Risk Management-an Insurance Perspective

Rotary District 9820

2015 Presidents Elect Seminar

Frank Spiteri

District Insurance Officer

franksp245@gmail.com 0497386363

District Insurance Officer Frank Spiteri

Rotary District 9820

Session in two Parts

Part 1 High level details about the Insurance

covers currently in place.

Part 2 Discussion about the information

sort by/provided to the insurers. Club Protection Officer

Rotary District 9820

Part 1

Summary of Covers

Who is Covered by the Rotary Insurance program

Members of Rotary, Rotaract, other

Rotary Bodies and Volunteers, whilst

participating in a formal Rotary activity

Rotary District 9820

Public Liability

Public/Products Liability $50,000,000 Molestation $ 2,000,000 Statutory Liability (Fines & Penalties) $ 150,000

Deductibles: Public/Products $ 1,000 (Nil for individuals) Molestation $25,000 Statutory Liability $ 5,000 ($1,000 for individuals)

contd.....

Rotary District 9820

Activities excluded under the Public Liability Program

1. - Rodeos

- Trains or railways other than model railways used for amusement rides;

- Animal Rides;

- Regular child care services;

- Martial Arts activities comprising but not limited to teaching, training, trials,

contests, displays and/or competitions;

- Firearm activities (including hunting) comprising of but not limited to teaching,

training, trials, contests, displays and/or competitions

2. Construction/Demolition over $250,000

3. Pharmaceutical Exclusion

4. Participation Exclusion – Excludes all claims arising from participation in any sport, game, match, race, practice, training course, trial, contest or competition other than as organisers

Rotary District 9820

Property Insurance

Automatic cover for –

Static Rotary property/assets for up to $50,000

$ 1,500 excess

Members personal property for up to $5,000

$500 excess

Personal Accident Policy What is covered - Death Benefits of up $250,000 Loss of pre-disability earnings of up to

$1,500 per week.(Depending on age) Medical Expenses, that are not eligible for

Medicare rebate or otherwise recoverable, of up to $5,000 .

Age Limits and Exclusions apply

Travel Policy

What is covered

Major covers- Baggage $7,000 Medical Expenses Unlimited Kidnap/Extortion $250,000

Age Limits and Exclusions apply

Miscellaneous

Trailer/Caravan

Automatic cover for up to $10,000 (CMV)

per unit.

$500 excess

Association Liability

Various Limits

Part 2

Information sort by / provided to the insurers

The Insurer’s entitlement regarding the

information supplied to them

Club Protection Officer

Common Law

Contract Law

The Insurer’s Expectations Clubs practice appropriate Risk Management

Club Protection Officer is appointed whenever a club is involved in Youth programs. Clubs practice the protocols as declared in the Rotary Australian Youth Abuse and Harassment Prevention Policy. See following slide.

Volunteer Decs/ Working with Children Checks are registered and up to date

Clubs are familiar with Incident reporting procedures

Rotary District 9820

RI Statement of Conduct for Working with Youth

“Rotary International strives to create and maintain a safe environment for all youth who participate in Rotary activities. To the best of their ability, Rotarians, Rotarian’s spouses and partners, and other volunteers must safeguard the children and young people they come into contact with, and protect them from physical, sexual and emotional abuse”.

Rotary District 9820

Club Protection Officer

The duties of the CPO are to:

Ensure that all of The Club’s duties in relation to hosting and or

sponsoring students have been carried out in accordance with

Rotary protocols

Verify that the required forms and checks have been satisfactorily

completed.

Maintain and record up-to-date check lists and declarations.

Note: The CPO should be a Rotarian who is not involved

in the club’s Youth Exchange Program.

Rotary District 9820

Why is Risk Management important ?

Premium management.The premiums paid to the Underwriter (and therefore our membership fees) are directly

affected by the amount of claims. $20 per member.

Surety of coverThe Insurers are entitled to expect that the information supplied to them is accurate. Incorrect information may give the insurer the right to deny indemnity.

Paper Trail/Defence Documented evidence of proper Risk Management is an essential tool in defending an action.

Moral obligationsWe are also morally obliged to ensure the safety of all persons

If in doubt call the DIO.

Rotary District 9820

Things to remember

Any planned major event that exposes Rotary must be signed off by the DG. Refer to DIO if you are unsure.

Rotary organisations must not make alternative insurance arrangements without the knowledge or consent of Rotary’s insurers.

All “sub-contractors” to Rotary must provide evidence of their own $10m Liability Insurance.

Rotary District 9820

Scenario 1

A volunteer at the warehouse suffers pain in his back after moving some furniture. An incident report was filled in by Rotary Club. He subsequently attends a medical clinic and is prescribed pain relief. But the pain recurred. He revisited the medical clinic. The volunteer claimed reimbursement of the medical fees from Medicare and the Club paid the ‘gap’ and medication.If the volunteer comes back sometime in the future claiming the injury has prevented him gaining employment or has caused him to be incapacitated is any claim likely to be covered by Rotary insurance?

Answer

No.

The Personal Accident policy covers up to 85% of pre-disability earnings. Limited to a maximum of $1,500 per week for 156 weeks.

Note: If the volunteer sues The Rotary Club because it contributed to the incident by a negligent act, then that would be a Public Liability policy issue.

Scenario 2

A member is injured in an accident whilst driving a Club vehicle whilst carrying out voluntary work.

Answer

No. The Rotary policy does not cover any medical expenses that are recoverable from Medicare or any other source.

Note: As the injury was sustained whilst driving a vehicle the TAC will cover such expenses and loss of income.

Scenario 3

A member of the public is injured whilst on Club premises. What cover is provided by Rotary insurance?

Answer

Rotary has Public Liability cover with a Limit of Indemnity of $50,000,000.

The injured person will have to establish that the injury was the result of a negligent act of the Rotary Club. Depending on the outcome, the injured person could be entitled to full financial compensation.

Scenario 4

A member or volunteer is burned by the spilling of hot oil whilst engaged in cooking at a Club sponsored event. What cover does Rotary insurance provide?

Answer

Assume that the incident was not caused by a negligent act of the Rotary Club.

The Personal Accident policy will cover :

-up to 85% of pre-injury earnings.

Limited to a max. of $1,500 per week for up to156 weeks and subject to age limits.

-up to $250 per week for emergency Home Help for up to 26 weeks. Not subject to age limits.

Note: The policy does not provide cover for medical expenses covered by Medicare.

Scenario 5

A vehicle owned by a member of the public is damaged whilst on Club premises or at an event run by the club, by the non negligent action of a member or volunteer.  

Is there any cover under Rotary insurance?

Answer - No

Scenario 6

Is there any cover for a member or volunteer travelling to or from a Club activity (other than a club meeting) or between sites of a voluntary activity?

Answer

The Rotary Program covers travel whilst on Rotary business, but only if the journey is to a destination more than 50 kms from the residence. Does not include normal travel to Rotary meetings.

Note: Injuries sustained whilst travelling in a vehicle are normally covered by TAC insurance.

Can a Rotary Club run another Organisation’s project so it can be covered under Rotary’s liability policy?

Rotary District 9820

Answer

No, Projects must meet the following criteria to be covered by The Rotary Insurance Program :

The project must be a worthy community event It must be 100% Rotary project and named accordingly. The organising committee will be mainly made of

Rotarians using Rotary Risk Management procedures. All monies raised must go to a specific Rotary account. The event to be publicised as a Rotary activity.