Schemes

Fidelity Guarantee Mutual

The Statewide Mutual Fidelity Guarantee Scheme was established in 1995 and provides protection in respect of fraudulent embezzlement or misappropriation of money or goods belonging to the Council. Cover is provided up to a limit of $1,000,000 in respect of any one employee. The Scheme carries a self insurance component of the first $50,000 on any claim, while each Member Council carries a deductible of 1% of a claim with a minimum of $500. 50% of surpluses generated under the Scheme are rebated annually to Member Councils.

Liability Mutual

The Statewide Mutual Liability Scheme was established in 1994, to provide Public Liability, Products Liability and Professional Indemnity protection to Member Councils throughout New South Wales, at a time when market conditions were less than favourable for the Local Government Sector. Similar Schemes operate in each State of Australia.
The structure of the NSW programme, in the first years of operation, was based on a major self insurance component ($2,000,000) and Excess Layer Insurance up to $100,000,000 on Public Liability & Products Liability, and $50,000,000 on Professional Indemnity. Each Member Council carried a minimum deductible of $5,000.

Since 1998, the self insurance component has been reinsured and the level of cover has been increased to $400,000,000 on Public Liability & Products Liability and $300,000,000 on Professional Indemnity. Members carry varying deductibles up to $100,000.

Property Mutual

The Statewide Mutual Property Scheme commenced operating on 30 June 1998, and since that date has continued to grow and to operate successfully.
The Scheme provides protection in respect of the Members’ assets, covering an agreed Self Insured Retention amount, which is reviewed annually. Once this agreed Self Insured Retention amount is exhausted, conventional Excess Layer insurance coverage takes effect, up to an overall limit of $2 billion in the aggregate over all Members, for any one loss or series of losses arising out of the one event.
Sub-Limits of Liability apply in respect of particular risks, and each Member bears a Deductible.