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4.—(1) The Scheme applies to any liability to any third party to which a member is subject in respect of loss, damage or injury which–
(a)arises out of the carrying out of any relevant function of that member;
(b)is a qualifying liability; and
(c)is not a qualifying liability for the purposes of the National Health Service (Clinical Negligence Scheme) Regulations 1996(1), the National Health Service (Existing Liabilities Scheme) Regulations 1996(2) or a qualifying expense for the purposes of the National Health Service (Property Expenses Scheme) Regulations 1999(3).
(2) In this regulation–
“board member” means, in respect of a member, any member of the board of that member whether or not that person is an employee of that member;
“personal injury” includes bodily injury, death, disease, illness and nervous shock and is to be treated as including wrongful arrest, detention, imprisonment and malicious prosecution;
“relevant person” means, in respect of a member, a person employed or engaged by that member;
“qualifying liability” means, in respect of a member, a liability which falls within one or more of the following categories–
a liability in respect of personal injury sustained by a relevant person arising out of and in the course of his or her employment or engagement by the member;
a liability in respect of or consequent upon personal injury or loss arising out of or in connection with any breach of a duty of care or breach of any statutory duty or breach of a duty under any of the Occupiers' Liability Act 1957(4), the Occupiers' Liability Act 1984(5) or the Defective Premises Act 1972(6) in each case owed by the member to any person in consequence of any act or omission to act on the part of any relevant person;
a contractual liability in respect of personal injury to any person or damage to any property of any third party;
a liability arising out of the act or omission to act on the part of a relevant person which is dishonest, fraudulent, criminal or malicious;
a liability arising out of the making or publishing of any defamatory statement (whether in written or oral form) by the member or a relevant person;
a contractual liability to make payment to any relevant person in connection with any personal injury sustained by the relevant person directly as a result of assault;
any legally enforceable liability in respect of or consequent upon personal injury or loss arising out of or in connection with any tortious or other wrongful act committed by any relevant person;
a liability arising out of any indemnity properly given by any member to any board member;
any liability in respect of any consequential or ancillary expense which arises in connection with any liability referred to in any of the above categories.
(3) The Secretary of State and a member may agree–
(a)a minimum level of liability which must arise before a payment or other provision in respect of such a liability may be made under the Scheme; and
(b)an amount which is to be the maximum amount of any payment or other provision in respect of such a liability which may be made under the Scheme.
S.I. 1996/251, as amended by S.I. 1997/527.
S.I. 1996/686, as amended by S.I. 1997/526.
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