XI.2.1 Introduction
Purpose
10 This section of the eManual establishes the administrative policies in respect of insurance arrangements designed to manage or mitigate Organizational risks associated with the ownership, custody and management of WHO Fixed Assets and Inventory. The terms "Fixed Asset" and "Inventory" as used herein is as defined in WHO eManual, section XIII. In that respect it is noted that the term "Fixed Asset" includes, without limitation, WHO property and equipment costing more than USD 500 per unit, and the term "Inventory" includes, without limitation, inventories of medicines, vaccines, and humanitarian supplies controlled by WHO and held for distribution to third parties.
20 Insurance coverage for WHO Fixed Assets and Inventory must be obtained if any of the following conditions apply:
- where insurance is a local legislative requirement (e.g. third party insurance for motor vehicles), or
- where a single event could cause a financial loss to the Organization of USD 20,000 or more (e.g. fire in an office building or warehouse, or loss of a vehicle(s) due to accident or theft);
However, in cases where the above two conditions are not met, insurance coverage may be obtained where it is considered cost efficient or prudent rather than risk sustaining multiple cases of uninsured loss or interruption to the Organization's activities.
X1.2.2 Insurance Contracts and Claims Process
Annual Review
30 The Insurance and Risk Management unit in Headquarters (IRM) is responsible for conducting an annual review of all insurance contracts relating to WHO Fixed Assets and Inventory (excluding motor vehicles).
- The purpose of the annual review is to assess the exposure of the Organization to risks relating to the loss or damage of Fixed Assets and Inventory, and to ensure adequate and cost-effective insurance cover is in place to mitigate such risks.
- Where such review provides a basis for adjusting the minimum insurance cover described in this eManual section, approval must be obtained from the Comptroller to increase (or decrease) coverage outside of that minimum cover level.
Procurement of Insurance Coverage
40 The procurement of insurance contracts relating to WHO Fixed Assets and Inventory is managed in accordance with the policies established in eManual Section VI, Procurement, and in that respect reference is made to the provisions of Section VI.5 which mandate that certain insurance contracts be reviewed by the Headquarters or Regional Contracts Review Committee, as applicable.
Insurance Contract Claims Process
50 In the event of any claim or suspected claim of loss or injury relating to WHO Fixed Assets (excluding motor vehicles) or Inventory, IRM should be notified immediately and prior to any discussion with persons external to the Organization or settlement of any claim.
XI.2.3 Insurance of Motor Vehicles
Third Party Liability
60 WHO may be responsible for damages to third parties in matters relating to motor vehicles, including, bodily injury or property damage caused to third parties resulting from the use of a vehicle owned, or under the custody and control of, WHO.
70 The term "third parties" may include staff members, non-staff members, contingent workers and public or private entities. Damages may be claimed for death, bodily injury, property damage and loss of earning capacity.
80 Normally, under paragraph 6 of Article V of the basic agreement between WHO and a government, the Organization is not liable when an incident occurs involving a project vehicle operated under such a basic agreement.
Para 6. The Government shall be responsible for dealing with any claims which may be brought by third parties against the Organization and its advisors, agents and employees and shall hold harmless the Organization and its advisors agents and employees in case of any claims or liabilities resulting from operations under this Agreement, except where it is agreed by the Government and the Organization that such claims or liabilities arise from the gross negligence or wilful misconduct of such advisors, agents or employees.
The Office of the Legal Counsel (LEG) should be consulted on any application of this clause, on a case-by-case basis.
90 All vehicles owned, operated or under the control of WHO must be insured against the financial consequences of damages to third parties, including coverage for the risk of death or injury to passengers.
100 If third party liability insurance cannot be contracted locally, the Comptroller (or in Regions, the Director, Administration and Finance) should be consulted for its advice on appropriate action.
110 The amount of third party liability insurance coverage must be the minimum amount required under the relevant locally applicable legislation.
120 The responsibility for contracting third party liability insurance for motor vehicles rests with:
- Headquarters: the Comptroller
- Regional offices: The Director, Administration and Finance
- Country and Field Offices: The Country Office HWO
130 The decisions relating to the insurance of motor vehicles at the local or regional levels and the negotiation of the corresponding insurance policies remains the responsibility of local or regional offices and IRM approval is not required. IRM is responsible for the insurance of motor vehicles in Geneva HQ only.
United Nations Third Party Liability Insurance Policy
140 The United Nations Third Party Insurance Policy is only intended to provide Excess and Difference-in-Conditions (DIC) coverage as an addition to locally purchased cover required by law. However, in countries where local third party liability insurance is either not required by law, or cannot be obtained, the UN Third Party Insurance becomes the primary cover.
150 The United Nations Third Party Liability Insurance Policy applies to vehicles owned, operated or under the control of WHO and covers:
- bodily injury or death, and /or
- damage to third party vehicles or property.
The policy does not cover damage to vehicles owned, operated or under the control of WHO.
Insurance against Damage to Motor Vehicles Owned by WHO
160 Insurance contracts to cover physical damage to vehicles owned, operated or under the control of WHO must be obtained, in accordance with paragraph 20, where a single event could result in a financial loss of USD 20,000 or more. However, insurance coverage may be obtained where it is considered cost efficient or prudent in cases where the financial risk is lower.
170 Insurance against fire damage for vehicles owned, operated or under the control of WHO is required when:
- there is a regular concentration of vehicles in a garage or workshop, or
- any of the conditions specified in paragraph 20 are satisfied.
XI.2.4 Insurance of Land, Buildings and Construction Projects
Third Party Liability
180 As legal possessor (through ownership, renting, or other means) of premises, land and construction sites, WHO may be responsible for death or injury to persons and /or damage to the property of others.
190 To protect the Organization against such risks, general third party liability insurance is covered by the WHO global insurance program, purchased and managed by IRM. No other local or regional liability insurance policies (except for the insurance of motor vehicles) should be obtained without IRM approval.
Protection against Fire, Flood and Natural Disasters (or similar perils)
200 Buildings owned by the Organization must be insured against the risks of fire, flood, and natural disasters and against such additional threats as local circumstances warrant (e.g. hurricane or earthquake).
210 The insured value of WHO owned properties must be appraised at the current replacement value and updated at least once every 3 years. Appraisal must be conducted by an independent and locally certified appraiser, and the results communicated to HQ (IRM).
220 WHO fixed assets and Inventories must be insured against the risks of damage or loss resulting from fire, flood or natural disaster (or similar perils), subject to the threshold in paragraph 20. The insured value should be the replacement value of the goods and equipment and adapted according to the information contained in the Organization's fixed asset register and inventory system.
230 Insurance against these risks is provided by the WHO global insurance program, purchased and managed by IRM.
240 Insurance against the risks of fire, flood and natural disasters associated with construction projects is covered by the WHO global insurance program, when the total contract value is under $2.0m per project. For projects where the total contract value is $2.0m or more, IRM must be contacted to ensure additional coverage is obtained through a project specific owner coordinated insurance program.
XI.2.5 Insurance of Fixed Assets and Inventory against Damage or Loss Caused by Terrorism/Political Violence
250 Protection of WHO Fixed Assets and Inventory against terrorism (or where required due to a broader concept of political violence) is covered by the WHO global insurance program purchased and managed by IRM.
