Don Shields District Insurance Officer 9780 May 2011

Don Shields District Insurance Officer 9780 May 2011

Early History of Insurance Industry • • • Ancient Chinese 3000 BC – share load, & 750 BC concept of “General Average” Babylonians 1750 BC – contribute 10, 000 Derriks into government treasury & can draw twice this amount if catastrophe, Romans 400 AD – Benevolent or Friendly Society (Life Insurance) to pay funeral costs.

Modern Insurance History • Four merchants having a cup of coffee @ Edwin Lloyd’s coffee house, Tower St, London in 1688 – Marine Insurance • Great Fire of London in 1666 – totally uninsured but fresh in memory. Fire warehouse of merchants – General Insurance - 1690 • Life Insurance – 1694 • Reinsurance - 1846 • Income Protection – 1850 • Workers Compensation - 1855 • Health Insurance – 1929

TODAY • Actuaries use statistical information such as mortality tables to calculate: - the likelihood of an event occurring the possible cost of an event the total amount needed the amount each person covered by the insurance needs to pay – the ‘premium’

PROBLEM • There are over 35, 000 Rotarians in our region undertaking a diverse range of activities • How does an actuary calculate the premium to cover all Rotarians and volunteers for: - Property - Liability - Personal injury & Travel - Officers Liability - Answer – claims rated/burning cost

HOW TO HELP KEEP PREMIUMS LOW • Reducing the likelihood of an event happening that could lead to a claim • Achieved by undertaking a risk analysis for every event your club undertakes no matter the size and developing a Risk Management Plan • Ongoing projects/events require regularly reviews of the risk analysis & updates to the Risk Management Plan, • Informing participants & have the Risk Management Plan at the activity for reference

WHAT IS RISK ASSESSMENT • In very simple terms a risk analysis or assessment… - Identifies a risk that may lead to a claim - Sets out steps to take to reduce that risk - Informs participants of the identified risks and the steps to be put in place to reduce the risks It also indicates if the level of risk is acceptable to the club conducting the event

WHY CONDUCT RISK ASSESSMENT Risk Assessment is not just for Insurance, consider: n n n Public Relations - Image and reputation of your club and Rotary should something go wrong; Membership (existing and new prospects) Financial (not just claim excess but bad PR may effect clubs ability to raise funds)

COVER PROVIDED 2010/11 Who is covered? All Rotary Districts, Clubs (including Rotaract & Interact), Committees & Sub. Committees, Rotarians & their families, Volunteers and participants taking part in a Rotary event Note: Why not publish a copy of Insurance Summary on your Club Website to inform members – its not a secret!!!

COVER PROVIDED 2010/11 1. Property (ISR) - owned by the club or when the club is responsible for the property - Covered anywhere in our region - Cover/Limits: - Static Risks $50, 000 - Transit $50, 000 except Art $25, 000 - Theft in open air $25, 000 - Money $50, 000 - Personal Effects $5, 000 person & $50, 000 total

COVER PROVIDED 2010/11 1. Property continued • Cover/Limits (continued): Art Shows $100, 000 item $500, 000 total n Machinery Breakdown $5, 000 n Spoilage of Stock $5, 000 n Contract Works $100, 000 (was $250, 000) n Property outside Australia $20, 000 n • Excess: $500 Personal Effects & Machinery Breakdown (was $1, 500); $1, 500 other losses (except Earthquake Subterranean Fire & Volcano)

COVER PROVIDED 2010/11 1. Property Exclusions • • • Locomotives/Watercraft/Aircraft Registered Vehicles Animals/Birds/Fish Standing timber/Crops/Pastures Bridges/Roads/Dams/Tunnels/Docks/Wharves Property underground War/Terrorism/Radioactivity/Nuclear Fraud/Dishonest acts Settling/Erosion/Subsidence

COVER PROVIDED 2010/11 Under Insurance means you may only be paid a proportion of the amount claim/loss Clubs with declared assets with replacement values of $50, 000 or more: Ararat; Boort; Drysdale; East Geelong; and Horsham In last 12 months Replacement Values have increased 20%. In my 7 years as DIO there has been approx 60% increase, yet clubs have generally not reviewed their sums insured. Google: “BMT Quantity Surveyors” http: //www. bmtqs. com. au/Construction. Cost. Calculator. aspx

COVER PROVIDED 2010/11 2. Legal Liability (Public & Products Liability) covers • injury and property damage arising our of official Rotary activities where negligence involved/alleged • Legal costs and expenses Limits of liability • $50 M any occurrence (& in aggregate for Product Liability) • $2 Million Molestation any claim & in aggregate. • $150, 000 Statutory Liability any claim & in aggregate • $100, 000 Goods in Care Custody or Control • Includes Vicarious Liability for Markets

COVER PROVIDED 2010/11 2. Public Liability Continued Excludes - Railways (other than model trains for amusement rides), - Rodeos & all animal rides, - Regular childcare services, - Martial arts or firearm activities, - Building or demolishing over $250 K - Participation in sports, trials, races etc - Pharmaceuticals - Malpractice/Treatment Risk (new)

COVER PROVIDED 2010/11 2. Public Liability Continued Excesses. . • $1, 000 any occurrence (cost inclusive) • NIL for individual members • $25, 000 any claim and $125, 000 aggregate any perpetrator for molestation Molestation Retroactive date 30 August 2005 Complete incident reports straight away & fax or email to DIO (better to be proactive).

COVER PROVIDED 2010/11 3. Personal Accident and Travel Covers: - Lump Sum on Death and disablement - Weekly Income replacement persons aged 18 to 79 = $1, 500 (was $1, 000). - Emergency Home Help $150 per week - Non-Medicare Medical $3, 000 - Kidnap & Ransom $250, 000 - Loss of Deposit $10, 000 - Baggage $7, 000 ($1, 500 any item) - Money & Travel documents $2, 000 - Electronic Equipment $7, 000 - Medical & Additional Expenses – unlimited - Political Evacuation $10, 000 - Personal Liability $20 Million

COVER PROVIDED 2010/11 3. Personal Accident and Travel (continued) Limitations: • Travel cover journey must be over 50 km • Journey limited to 90 days including up to 60 days private travel • Benefit amount depends on age: n n • Death & Lump Sum up to & including age 90 Income up to & including age 79 Nil excess except 7 days for income replacement and $250 Electronic Equipment

COVER PROVIDED 2010/11 3. Personal Accident and Travel (continued) Exclusions: • • • war, self-injury, childbirth, HIV/AIDS Flying in privately owned & operated aircraft Professional sports of any kind Hernia howsoever caused Person over the age of 95 Pre- existing conditions exclusion has been deleted but approval from usual doctor must be obtained advising fit to travel Wording/PDS/FSG download District 9780 website

COVER PROVIDED 2010/11 4. Association Liability $2 Million – includes • Directors & Office Bearers Liability, • Association Entity & Reimbursement, • Professional Indemnity, • Fidelity Guarantee (limit $10, 000), • Employment Practices, and • Taxation Investigation (limit $10, 000). In simple terms covers District for liability incurred for such things as libel or slander, wrongdoings by office bearers, theft of funds etc

COVER PROVIDED 2010/11 4. Association Liability (continued) Extensions Loss of Documents, External Directorships, Joint Venture, OH&S, Breach of Copyright, Spousal Liability, Fines & Penalties ($100, 000), Exclusions Medical, Financial or Legal Services, Contractual Liability, Guarantees & Warranties, Pollution Excesses Fidelity $5, 000, Taxation Investigation $2, 000, Insured vs Insured $1, 000, NIL all other claims Note: Claims Made policy

COVER PROVIDED 2010/11 5. Fidelity/Crime (new cover this year) Covers Loss arising as result of dishonesty by Rotarians, Volunteers, Employees, Students & Secondees whilst performing services to Rotary. Limit any loss $50, 000 & in aggregate any policy year $200, 000 Exclusions n n n Fines, Penalties or damages except compensatory Errors or Omissions committed or omitted by you Loss after you become aware acts committed Cost incurred to establish existence of loss Loss of confidential information Indirect or consequential loss Excesses: $5, 000 each & every claim

COVER PROVIDED 2010/11 6. Caravan/Trailer Insurance (optional – so after many years of advising clubs to insure own trailers, this cover was dropped 2010/11) Covers trailers & caravans as declared • Cover: Trailers $5, 000/Caravan $10, 000 • Third Party Property Damage $10 Million • Supplementary Bodily Injury $5 Million Excesses: $500 except whilst hired out $1, 000

What you & your club members MUST do 1. Risk Management – every activity 2. Advise DIO as soon as possible of all potential claims 3. Annually review value of club assets 4. Respond to DIO’s requests for info 5. Read the Insurance Summary on the District 9780 Website, and only then contact the DIO 6. If you have any questions, put them to the DIO in writing (prefer email)

What the DIO does n n Answer questions about the policy and refers matter if necessary to Rotary’s Broker Supply of Certificates of Currency & Claim forms (most of which are also on the District Website) Forwards claim to Rotary’s Broker Renewal forms (based on number of Rotarians & value of assets of clubs)

What the DIO does not do 1. 2. 3. 4. Provide financial advice Represent the Broker or the Insurers (but the District) Want to hear about every activity your club does – only where you have read insurance summary and are uncertain or have questions Check or complete your Risk Management

Cost per Rotarian 2010/11 Industrial Special Risks $2. 26 (09/10 $2. 26) Public Liability $8. 37 (09/10 $8. 68) Personal Accident/Travel $4. 73 (09/10 $4. 73) Association Liability $0. 96 (09/10 $0. 96) Fidelity/Crime $0. 21 (09/10 Nil) Caravan (per district) – Not selected (09/10 $0. 31) Total $16. 53 (09/10 $16. 94)

CONTACT DETAILS Don Shields 32 -34 Ormond Road, East Geelong 3219 P O Box 96, Geelong 3220 Work (03) 5229 0061 Mobile 0419 390 303 don@gibvic. com. au