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Are insurance companies "The Silent Regulators" of H&S

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Gordon Anderson ponders - are the insurance company underwriters "The Silent Regulators" of H&S? The new Health and safety looks like it will be passed into law at the end of this week regardless of the attempts by a number of lobby groups trying to have it watered down.

Even though it is not enshrined into law, it is becoming very apparent that that Worksafe NZ are very active in its auditing of businesses compliance to H&S. The courts are also taking a much tougher line with Health and safety related cases coming before them. What is also interesting is that where before penalties tended to favour towards a "high Reparation cost" and "low prosecution cost", many judgements are now being handed down in reverse order. It seems the courts have finally woken up to the fact that reparation costs can be covered by insurance. The low penalty cost waters down the seriousness of the event under question resulting in making the penalties a non-deterrent.

In a recent article about high fence wires across gullies on farms and the danger to helicopters and other air craft, there was a very interesting comment that stated;"That a proposal under consideration by insurance underwriters to sue farmers in the event of damage to an aircraft in a farm wire strike could make a difference".Is this an indication of things to come with insurance companies or underwriters, who I call "The Silent Regulators" of health and safety will start to challenge any future claims that relate to a H&S event?

 

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