"Need for charity regulator to resolve insurance issue" - Dundee LibDem Convener

7.43.55am UTC (GMT +0000) Thu 25th May 2006

Raymond Lawrie calls for charity regulator to resolve insurance issue

Raymond Lawrie, Convener of Dundee Liberal Democrats, has today (Thursday 25th May) backed calls by the voluntary sector for the Office of the Scottish Charity Regulator (OSCR) to resolve the issue of Trustees' Indemnity Insurance.

Raymond, who is also the Chief Executive of a Dundee based charity which operates throughout the United Kingdom, said "This is not just a matter of how OSCR interprets the legislation."

Trustees' indemnity insurance is commonly use by charities to provide protection for any claims that may arise from "wrongful acts" which emerge from work of the trustees. The premium is often paid from the Charity's income and therefore, according to the OSCR, trustees are receiving a personal benefit from the charity.

The OSCR view appears to be that trustees should each hold their own indemnity insurance policies, and pay for the premiums from their own pocket.

Local organisations, such as Dundee Voluntary Action and the Volunteer Centre, have already expressed serious concerns about OSCR's view on this matter as have many national organisations such as the SCVO.

"I share the concerns of organisations at local and national level," said Raymond. "This will certainly discourage many volunteers from taking on the responsibilities of a trustee."

"Just try telling a committed and hard working volunteer that they cannot join the committee because the do not have an insurance policy!" concluded Raymond

Related Links:

Volunteering fears—call for resolution - The Courier.

Charities' fears over insurance ruling - The Courier.

Trustee Indemnity Insurance - OSCR.