We also manage, but do not underwrite, the RiskCover Fund and Community Insurance Fund on behalf of the Government of Western Australia. The State Government of Western Australia indemnifies the Insurance Commission for any deficit in the Government Insurance Fund.
For more detailed information on all of these Funds, please refer to the Financial Statements and Key Performance Indicators of our Annual Report.
The Third Party Insurance Fund issues and undertakes liability under policies of insurance as required by the Motor Vehicle (Third Party Insurance) Act 1943.
In accordance with this Act, the owners and drivers of 2.0 million Western Australian registered vehicles (which includes caravans and trailers) are issued with a Policy of Insurance by the Insurance Commission and are provided with unlimited indemnity against death or bodily injury claims from motor vehicle crashes under the Compulsory Third Party (Personal Injury) Insurance scheme.
The Policy is combined with every motor vehicle licence and the Department for Planning and Infrastructure and its agents issue the policies and collect the premiums on behalf of the Insurance Commission.
This Fund is managed by Insurance Commission's Motor Vehicle Personal Injury Division.
As from 1 July 1997 the Government of Western Australia adopted a Managed Fund approach to administer all insurable risks of its public authorities on a self-insurance basis. Subsequently, the RiskCover Fund commenced on 1 July 1997. It was established to administer the self-insurance arrangements for Western Australian State Government public authorities (agencies). It is a simple and effective insurance arrangement, designed to efficiently and economically assist the Government of Western Australia manage its risk exposure through a combination of risk management and reinsurance programs.
The Government of Western Australia's Department of Treasury and Finance underwrites the RiskCover Fund and it is managed by the Insurance Commission's RiskCover Treasury Division on behalf of the State Government and its participating public authorities. Treasury approved RiskCover managing this Fund indefinitely, with a three-year termination notification clause. Treasury supervises the activities and performance of the Insurance Commission in the management of the RiskCover Fund.
The Insurance Commission earns a management fee from this activity, equivalent to the proportion of the Insurance Commission's services used by RiskCover.
RiskCover's assets are not owned by the Insurance Commission and are therefore not consolidated. The investment assets of RiskCover are, however, included in the investment pool of the Insurance Commission represented by a Floating Rate Promissory Note. Any accumulated deficit in RiskCover represents a liability of the Government of Western Australia and not of the Insurance Commission.
For further information about RiskCover and our services.
The CIDF has been in surplus for many years and it is expected that this situation will continue.
For more information on this Fund, including the premium rates please, see our Industrial Diseases section of this website.
The claims paid from the ICGF relate to liabilities of the former State Government Insurance Office (SGIO). This Fund is in run-off and no policies have been issued since 31 December 1986.
The WorkCover Western Australia Authority manages the EISF, with the Insurance Commission liable for the payment of claims against this Fund. In response to the collapse of the HIH Group of Companies (HIH) in March 2001, the EISF was activated to fund claims for workers injured in the course of their employment prior to 15 March 2001 whose employer was insured by HIH at the time of its collapse.
All claims in relation to the collapse of HIH are managed externally by CGU Workers' Compensation Claims (an Insurance Australia Group company) on behalf of the Insurance Commission. In discharging its statutory obligations, the RiskCover Division continues to provide an important supervisory role in the management of these ongoing claims and it is expected this role will continue for a number of years. WorkCover WA reimburses the Insurance Commission for all payments and expenses incurred in respect of the management of these claims.
The GIF is a consolidation of the State Government's self-insurance arrangements which preceded RiskCover. The Fund is in run-off and the RiskCover Division manages it on behalf of the Department of Treasury and Finance. The financial aspects of the GIF are reported in the Insurance Commission's Financial Statements, however the State Government of Western Australia indemnifies the Insurance Commission for any deficit in the Fund.
The CIF provides eligible incorporated not-for-profit community organisations based in Western Australia with "affordable" insurance cover (particularly public liability). The RiskCover Division manages the CIF, however it is underwritten by the Government of Western Australia.
Reduced demand to join the CIF combined with a number of participating organisations electing not to renew, gave support to the widely held view that the General Insurance market has recovered and is now willing to provide public liability cover at an "affordable" price. The CIF however, continues to deliver not-for-profit organisations with a valuable resource where coverage from the private insurance industry cannot be reasonably achieved.
The Government has decided to close the Community Insurance Fund to new members from 30 June 2007 and will not offer renewal to existing members past 31 January 2008.
This decision is in consequence of the general insurance market now actively seeking business and offering "affordable" premium rates to Community Organisations.
The Community Insurance Fund delivered not-for-profit organisations with a valuable resource where coverage from the private insurance industry could not be reasonably achieved.