Property - Cover

Introduction
Cover
Exclusions
Extent of cover

Introduction

The Fund provides property cover to participating entities for loss of or damage to property and/or machinery breakdown from sudden or unexpected or unforeseen circumstances, as well as any reasonable consequential costs due to business interruption arising from the damage. It also covers loss of or damage to property caused by theft, theft of monies, and loss of or damage to goods in transit.

Cover

Cover is provided for:
  • loss of (including theft) or damage to (excluding normal wear and tear) all property (including money) a participating entity owns or has an interest in or for which the participating entity is responsible ("property and business interruption"). This includes:
    • buildings and contents; 
    • any built structure or improvement to land, for example landscaping or gardens;
    • building fit-out, stock or mobile plant,
    • any consequential additional expenditure required to maintain service at pre-incident levels (but not normal operational expenses);
  • subject to a police investigation, the fraudulent misappropriation of goods or monies by officials or employees ("fraud/fidelity");
  • damage to machinery (eg lifts, boilers, medical diagnostic equipment, computers and servers), and any consequential loss of records, resulting from a mechanical or electronic breakdown ("machinery breakdown");
  • loss of or damage to a marine vessel and its equipment (including its trailer if that trailer is declared for the purpose of the Fund) ("marine hull"). If the vessel is normally carried on a trailer, cover includes periods when the vessel is being towed or garaged. "Marine hull" cover is purchased from the private sector and coverage includes third party property damage and personal injury for which the participating entity is liable. Please note that only those vessels that are specifically declared to the private insurer are insured. If a vessel is not declared it is not insured;
  • loss of or damage to a government vehicle under the conrol of:
    • a government employee;
    • a member of a government employee's family or a person required to use a private plated vehicle in accordance with section 8.4 of the Tasmanian Government Motor Vehicle Allocation and Use Policy; or
    • ​a person authorised to use a government vehicle in accordance with section 7.3 of the Tasmanian Government Motor Vehicle Allocation and Use Policy 
​     ​ ​​("motor vehicle property");
  • any associated third party property damage for which the participating entity is legally liable provided the government vehicle is under the control of:
    • a government employee;
    • a member of a government employee's family or a person required to use a private plated vehicle in accordance with section 8.4 of the Tasmanian Government Motor Vehicle Allocation and Use Policy; or
    • ​a person authorised to use a government vehicle in accordance with section 7.3 of the Tasmanian Government Motor Vehicle Allocation and Use Policy [Note: This does not include liability for or of a person assumed by a participant pursuant to an agreement with the third party, where such risk otherwise would rest with the third party.] 
​     ​ ​​("motor vehicle liability");


 

​However, participating entities should consider recovering claim costs from an employee if that employee was not acting in 'good faith' (based on advice from the Fund Administartion Agent and Crown Law) at the time of the incident (eg whilst driving under the influence of alcohol or certain other drugs).


 

Where an indemnity has been provided to a Public Officer of a particating 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 - Indemnity and Legal Assistance), the Fund will cover the Public Officer in relation to third party property claims incurred whilst using a government vehicle.

"Government vehicle" includes:

      • vehicles leased through the Government's Fleet Manager; and
      • any other motor vehicle (eg light commercial motor vehicles, motor bikes, trailers, etc) owned and operated by a participating entity;

Third party personal injury costs are insured through the Motor Accidents Insurance Board.

Note: Treasury must be advised of any significant (+10 per cent) change to property assets held by the participating entity to ensure that contributions are adjusted to properly reflect the risk exposure of the participating entity. In addition, Treasury must be advised of any property acquisition with a replacement value of $20 000 000 and above for the purpose of insuring the asset in the event of a catastrophe.      ​

Exclusions

Cover is not provided for:
  • normal wear and tear, including rust or corrosion;
  • motor vehicle breakdowns, either mechanical or electronic;
  • hired or borrowed vehicles. Treasury has established a common-use contract for rental of passenger vehicles in Tasmania and throughout Australia.  Under the agreement, the hire vehicle and any associated liability is covered by the hire company and there is no excess payable by agencies (subject to terms and conditions).  See the Purchasing website for further information;
  • damage to or loss of employee or volunteer property (other than employee household goods in transit), including loss or damage to private motor vehicles or vessels. If employees or volunteers are required to use private motor vehicles or vessels as part of their employment or assistance to government, it is their responsibility to have the vehicle / vessel comprehensively insured (see Ministerial Direction No. 1.1 2002 - Administration); or
  • work done under a capital works contract. Building contractors are required to purchase Public Liability Insurance and Insurance of the Works through special policies organised by the Department of Treasury and Finance with the Fund Administration Agent. Building consultants wishing to do work for government agencies are required to maintain their own public liability and professional indemnity insurance. See the Purchasing website for further information.

Extent of Cover

General
Motor Vehicles

General

Subject to nominated excesses, cover is provided for expenses relative to the cost of dealing with the property. For clarity this includes:
  • the replacement, repair and/or reinstatement of the property;
  • where appropriate, any temporary repairs required to render premises safe or prevent further damage; and
  • any claim investigation and/or legal fees provided that the claim investigation fees are considered reasonable by the Fund Administration Agent and the legal services have been provided or sanctioned by the Office of the Solicitor-General.

Cover is limited to an asset's replacement value as declared by participating entities in Treasury's biennial review of participant assets. See Important Information for further information on the declaration of participant assets.

 
Cover does not extend to the cost of undertaking any risk mitigation work.

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.

Cover for consequential "business interruption" costs is limited to any increased working costs incurred by the participating entity to maintain services at pre-incident levels.

Cover for special items (curios, antiques and works of art) is based on the cost to replace, repair or restore the article to the condition that it was in immediately prior to the insured event, or the lesser of two valuations provided by independent, qualified valuers.

Motor Vehicles

Subject to nominated excesses, motor vehicle cover includes:

the cost to repair a vehicle - provided that the repair cost does not exceed the market value of the vehicle;
If the cost to repair a vehicle is more than its market value, the Fund will pay its market value in settlement (unless the vehicle is less than 12 months old, in which case the Fund will pay the full replacement value).

third party property damage for which the participating entity is legally liable;

reasonable costs incurred in removing the vehicle to an approved repairer or a place of safety;

costs incurred to clean up or remove debris resulting from goods falling or leaking from an agency vehicle;

fixed vehicle accessories supplied at the time of ordering a vehicle. Subsequently fitted, fixed accessories/modifications are not included under the Fund's motor vehicle cover. Non-fixed property and equipment would be a separate property claim; and

any claim investigation and/or legal fees provided that the claim investigation fees are considered reasonable by the Fund Administration Agent and the legal services have been provided or sanctioned by the Office of the Solicitor-General.

>> Claims Process

 >> Further Information


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