64.13 Insurance Review Procedure

64.13.1 This procedure shall be used to determine whether the Authority shall bear any increase or benefit from any decrease in Relevant Insurance costs.

64.13.2 On a date not sooner than twenty (20) Business Days prior to each Insurance Review Date the Contractor shall commence the following procedure.

64.13.3 The Contractor's insurance broker shall prepare a report on behalf of both the Contractor and the Authority (the Joint Insurance Cost Report). The Joint Insurance Cost Report is to be prepared at the Contractor's expense and should, as a minimum, contain the following information for the relevant Insurance Review Period:

(a) A full breakdown of the Actual Relevant Insurance Cost;

(b) A full breakdown of the Base Relevant Insurance Cost;

(i) the sum(s) insured/limit of indemnity (i.e. rateable factor) for each of the Relevant Insurances;

(ii) the premium rate for each of the Relevant Insurances;

(iii) the net premium paid (or to be paid) for each of the Relevant Insurances (i.e. excluding both insurance premium tax and brokers fees and commissions);

(iv) the deductible(s) for each Relevant Insurance;

(v) details of any claims (paid or reserved) (including incident date, type and quantum) in excess of £[ ]187, being the amount stated in Clause 64.7;

(d) An assessment and quantification of each Project Insurance Change together with reasons therefor;

(e) Full details of any Portfolio Cost Savings;

(f) Any other reasons that the Contractor believes may have caused a change (by way of increase or decrease relative to the Base Relevant Insurance Cost) in the Actual Relevant Insurance Cost;

(g) The opinion of the Contractor's insurance broker as to the reasons why the Actual Relevant Insurance Cost has varied from the Base Relevant Insurance Cost, specifying the impact of each of the factors and quantifying the amount attributable to each factor specified above; and

(h) The calculation of the Insurance Cost Differential and any Exceptional Cost or Exceptional Saving arising from this calculation;

(i) Evidence satisfactory to the Authority (acting reasonably) of any changes to circumstances generally prevailing in the Relevant Insurance Market that are claimed to account for the Insurance Cost Differential.

64.13.4 The Contractor shall procure that its insurance broker no later than the date which is ten (10) Business Days after the Insurance Review Date, delivers to the Authority at the same time as it delivers to the Contractor at least two copies of the Joint Insurance Cost Report. At the same time the Contractor should send a copy of its Insurance Summary Sheet to HM Treasury private finance unit or its nominee. Following receipt of the Joint Insurance Cost Report, the Authority shall notify the Contractor in writing within fifteen (15) Business Days whether or not it accepts the Joint Insurance Cost Report including full details of any disagreement. If the Authority does not provide such notification and/or details of any disagreement to the Contractor within fifteen (15) Business Days, the Authority shall be deemed to have accepted the Joint Insurance Cost Report. If the Authority disagrees with any item in the Joint Insurance Cost Report, the Parties shall use their respective reasonable endeavours acting in good faith to agree the contents of the Joint Insurance Cost Report. If the Parties fail to agree the contents of the Joint Insurance Cost Report within thirty five (35) Business Days from the date it was delivered to the Authority, the matter shall be resolved pursuant to clause 67 (Dispute Resolution) provided always that references in clause 68.4 to an expert shall be construed as references to an independent insurance expert agreed by the parties or, in the absence of agreement, appointed by the President for the time being of the Chartered Institute of Arbitrators..

64.13.5 The Authority may make the Joint Insurance Cost Report available to HM Treasury or any of HM Treasury's agents or advisors for insurance cost verification, benchmarking or similar purpose.

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187 This amount should correspond to the amount agreed under Clause [ ].