Q. Are contract works covered by the Tasmanian Risk Management Fund?
A: No, contract works are not covered through the Tasmanian Risk Management Fund. A Principal-nominated Contract Works and Legal Liability insurance policy is placed by the Department of Treasury and Finance for use by contractors to cover civic (building and construction) and civil (roads and bridges) construction works. In accordance with Treasurer's Instruction PF-4 Policies Impacting on Procurement: Building and Construction / Roads and Bridges, it is mandatory for entities that are required to comply with the TI's to ensure that contractors effect insurance of works (property damage losses) and legal liability (claims made by third parties arising from the works) insurance through the Government's Principal-nominated insurance policy. As each contract is awarded the value of the contract is declared and a premium rate charged on the value of the works. The contractor is then responsible for the payment of the premium due under the policy and for the deductible (or excess) on any claims.
Q. Where can I find information about the terms, rates and deductibles under the Government's Principal-nominated Contract Works and Legal Liability insurance policy?
A: Refer to the information sheet under Insurance on the Government's Purchasing website.
Contact JLT for further information.
Q:Will the Fund cover third parties? (eg where a legal agreement requires the Fund participant to indemnify the third party for "all claims whatsoever" or to "hold harmless" the third party).
A: No. The Fund will not cover the legal liability of third parties (such as a lessor). Therefore, before entering an agreement, the Fund participant should consider whether the agreement is requiring the participant to indemnify the third party only for the participant's negligence or for the third party's negligence as well - the latter will not be covered by the Fund. By negotiation, the participant should seek to have the third party contractually accept the risks that they are in the best position to control (eg inherent building defects). The Fund Administration Agent or Office of the Crown Solicitor can provide assistance with any such complex insurance requirements.
Q: Members of the community will be participating in a training session on premises owned by the Fund participant. Are they covered by the Fund if they are injured whilst participating?
A: The Fund's legal liability cover will respond if the person is injured in circumstances where the Fund participant is found to have been negligent. See legal liability - incident management.
Q: Who do I get motor vehicle repair quotes from and how many quotes do I need?
A: Quotes are to be obtained from repairers in the appropriate category on the TRMF Motor Vehicle Bodywork Repairer List. Two quotes are required for repairs of $100 000 or less and three quotes for repairs of over $100 000 and up to $250 000. These should be forwarded to the FAA for assessment.
Q: Do I need to advise the Fleet Manager if I have an accident?
A: The Fleet Manager must be advised of all accidents/incidents involving vehicles leased through the Government's Fleet Manager.
Q: I was at fault in the accident and have received a request from the other party involved to have their vehicle repaired. What do I do?
A: If you have already lodged your claim form with the FAA, please refer the other party to them and they will attend to their request. If you have not lodged a claim form, please do so as soon as possible.
Q: Who authorises repair of my vehicle after I send the FAA the claim form and quotes?
A: The FAA will assess the claim and will authorise repairs on behalf of the Fund participant. You will be notified of the successful repairer.
Q: Does the FAA arrange a replacement vehicle whilst mine is being repaired?
A: No. Cover provided by the Fund does not include the cost of a temporary replacement vehicle.
Q: Who has responsibility for handling under-excess claims?
A: Fund participants are responsible for handling under-excess claims. However, the FAA will administer under-excess claims where a participant requests this service (this service is offered for motor vehicle, property and liability claims). Under-excess claim administration fees and claim costs are paid to the FAA directly by participants and not the Fund. See motor vehicle claims for advice on managing under-excess claims, including pro-forma letters to third parties.
Q: The third party has enquired about access to a hire car while their vehicle is being repaired. What do I do?
A: Refer them to the FAA.
Q: Are private vehicles, used for work purposes, covered by the TRMF?
A: No. Fund participants should advise employees that it is their responsibility to have the vehicle comprehensively insured. (refer to Ministerial Direction No. 1.1 2002 - Administration)
Q: If a volunteer of a Fund participant is injured while carrying out activities authorised by the participant, what benefits are they entitled to?
A: The TRMF provides no-fault personal accident cover to Fund participants for authorised volunteers of a participant. See personal accident - incident management for information about benefits.
Q: Is there any age limit on the personal accident cover provided by the TRMF?
A: There is no age restriction in relation to this cover.
Q: Does the TRMF's personal accident cover extend to cover the gap between the actual costs of medical services and any amount which a person is unable to recover in respect of those services from Medicare or a private health fund?
A: Yes. See personal accident - incident management for more information.
Q: Are volunteers of a Fund participant covered for personal accident when travelling from their place of residence to the activity authorised by the participant?
A: No. Volunteers who are injured in a motor accident may be entitled to claim from the Motor Accidents Insurance Board (MAIB).
Q: Are new buildings or other assets a particpant acquires automatically covererd by the Fund?
A: Any property acquisition (or major redevelopment) with a replcaement value of $20 000 000 or greater should be reported to the Fund. Also, any significant (+/- 10 per cent) change to the total value of property assets held by the participant (through acquisition, disposal or major property redevelopment) should be reported to the Fund. Reporting changes in property assets will ensure that contributions are adjusted to properly reflect the risk exposure of the participant.
Changes in property assets should also be recored by the participant on their own asset schedule to ensure they are included when the TRMF Asset Review is conducted every two years.
The Fund covers the liability of participants under the Workers Rehabilitation and Compensation Act 1988. For advice on the operation of the Act, refer to guidelines issued by WorkCover Tasmania.
Q: Can the TRMF Unit advise on insurance clauses in contracts?
A: No, the TRMF Unit does not have any expertise in this area. The Fund Administration Agent is the Crown's insurance broker and can assist with advice on the types and level of insurances that may be required. Fund participants will be charged directly by the FAA for costs associated with this service.