Part I The National Health Service: England and Wales

Funding, audit and liabilities

21 Schemes for meeting losses and liabilities etc. of certain health service bodies.

(1)

The Secretary of State may by regulations made with the consent of the Treasury establish a scheme whereby any of the bodies specified in subsection (2) below may make provision to meet—

(a)

expenses arising from any loss of or damage to their property; and

(b)

liabilities to third parties for loss, damage or injury arising out of the carrying out of the functions of the bodies concerned.

(2)

The bodies referred to in subsection (1) above are—

F1(a)

Health Authorities;

(aa)

Special Health Authorities;

F2(aaa)

Primary Care Trusts;

(b)

NHS trusts;

F3(bb)

the Commission for Health Improvement;and

(c)

the Public Health Laboratory Service Board;

but a scheme under this section may limit the class or description of bodies which are eligible to participate in it.

(3)

Without prejudice to the generality of the power conferred by subsection (1) above, a scheme under this section may—

(a)

provide for the scheme to be administered by the Secretary of State or by a F4Health Authority, Special Health Authority,F5Primary Care Trust or NHS trust specified in the scheme;

(b)

require any body which participates in the scheme to make payments in accordance with the scheme; and

(c)

provide for the making of payments for the purposes of the scheme by the Secretary of State.

(4)

Without prejudice to any other power of direction conferred on the Secretary of State,—

(a)

if the Secretary of State so directs, a body which is eligible to participate in a scheme shall do so; and

(b)

where a scheme provides for it to be administered by the Secretary of State, a F4Health Authority, Special Health Authority,F5Primary Care Trust or NHS trust shall carry out such functions in connection with the administration of the scheme by the Secretary of State as he may direct.

(5)

Neither the Secretary of State nor any F4Health Authority, Special Health Authority,F5Primary Care Trust or NHS trust administering a scheme under this section shall, by virtue of their activities under the scheme, be regarded as carrying on insurance business for the purposes of the M1Insurance Companies Act 1982.