Insurance fund
30(1)The Council may establish a fund (in this paragraph referred to as " the insurance fund ") to be available for making good such losses, damages, costs and expenses as may from time to time arise in respect of such risks as the Council may determine (in this paragraph referred to as " the specified risks ").
(2)The establishment of the insurance fund shall not prevent the Council from insuring in any insurance office in the United Kingdom against the whole or any part of the specified risks.
(3)The Council shall in respect of each year after the establishment of the insurance fund pay into that fund such sum as they think necessary not exceeding the aggregate of—
(a)a sum which in their opinion would be the aggregate amount of the premiums which would be payable during the year if the Council were fully insured against the specified risks in an insurance office in the United Kingdom ; and
(b)a sum equal to the amount of any income arising from the fund which is carried to the general London account of the Council's general fund under sub-paragraph (6) of this paragraph ;
but so long as the insurance fund amounts to or exceeds a sum which in the opinion of the Council is reasonably necessary to cover the specified risks the Council may if they think fit discontinue the yearly payments required by this sub-paragraph.
(4)The amount by which any sum paid into the insurance fund in respect of any year exceeds the sum referred to in sub-paragraph (3)(b) of this paragraph may at the discretion of the Council be provided from the respective revenues, funds or rates which, if the specified risks were insured in an insurance office, would be properly chargeable with the payment of the premiums on that insurance or may be provided as a payment for general London purposes.
(5)Pending the application of the insurance fund for the purposes authorised by this paragraph, the moneys in the fund shall, unless applied in any other manner authorised by any enactment, be invested in any investment for the time being authorised by law for the investment of trust property ; and sections 1 to 6 of the Trustee Investments Act 1961 shall apply in relation to the power of investment conferred on the Council by this sub-paragraph as if the Council were trustees and the insurance fund were trust property.
(6)Any income arising from the investment of money in the insurance fund or otherwise from the application of that fund shall be credited to the general London account of the Council's general fund.
(7)If at any time the insurance fund is insufficient to make good any losses, damages, costs or expenses arising in respect of any specified risk, the Council shall make good the deficiency as a payment for general London purposes and may for that purpose borrow money.
(8)Where the Council insure against any risk in any insurance office in the United Kingdom, the Council may if they think fit pay out of the insurance fund any premiums payable in respect of that insurance; but no such premium shall be so paid if in consequence of the payment the fund would be reduced to less than the sum which in the opinion of the Council is reasonably necessary to cover the specified risks.
(9)Any covenant or obligation binding on the Council to insure against any risk shall, except in so far as the terms of the covenant or obligation otherwise specifically provide, be deemed to be satisfied by a determination by the Council that that risk shall be a specified risk.
(10)Without prejudice to the generality of the last foregoing sub-paragraph, where the effecting by the Council of an insurance in respect of any risk would satisfy any obligation imposed on the Council by section 119(1) of the Local Government Act 1933, a determination by the Council that that risk shall be a specified risk shall be deemed to satisfy that obligation.
(11)References in this paragraph to insurance in an insurance office in the United Kingdom shall be deemed to include references to insurance with an underwriter carrying on business in the United Kingdom.