Assistant Treasurer Senator Helen Coonan today welcomed the Australian Competition and Consumer Commission's interim approval of a co-insurance pool to make cover more available to not-for-profit organisations in New South Wales.
Allianz Australia Insurance Ltd, NRMA Insurance and QBE Insurance (Australia) Ltd have worked together to establish the Community Care Underwriting Agency. Senator Coonan called on the industry to consider such a scheme earlier this year.
The proposed product, Community Liability Insurance, is designed for organisations that have a turnover and funding of no more than $2 million per annum and that have people involved on a volunteer basis.
"I am very pleased that the insurance industry has taken up this initiative," Senator Helen Coonan said.
"Its implementation in New South Wales has been made possible by the law reform introduced at Federal and State levels. Small sporting and community organisations operating in New South Wales will have access to a new source of public liability insurance.
"The co-insurance pool demonstrates the very real contribution that tort law reform can make to resolving the problems in the public liability market.
"In a meeting that I convened with State and Territory Ministers on November 15, Ministers from around the country agreed on a nationally consistent package of reforms which, when implemented will go a long way to providing stability and affordability in the insurance market.
"Today's announcement together with the recent indications that insurers are re-entering the public liability market are a strong indication that the changes being implemented by Governments around Australia are achieving concrete results."
Senator Coonan said the group would begin providing cover as soon as the NSW Governor gave assent to legislative reforms passed by both houses of NSW Parliament.
Not-for-profits in NSW seeking to insure with the new scheme should visit www.community-care.com.au and register their interest.