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Schemes

The five schemes offered by Statewide Mutual are:

  • Liability scheme
  • Property Mutual scheme
  • Crime (Fidelity Guarantee) scheme
  • Councillors’ and Officers’ cover
  • Motor Vehicle cover

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Liability scheme

The Statewide Mutual Liability scheme provides Public Liability, Products Liability and Professional Indemnity protection to Member Councils throughout NSW. The self-insurance component level of cover is $400 million on Public Liability and Products Liability, and $300 million on Professional Indemnity. Members carry varying deductibles from $12,500 up to an amount relative to their risk appetite.

The scheme provides for an annual Risk Management Incentive Bonus. To date, this had totalled $32.4 million.

Property Mutual scheme

The Property Mutual scheme provides protection for your assets, covering an agreed self-insured retention (SIR) amount which is fully funded and capped. Once this agreed SIR amount is exhausted, conventional excess layer coverage takes effect, up to an overall limit of $2 billion in the aggregate over all members, for any one loss or series of losses arising out of the one event.

Any claims in excess of the SIR are paid by underwriters. There is no risk to you.

Sub-limits of liability apply in respect of particular risks, and each member bears a deductible.

100% of surplus contributions generate in a fund year are rebated to you once all claims been finalised. To date, this had totalled $32.5 million.

Crime (Fidelity Guarantee) scheme

The Statewide Mutual Crime (Fidelity Guarantee) scheme provides protection in respect of fraudulent embezzlement or misappropriation of money or goods belonging to a Member Council. Cover is provided up to a limit of $2 million in respect to any one loss. This is dependent on the size of a council in terms of revenue.

The scheme carries a SIR component of the first $100,000 on any one claim, while each member carries a deductible of 1% of a claim with a minimum of $500.

Total contributions for 2012/13 were rebated to members, with an additional $204,000  rebated for 2014/15. The scheme has also been re-rated so actual cost to Member Councils has been reduced.

Councillors’ and Officers’ cover

Councillors’ and Officer’s cover is a stand-alone product that caters to the protection of Member Councils’ elected officials and staff. It covers individuals as a result of being part of councils and includes five key areas of protection:

  • Councillors and Officers
    Protects insured persons (councillor, officers and senior managers) against claims alleging they have committed a ‘wrongful act’.
  • Council reimbursement
    Protects the council against any claims relating to ‘wrongful acts’ (where the council has indemnified the insured person).
  • Employment Practices Liability Insurance
    Protects the council from claims arising out of any employment practices claims, such as for discrimination, sexual harassment or unfair dismissal.
  • Council statutory liability
    Paying to an employee any loss arising from any ‘wrongful breach claim’ (e.g. breaches of Occupational Health & Safety laws)
  • Council supplementary legal expenses
    Paying to the council for any ‘representation costs’ for them to prepare for, and attend an investigation.

Motor Vehicle cover

Statewide Mutual provides comprehensive motor vehicle cover across a Member Council’s fleet. This includes:

  • Third Party Liability limit – $30 million
  • Hazardous Goods limit – $5 million
  • Automatic Additions limit – $600, 000
  • Basic Deductible – $500
  • Capped Deductible for any one event – $10, 000
  • Members may be eligible for a claims experience discount

There is also a ‘Tools of the Trade’ limit of $30 million. This is an important feature of Motor Vehicle Cover as it’s not covered under the Liability scheme.