How the Fund works



The Tasmanian Risk Management Fund (the Fund) is the Tasmanian Government's self-insurance fund. It was established on 1 January 1999 and provides a whole-of-government approach to funding and managing specific identified insurable liabilities of participants.

The Department of Treasury and Finance is responsible for the administration and management of the Fund and reports to the Minister for Finance on policy issues. See Roles and responsibilities for further information.


Minimise the cost of risk to government through the management of an efficient self-insurance arrangement.


The Fund's objectives are to:

  • ensure adequate financial provision is made for the cost of risk;
  • be responsive to changing conditions in the insurance environment; and
  • provide an efficient and effective claims administration service to participants.

Purpose of the Fund


All inner-Budget agencies are required to participate in the Fund and, subject to its date of joining, are covered for identified risks to which it is exposed or for which it wishes to accept responsibility and which the Fund agrees to cover. A number of other Government entities and agency-related entities also participate in the Fund and may only be covered for specific risks (see Entities covered by the Fund). The risks covered by the Fund include:

  • workers' c​ompensation/personal accident;
  • legal liability;
  • property; and
  • travel.

Marine hull and travel insurance are insured through the private sector: the former due to cost efficiencies, the latter in order to benefit from a worldwide emergency assistance scheme. All other categories of risk are self-insured. A detailed description of the cover extended to participants is provided in the relevant section under "Incident Management".

The Fund operates on a cost-recovery basis with contributions set to ensure adequate financial provision for the cost of risk now and in the future. All participants pay annual contributions to meet claims costs, administrative expenses, and where applicable, insurance premiums and reinsurance costs. The level of a participant's contribution is determined by an independent actuary and reflects their coverage, risk exposure, claims experience and nominated excess amounts.

In setting contributions, the Fund aims to achieve:

  • the collection of sufficient moneys each year to fund claims costs and alleviate the financial impact of large unexpected events;
  • equity for participants with minimal cross-subsidisation;
  • stability in contributions over time; and
  • incentives for risk management, through recognition of claims experience.

The Fund's finances are managed through the Tasmanian State Service Risk Management Account in the Public Account.

Statement of the Fund

The Fund is not an insurer, but a self-insurance arrangement, to manage a set of well understood, identified insurable risks. The Fund does not deal with, nor cover, all insurable risks for Government nor does it provide cover to all Government entities.

Information on the identified, insurable risks covered by or through the Fund is provided in the relevant section under "Incident Management". See Entities covered by the Fund for information on the entities covered by or through the Fund.

The general approach for determining whether cover will be extended for new risks outside those detailed under "Incident Management", whether this arises through the acquisition of an asset or the undertaking of a new activity, is for a participating entity to:

  • make a formal decision that it is prepared to accept the risk;
  • contact Treasury and provide information necessary to enable Treasury to evaluate whether the risk can be properly identified, assessed and covered either by the Fund or through the Fund.

When determining whether a matter should be covered by or through the Fund, Treasury will have regard to:

  • whether the risk arises during the normal course of business for the participating entity;
  • the nature of the risk exposure, quantum of any potential loss and adequacy of notification period;
  • actuarial advice taking into account the viability of the Fund for the already identified set of risks covered by the Fund, the overall liabilities of the Fund and the capacity to provide effective provisioning for the new risk through the Fund over the long term; and
  • insurance industry advice on the cost and scope of insurance cover provided by external insurers which might otherwise be available.

Where a decision is made that the risk will be covered by the Fund, the Fund's Actuary will determine an appropriate contribution.

Where a decision is made that the risk will be covered by the Fund but not self-insured, Treasury will coordinate the purchase of external cover through the Fund Administration Agent and seek reimbursement from the relevant participant(s).

Where a decision is made that the risk will not be covered either by or through the Fund, then all decisions relating to, and management of, the risk will reside fully with the participant.

In summary, the Fund will cover:

  • either by or through the Fund, the set of identified, insurable risks specified in the sections under "Incident Management";
  • the participants, in accordance with their approved risk coverage detailed under Entities covered by the Fund; and
  • any new risks or entities deemed appropriate for the Fund to accept for cover, either by or through the Fund (by applying the decision-making process above), subject to adjustments to contributions or payment of external premiums.

Entities covered by the Fund

Part A: Inner-Budget Agency Participants
Part B: Other Government Entity Participants
Part C: Agency-related entities
Part D: Indemnified persons

Part A: Inner-Budget Agency Participants
All inner-Budget agencies are required to participate in the Fund and are provided with cover for all risk areas referrred to under "Incident Management". The inner-Budget agencies are:

Department of Communities Tasmania

Department of Education

Department of Health

Department of Justice

Department of Natural Resources and Environment Tasmania

Department of Police, Fire and Emergency Management 

Department of Premier and Cabinet

Department of State Growth

Department of Treasury and Finance

House of Assembly

Integrity Commission

Legislative Council


Office of the Director of Public Prosecutions

Office of the Governor

Office of the Ombudsman

Tasmanian Audit Office

Reference should also be made to Part C: Agency-related entities.

Part B: Other Government Entity Participants
The following entities are covered by the Fund as detailed below:

    Brand Tasmania (full cover)
    Environment Protection Authority (full cover)
    Inland Fisheries Service (workers' compensation cover only)
    Port Arthur Historic Site Management Authority (workers' compensation cover only)
    Private Forests Tasmania (workers' compensation cover only)
    Royal Tasmanian Botanical Gardens ​(workers' compensation cover only)​
    State Fire Commission (full cover excluding motor vehicle cover)
    TasTAFE (full cover)
    Tourism Tasmania (full cover)

​Part C: Agency-related entities
Agency-related entities that meet the criteria outlined in the policy statement on cover for agency-related entities and have been approved for cover either by or through the Fund are set out below. Except where otherwise indicated, full cover as detailed under "Incident Management", is provided. The inclusion of risk cover for an agency-related entity is reflected in the related paticipant's contributions to the Fund.
Anzac Day Trust
Arthur Pieman Conservation Area Management Committee
Asbestos Compensation Commissioner
Community Respect Orders Program
Environmental Management and Pollution Control Board
​Environmental Protection Policy Review Panel
Waste Water Reuse Committee
Integrity Commission Board
Integrity Tribunal
Licensing Board of Tasmania
Local Government Board
Looking Glass Productions
National Parks and Wildlife Advisory Council
Northern High Schools Sports Association Inc (legal liability cover only)
North West High Schools Sports Association Inc (legal liability cover only)
Office for the Commissioner for Children
Children and Young Persons Consultative Council
Children and Young Persons Advisory Council
Children's Visitors Pilot Program
Office of the Tasmanian Economic Regulator
Office of Tasmanian Assessment, Standards and Certification
OTTER Customer Consultative Committee
Parliamentary Standards Commissioner
Police and Community Youth Clubs (excluding legal liability cover)
Police Review Board
Positive Ageing Advisory Committee
Premier's Disability Advisory Council
Premier's Local Government Council
Primary School Sports Tasmania Inc (legal liability cover only)
School Associations established under the Education Act 2016 (excluding workers compensation cover for employees of school associations)
Schools Registration Board
Service Tasmania Board
Skills Tasmania
Southern High Schools Sports Association Inc (legal liability cover only)
Southern Primary Schools Sports Association Inc (legal liability cover only)
State Grants Commission
State Marine Pollution Committee
Stronger Communities Taskforce
Superannuation Commission
Tasmanian Advisory Council of Multicultural Affairs
Tasmanian Arts Advisory Board
Aboriginal Arts Advisory Committee
Grants to Individuals Panel
Grants to Organisations Panel
Small Museums and Collections Panel
Tasmanian Climate Change Council
Tasmania Development and Resources
Tasmanian Development Board
Tasmanian Economic Regulator
Tasmanian Gaming Commission
Tasmanian Heritage Council
Archaeological Advisory Panel
Tasmanian Heritage Council Communications Committee
Tasmanian Heritage Council Registration Committee
Works Application Assessment Committee
Tasmanian Planning Commission
Tasmanian Police Charity Trust
Tasmanian Police Historical Society
Tasmanian Police Pipe Band
Tasmanian Veterans Advisory Council
Tasmanian Wilderness World Heritage Consultative Committee
Tasmanian Women's Council
TasTAFE Board
Teachers Registration Board
TMD Board
Tourism Tasmania Board
Trustees of the Tasmanian Museum and Art Gallery
Art Foundation of Tasmania Council
Tasmanian Aboriginal Advisory Council
Voluntary Assisted Dying Commission
Youth Services Education Program


Part D: Indemnified persons
The Fund will cover personal liability where an indemnity has been provided to a Public Officer of a participating entity by the Panel established to consider an application from a Public Officer for an indemnity and/or legal assistance ('Public Officer' is defined in Employment Direction No 16 (1 January 2016) - Indemnity and Legal Assistance).


Identified Policy Statements

  Building Claims Policy   (347Kb)

Cover for agency-related entities

Claims on former agencies

Cover for agency-related entities
The policy position in respect to cover for agency-related entities, such as boards, commissions, authorities, panels and other agency-related entities, is as follows:

Cover under the Fund is generally extended only to inner-Budget agencies and other Government entities. Consideration is given, on a case-by-case basis, to include boards, commissions and other agency-related entities.

If an inner-Budget agency or other Government entity [Note: The other Government entity must be one that is afforded full cover under Part B: Other Government Entity Participants​ in order to submit an agency-related entity request.] requires cover for an entity and is willing to accept the associated risks, the inner-Budget agency or other Government entity is to submit a formal written request to Treasury, detailing how the entity meets all three of the following criteria for cover and including any relevant circumstances that it believes is applicable:

  1. the entity must be part of the General Government Sector;
  2. the entity must be significantly financed through the Public Account, either through an inner-Budget agency or other Government entity budget or by direct allocation; and
  3. there must be a high level of control by an inner-Budget agency or other Government entity over the financial and operating policies of the entity.

As the administrative arrangements and responsibilities relating to this type of entity can be complex and varied, each entity's eligibility for cover will be considered on a case-by-case basis, with Treasury considering how each entity meets the intent of the criteria. Generally cover will only be provided where the entity meets the criteria.

Treasury will advise the relevant inner-Budget agency or other Government entity once a decision on the entity's eligibility has been reached. Should cover be offered, the Fund's Actuary will then determine the appropriate additional contribution to be paid by the inner-Budget agency or other Government entity.

Claims on former participating entities​
Occasionally, claims are made against the Crown with respect to a government entity that no longer exists. The responsibility for managing and meeting the cost of these claims will be determined in accordance with the following principles:
  • as a general principle, the Fund will only be responsible for meeting claims for which contributions have been received, or which are recoverable from participating entities, or which will be met by a one-off or ongoing contribution from the Public Account through Finance-General;
  • funding will be sought from the Public Account to meet the cost of major claims made in relation to former participating entities - perhaps in the form of an annual amount over a number of years to establish an appropriate reserve (the amount to be set following advice from the Actuary);
  • if funding from the Public Account is not approved, the claims costs relating to former participating entities will be met from the "government contingency" allocation, with future agency contributions to this element being adjusted if necessary to ensure that claims costs are recovered over time;
  • "associated" participating entities will administer claims made on former participating entities and the administration cost will be absorbed by those participating entities; and
  • workers' compensation claims paid on behalf of former participating entities (ie in relation to those activities that are no longer undertaken by any government entity) will be excluded from participants' claim histories when calculating contributions to the Fund.

To ensure that the responsibility for claims can be readily assigned in future, participating entities are required to:
  • include detailed cost centre information on claims advice forwarded to the Fund Administration Agent; and
  • reallocate past claims history and assign responsibility for ongoing management of cases as part of any restructuring process.

Important Information

Accuracy of information
Advice on cover
Asset information
Claims management
Date of claim
Making a claim
Multiple claims
Period of cover
Personal injury cover - duty of care
Property not to be replaced

Accuracy of information
When the Fund agrees to provide cover or to pay a claim, the decision relies on the accuracy of the information given to it. As a result, participants must disclose relevant information, including asset information, to the Fund accurately and in a timely manner.

Marine hull cover is purchased from an external insurer, therefore only those vessels that are specifically declared to the external insurer are insured. If a vessel is not declared it is not insured.

Participating entities must ensure that all claim and payment documentation is complete, accurate and appropriate. The Fund Administration Agent has the authority to refuse incomplete or incorrect claims for payment.

Advice on cover
If a participating entity is unsure of whether cover is extended in relation to any particular circumstances, advice can be sought from Treasury.

Asset information
Information on the value of assets provided to the Fund to enable contributions to be determined should represent the full replacement value.

Participating entities must advise Treasury of any significant (+10 per cent) change to property assets held by it as the changes occur, to ensure that contributions are adjusted to properly reflect the risk exposure of the entity and/or any necessary changes to any externally placed insurance are made. In addition, Treasury must be advised of any property acquisition with a replacememt value of $5​0 000 00 and above for the purpose of insuring the asset in the event of a catastrophe.​

Information on all assets must be provided to Treasury in Treasury's biennial review of participant assets. This includes assets where a decision has been made by the participant that it does not intend replacing those assets in the event of loss/damage. All asset information is required to ensure that cover is available for costs associated with making safe damaged or potentially dangerous sites, clearing away debris or making partial rectification to damaged assets. Also, as noted under Accuracy of Information, in some cases a failure to specifically declare certain property may result in external cover not being available.

Claims management
Participating entities are ultimately responsible for the management of claims and must instruct the Fund Administration Agent and the Office of the Secretary General regarding the management of those claims.

Specific responsibilities regarding the management of claims are detailed in the relevant section under "Incident Management".

Commencement of cover
While the Fund was established on 1 January 1999, risks were progressively incorporated into the self-insurance arrangement as follows:

Personal Accident - from 1 July 1999

Legal Liability (excluding Medical Liability) - from 1 July 1999

Property (including Motor Vehicle) - from 1 July 1999

Workers' Compensation - from 1 July 2001 when the Fund merged with the Tasmanian State Service Workers' Compensation Scheme (originally established on 1 July 1989)

Medical Liability - Post 1 July 2001 claims - from 1 July 2001; Pre 1 July 2001 claims - from 1 July 2002

The Fund will not indemnify participants for claim costs resulting from incidents that have occurred prior to commencement of cover or prior to them joining the Fund.

Date of claim
If a claim is made in relation to a latent medical condition (eg asbestosis), the date of the claim will be taken to be the date on which the condition was first medically diagnosed.

If a claim is made, a participating entity may be required to pay one or more excesses. The descriptions of these excesses and the circumstances in which they are applied are determined at the commencement of each financial year by each participating entity. Information on excesses is available in the relevant section under About the Fund.

Under-excess claims must be met by the participating entity.

Making a claim
Claims should be made in accordance with the guidance provided in the relevant section under "Incident Management". Advice and assistance can be obtained from the Fund Administration Agent, JLT Public Sector.

A specific Procedure for Reporting of Liability Claims is available under Liability incident management.  It sets out when potential liability claims are to be reported by participating entities to the Fund Administration Agent. 

Multiple claims
Where multiple claims arise from a single occurrence at different locations, each claim is to be separately lodged and will be treated as an individual claim for the purposes of claims management under the Fund. Multiple claims may not be grouped together in order to reduce excess requirements. For example, where a severe storm results in damage to a number of Parks huts in a particular region of the State, a separate claim is to be lodged for each location, regardless of the fact that all were damaged as a result of the same event.

Period of cover
The Fund will meet all legitimate claims costs (less nominated excesses) relating to incidents that occurred after participating entities joined the Fund and for which that entity is provided with cover (see Entities covered by the Fund for information on the extent of cover provided).

In relation to agency-related entities, the Fund will meet all claims relating to incidents that occurred after the agency-related entity is approved for cover and for which the agency-related entity is provided cover.

Subject to the policy statement on claims on former agencies, entities are generally responsible for claims costs relating to incidents which occurred prior to these dates.

Any specific risk area limitations on the period of cover are included in the information relevant to that risk area under "Incident Management".

Property not to be replaced
In circumstances where destroyed premises are not to be rebuilt, payment outside of clean up costs is not automatic and will be determined on a case by case basis by ​ Treasury following a submission by the participating entity.

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