Insurance news from the MAV. 
MAV Insurance Bulletin

Issue 28: April/May 2016
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In this issue:

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Renewal process
What is a reasonable intervention level for a footpath defect?
Recommended indemnity and insurance clauses for agreements between Victorian councils and the State Government
Claim forms and appointment of loss adjusters and solicitors
Drones coverage under LMI policy
Insufficiently secured temporary structures at public events
Liability Mutual Insurance Scheme Quick Facts
Events

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Renewal process

All LMI scheme members will now have received an invitation to submit a proposal for the renewal of their public liability and professional indemnity insurance for the 2016-17 year. We anticipate that members will be advised of renewal premiums in late May or early June.

The LMI scheme is a directly-provided insurance product – there is no broker that places the insurance for a council and the scheme cannot respond to tenders under its rules. We are the only scheme that is an approved scheme under s.76A of the Local Government Act, which provides exemptions from tendering requirements in the Act.

What is a reasonable intervention level for a footpath defect?

With Victorian local government elections scheduled for later this year, the Road Management Act review cycle means Victorian councils will either already be in the process of reviewing their Road Management Plans (RMPs), or be about to commence their review.

For information and advice to assist with determining an appropriate intervention level for footpath defects please visit our members-only website

Recommended indemnity and insurance clauses for agreements between Victorian councils and the State Government

In 2005, MAV Insurance agreed on recommended indemnity and insurance clauses for agreements between Victorian council members of the LMI scheme (CMP at that time) and State Government departments and other clients insured by Victorian Managed Insurance Authority (VMIA).

VMIA and MAV Insurance agreed that it would be unnecessary for their respective insured’s/members to include indemnity provisions in agreements between each other.

Recommended clauses that can be included in agreements to reflect this can be found on our members-only website

Claim forms and appointment of loss adjusters and solicitors

A recent Western Australian Supreme Court decision, Ziverts v. City of Albany, has raised questions about whether councils should submit liability claim forms to their liability insurer, or agree to loss adjusters being appointed in relation to council claims, unless their insurer can guarantee privilege will be maintained over those documents.

We do not consider any insurer can guarantee privilege over claims forms submitted to insurers, due to the overwhelming case law defining legal professional privilege and litigation privilege. It has long been the position that claim forms provided to insurers, and documents created in order to assess coverage under the policy will be discoverable.

Further, loss adjusters are engaged by the LMI scheme only when appropriate to assist with the timely investigation and assessment of the claim, a practice which reduces the costs incurred by councils/the scheme on both litigated matters and non-litigated claims/incidents.

For further information about MAV Insurance’s position, contact MAV Insurance Counsel, Kristine Minghella or LMI Claims Manager Ivan Ciardullo.

Drones coverage under LMI policy

MAV Insurance will be expanding its public liability coverage under the LMI scheme to cover the use of drones in response to the increased use of these devices, including by local government. This increase in coverage will apply to the 2016-17 policy period.

Further information about how the use of drones will be incorporated into the LMI policy can be found on the members-only website  or by contacting LMI Account Executive Frank Loschiavo or MAV Insurance Counsel Kristine Minghella.

Insufficiently secured temporary structures at public events

In August of 2012, MAV developed a risk management circular informing members of the potential risks associated with land-borne inflatable devices such as jumping castles, and highlighting a number of key recommended risk mitigation measures.

MAV Insurance recently reviewed and updated this circular and while very little of the advice previously provided has changed, a recent incident in the UK reinforces the importance of robust systems to ensure such devices are properly secured, and that operators/suppliers have effective inspection and maintenance systems in place.

If you have a query for MAV Insurance, please contact:

Liability Mutual Insurance Scheme Quick Facts

Want to know more about the MAV’s LMI Scheme and the services it provides? Then read this simple fact sheet available on the members-only website

Events

MAV Insurance conferences in Tasmania and Victoria

A big thank you to all those who attended and presented at the MAV Insurance conference held in Tasmania and Victoria. Both conferences were well attended and featured speakers on a wide variety of topics relevant to local government risk management. We hope everyone enjoyed these two-day events, and we always welcome ideas regarding future presentation topics and speakers.

A reminder that the presentations from these conferences are available on our members-only websiteMembers-only content for anyone who was unable to attend, or for those wish to recap.

Next round of Best Practice Forums

The next round of best practice forums will be held in Tasmania in July, and in Victoria over July and August. Exact location details will be provided closer to the dates.

The Victorian Best Practice Forums will mostly focus on Road Management Plans (RMPs) from a risk, claims and legal perspective. This should greatly assist councils preparing to review their plans following the upcoming elections. We strongly recommend those council staff who are responsible for designing the RMP also attend

  • 13 July – Southern Tasmania
  • 14 July – Northern Tasmania
  • 20 July – Vic North West Region
  • 21 July – Vic South West Region
  • 28 July – Vic Metro regions
  • 1 August – Vic Northern Central Region
  • 4 August – Vic Eastern Rural Region.
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