a different mix (one more fire truck). Then, $2.8 million in equipment was missed in 2008's renewal and is included this year. The total value of property covered has increased by about $3 million. Also, Kincardine has experienced two fire claims at the Davidson Centre (settled) and two water damage claims (pending).

As a result the total proposed policy renewal premium for 2009-2010 is $208,112.23 versus $190,014.76. However, French noted that this is still below the 2007 renewal premium of $222,649.80.

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15/04/2009 08:54 PM

 She told council that Jardine is still reviewing whether it will provide full coverage under the current municipal policy for the Tiverton Old Boys Reunion as is, with conditions, or whether it will require a separate policy with a separate premium. Further information will be presented to council.

In the final analysis, the renewal represents a 9.5-per-cent increase, but of this, three per cent is due to a catch-up on under-billing from last year, 1.6 per cent is due to extra coverage last year, and 4.9 per cent represents the municipality's claims experience.

The treasurer had recommended the renewal be held until the April 8 council meeting, but councillors preferred to approve it immediately so they were not without insurance for a week.

The renewal bylaw was approved and accounts in the amount of $3,502,783.92 were also approved for payment.
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