Firm Neglected to Purchase Compulsory Insurance

A car wash company in Essex has been fined £6,750 for failing to purchase compulsory insurance to protect its employees.

The court heard how Prowash Systems Limited, which runs a car wash in Rayleigh, failed to produce a current Employers' Liability Compulsory Insurance (ELCI) certificate when a Health and Safety Awareness Officer from the HSE visited the premises in December 2009.

All employers need to have an ELCI certificate and must show a copy to a HSE official immediately on request, but when Prowash Systems failed to do this it was issued with a "notice to produce".

The company did not comply with this notice and representatives from the company failed to attend an interview with HSE inspectors.

Prowash Systems Limited failed to attend court so magistrates in Southend heard the case in the company's absence, finding it guilty of five breaches of Section 1(1) of the Employers' Liability (Compulsory Insurance) Act 1969.

Magistrates also found the company guilty of breaching Section 4(2)(b) of the same Act, for failing to produce a valid ELCI certificate upon request.

Prowash Systems Limited has its registered office at Leigh House, Weald Road, Brentwood.

Copyright © Press Association 2010

David Urpeth at Law Firm Irwin Mitchell said: "I welcome the fine imposed in this case. I am seeing a worrying trend in cases of companies failing to take out employers liability insurance despite it being a legal requirement to do so. Such conduct can and does leave workers without much needed compensation in the event of a work accident. As a result victims of an accident at work can find themselves unable to pay for treatment and rehabilitation."