Risk Management -an Insurance Perspective

1. 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

2. 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

3. Part 1 Summary of Covers

4. Who is Covered by the Rotary Insurance program Members of Rotary, Rotaract, other Rotary Bodies and Volunteers, whilst participating in a formal Rotary activity

5. 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

6. 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

7. 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 Rotary District 9820

8. 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

9. Travel Policy What is covered Major covers- • Baggage $7,000 • Medical Expenses Unlimited • Kidnap/Extortion $250,000 Age Limits and Exclusions apply

10. Miscellaneous • Trailer/Caravan Automatic cover for up to $10,000 (CMV) per unit. $500 excess • Association Liability Various Limits

11. 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

12. 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

13. 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

14. 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

15. 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 cover The 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 obligations We are also morally obliged to ensure the safety of all persons If in doubt call the DIO. Rotary District 9820

16. 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

17. 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?

18. Answer No. The Personal Accident policy covers up to 85% of pre-disabilityearnings. 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.

19. Scenario 2 A member is injured in an accident whilst driving a Club vehicle whilst carrying out voluntary work.

20. 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.

21. Scenario 3 A member of the public is injured whilst on Club premises. What cover is provided by Rotary insurance?

22. 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.

23. 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?

24. 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.

25. 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

26. 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?

27. 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.

28. Can a Rotary Club run another Organisation’s project so it can be covered under Rotary’s liability policy? Rotary District 9820

29. 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.