A code of practice for tunnelling

Abstract

The Association of British Insurers (ABI), representing insurers and re-insurers on the London-based Insurance Market, contacted the British Tunnelling Society (BTS) in October 2001 to voice their growing concerns about losses associated with tunnelling works. In view of the significant losses that had been incurred, the ABI advised that they were actively considering various options open to them including the continued provision of insurance for such works. Insurers identified the tunnelling sector as one which required re-evaluation of fundamental principles under which insurance cover could be provided, if at all. The perception was that the tunnelling had had an inconsistent approach to risk management. As a way forward, the ABI sought to work with industry through the BTS to develop a 'Joint Code of Practice' for use worldwide. As a forerunner to an internationally applicable Code, the 'Joint Code of Practice for Risk Management for Tunnel Works in the UK' has been prepared. The jointly agreed objective of the Code was to promote and secure best practice for the minimisation and management of risks associated with the design and construction of Tunnel Works (tunnels, caverns, shafts and associated underground structures) and including the renovation of existing underground structures. This was to be achieved by providing appropriate risk assessment and risk management procedures for Tunnel Works to: (a) reduce the probability of a loss happening; (b) reduce the size of a claim when it happened; (c) provide Insurers with a better understanding of the risks during underwriting process and hence increased certainty on financial exposure in the provision of insurance cover. However, it was acknowledged that strict implementation of and compliance with the Code will not necessarily prevent claims occurring. Fundamental principles running throughout the Code include: (a) the Code operating in parallel with existing British and European Standards and statutory and legislative duties and responsibilities; (b) hazard and associated risk identification during each of four identified stages of a project on a project-specific basis and the management of the risks to ensure their reduction to a level ''as low as reasonably practicable''; (c) the recording and summarising of risk assessments in risk registers at each stage of a project to include the identification of the party responsible for the control and management of an identified risk; (d) the 'cascading' of risk assessments/registers throughout a project to ensure that parties, at any time during a project, are made familiar with previously identified hazards and assessed associated risks; (e) risk registers to be 'live' documents which are continuously reviewed and revised as appropriate and available for scrutiny at any time; (f) insurance should not be considered as a contingency or mitigation measure in risk assessments. The Code deals with the matter of compliance, in the interest of the insurance market, by providing for insurers to reserve the right to suspend or cancel all cover under an insurance contract if the insurers become aware of what they consider to be a breach of the Code. The insurance market has accepted the intent and content of the Code, in terms of principles, in relation to risk management for tunnel works in the UK and the Code is being actively implemented in the UK. It is intended that a Code will now be prepared for use internationally by the insurance market based on the same framework and principles. (A) Reprinted with permission from Elsevier. For the covering abstract see ITRD E124500.