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V25-504 : MMI SCHEME OF ARRANGEMENT

Updated information to 31 March 1997 had been received in respect of the Scheme of Arrangement for the winding up of Municipal Mutual Insurance Ltd, the Council's former insurer.

This latest information showed an improved financial position and the Directors felt that a solvent run-off of the company's liabilities could be anticipated. However, members were made aware that under the Scheme of Arrangement and in the event of a deficit the company would be able to clawback from its members any claim payments made in excess of £50,000. At 31 March 1997, this authority's contingent liability to clawback stood at £215,173. In addition, third party and employer's liability claims estimated at £158,992 remained unsettled.

RECOMMENDED

That the contingent liability of some £374,000 for claims, paid and unpaid, at 31 March 1997 which could be subject to clawback by Municipal Mutual Insurance in the event of that company's insolvency be noted.

Volume 25 Minute 504

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