Insurance news from the MAV. 
MAV Insurance Bulletin

Issue 29: June-July 2016
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In this issue:

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Liability Mutual Insurance Scheme limits raised
Commonwealth Home Support Program
Court decision on nervous shock duty of care
MAV Insurance Risk Management Award
Newly revised guidance documents

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Liability Mutual Insurance Scheme limits raised

Councils would have learned about the new Liability Mutual Insurance (LMI) scheme limits when they received their 2016-17 renewal letters.

Raising the limits has been a major initiative of the scheme and follows the recommendations of the independent limits review conducted by KPMG, and consultation with members.

The move will see limits raised to $500 million for each liability claim (up from $400 million) and $500 million for professional indemnity claims (up from $300 million). The increase in coverage will ensure that members are protected against current and future catastrophic risks.

To learn more about the limits review visit our members-only website.

Commonwealth Home Support Program

MAV Insurance has had a number of queries about the Commonwealth Home Support Program (CHSP) run by the Commonwealth Department of Health (DOH), which will transition from the State-administered Home And Community Care (HACC) services program from 1 August.

The scope of services councils will take on under the CHSP are outlined under a Comprehensive Grant Agreement provided to relevant councils by DOH. The terms and conditions of this agreement requires councils to hold activity-specific public liability insurance, as specified within the agreement schedule.

The range of activities is similar to (or the same as) services already provided under the HACC program, and are therefore covered under the LMI scheme policy, subject to the policy terms and conditions. If a council is taking on an activity that is different to those previously conducted under the HACC program, they should contact MAV Insurance to ensure they are covered. MAV Insurance can also provide a Certificate of Currency if needed.

Any queries you may have regarding the LMI liability insurance policy coverage, please contact Frank Loschiavo on 8664 9310.

Court decision on nervous shock duty of care

The Victorian Supreme Court has ruled on a strike out application that dealt with the law as it relates to nervous shock injuries sustained by relatives of people seriously injured or killed in accidents.

In the matter of Homsi v Homsi the mother of a driver killed in a motor car accident, for which he was solely responsible, was seeking to sue her son for the nervous shock injury she allegedly sustained as a result of his death. The law is well established and allows for people who suffer such injury to sue the negligent party responsible for the death of a loved one. However, this case was different in that the negligent party the plaintiff wanted to sue was, in fact, that loved one.

The Court struck out the plaintiff's action, ruling that the deceased did not owe a duty of care to his mother not to injure himself. A summary of the finding is at the top of page 19.

MAV Insurance Risk Management Award

Nominations will open in September for our annual Risk Management Award. The award seeks to recognise best practice risk management by members, and provide an opportunity for the successful nominees to attend the major international RIMS Conference 2017 in Philadelphia on 23-26 April to build on their skills.

This year’s award will again be provided to one Victorian MAV Insurance member employee and one Tasmanian member employee. The award winner will be announced in December. Further nomination details will be announced shortly.

Newly revised guidance documents

Some key guidance documents have recently been updated and are now available on our members-only website. These documents are:

The main updates made to each document are highlighted on the title page.

MAV Insurance is currently looking to develop a guidance document for Mixed Use Trails – typically bushland trails, fire trails, and rail trails that are utilised by a variety of user types such as horses, dog walkers, cyclists, and the like.

This has been the subject of a number of recent Help Desk queries and site inspections, and should be of particular benefit to rural and urban fringe councils.

MAV Insurance encourages input from members regarding potential topics for Best Practice Manuals, so if you would like to request a specific topic, or if you have a query for MAV Insurance, please contact:


Reminder to sign-up for the next round of Best Practice Forums

The next round of Best Practice Forums is fast approaching. All members should have received agendas along with forum locations. Please contact Sharyn Larocca to register.

  • 13 July – Southern Tasmania – Clarence City Council
  • 14 July – Northern Tasmania – Northern Midlands Council
  • 20 July – Vic North West Region – Yarriambiack Shire Council
  • 21 July – Vic South West Region – Ararat Rural City Council
  • 28 July – Vic Metro regions – MAV Insurance office
  • 1 August – Vic Northern Central Region – Strathbogie Shire Council
  • 4 August – Vic Eastern Rural Region – South Gippsland Shire Council

Victorian LMI scheme members will soon be sent a copy of the updated LMI Road Management Guidance document. This round of Victorian forums will 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 encourage council staff that are responsible for designing the RMP to also attend.

LMI scheme customer satisfaction survey

MAV Insurance will soon be sending out a survey to members of its LMI scheme to get their views on the level of service they are receiving and what could be improved.

The survey will be sent to the relevant risk or insurance contact at each council, and we would greatly appreciate it if members could take 15 minutes to complete the survey.

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