INSURANCE PREMIUM SAVINGS
Does your group want to save more money by spending less on Insurance Premiums??
If the answer is no, then don’t read any further.
If the answer is yes, then ATHRA is hear to help you.
ATHRA in the past has attempted to get a reductionin insurance premiums for our member groups. Unfortunately this has been extremely difficult due to the lack of organisations willing to provide us with information.
Unless we get a large group of members wanting to get better terms on their insurance (and we all know our insurance premiums are the single largest expense we all have) then ATHRA can’t go shopping for you.
One of the advantages of being an ATHRA member is having access to an insurance pool which enables ATHRA to shop around to gain better terms and of course a better premium for its members than members can do as individuals. The more members that in that insurance pool the more weight ATHRA has to obtain better terms. Quite simply a large group of policies is more attractive to an underwriter than single policies and the easier it is for us to negotiate terms.
From the outset, at this stage this is not an insurance mutual where there is one policy to cover everyone. Each railway/museum will still hold their own policy. However a mutual is an option that ATHRA is exploring. A mutual is essentially a pool of money available for claims and this is underwritten by an insurer. The more groups involved in the pool the better and thus ATHRA essentially self insures when that pool of money hits a critical figure. This means premiums can be significantly reduced. Once again this is something ATHRA is exploring further but in the meantime ATHRA wishes to obtain better terms and premiums for its members via an insurance pool via “bulk buying power”.
Members do not have to participate in this scheme. This scheme had been set up with ATHRA in the past and significant reductions in premiums were obtained. In fact ATHRA’s inception in 2003 (and subsequent incorporation in 2004) was result of many railways being closed because of the inability to obtain affordable insurance along with the ever increasing demands of regulation.
ATHRA is in the process of going to market and find the best terms and premiums from a multitude of underwriters and reinsurers including Lloyds of London, QBE, Chubb, etc. Only reputable underwriters will be used and not some dodgy underwriters from the Cayman Islands. Coming onboard with ATHRA’s pool of insurance will mean you should save substantial money on your premium. Members should not see this as an opportunity to get a better price to go back to their current insurer and negotiate a better price as this will only mean the scheme will come unstuck over time; it may be cheaper the first year or so but prices will continue to rise as we have witnessed over past years. Having a buying group means we have some control over the price as $1M worth of policies is far more attractive to an insurer than several $10K policies. Members also need to realise that the underwriters and reinsurers are small in numbers and are probably similar to the ones you currently have. However as a large group, we can get better terms and cheaper premiums with a lot less administrative burden on your organisation.
Members should not see this as being ATHRA spying on your operation and ATHRA will not be sharing this information with anyone other than insurers. In fact we only want the collation of information to begin with so that we can go to market.
We can also go to market for many types of insurance such as:
|Protector/Association Liability : Legal remedies against non-profit associations and their directors and office bearers are little different from those available against a company and its directors.|
|Public Liability : Legal liability to pay compensation (including legal expenses) to third parties in the event of the insured causing or being alleged to have caused injury, death or loss of or damage to property arising out of business operations or products.|
|Public Liability Historic Railway : As above with additional cover for Historic Railways|
|Property Rolling Stock : Covers the cost of repairing or replacing Rolling Stock following physical loss or damage by an insured peril including resultant business interruption.|
|Property : Covers the cost of repairing or replacing assets following physical loss or damage by an insured peril including resultant business interruption. Including whilst in transit within Australia|
|Voluntary Workers : Accidental injury or death, and the payment of weekly benefits, whilst engaged in various volunteer activities including travel associated therewith.|
|Journey : Protects employees whilst travelling directly between the boundaries of their place of residence and place of business, for the purposes of starting or ending their day’s work. For example, you trip and fall whilst on your way to work.|
|Cyber : Specially designed solution which addresses the liability of companies arising from data protections laws, the management of personal data and the consequence of losing corporate information.|
|Business Travel : Covers employees & volunteers who are travelling on business that become sick, suffer a serious injury or find themselves in a potentially dangerous situation.|
|Motor : Covering vehicles owned by the insured & Covers loss of excess, no claim bonus and hire costs for vehicles not owned by your organisation (such as volunteer or employee owned vehicles) but being used on behalf of the organisation|
Cyber insurance is an emerging need in society today especially if you have a data base of both members and public contact details (via newsletters, Facebook etc). Under the Privacy Act you have to ensure you protect these details. In the rare event that you have a cyber attack and those private details have been hacked and harvested, you are required by law to report this and make good. This could be a very expensive exercise and hence having this sort of insurance will help soften the financial blow to a member.
Many of our members have their policies expiring over the next few months and some later in the year. To ensure all ATHRA members benefit, we suggest that all ATHRA members complete a questionnaire/application and submit it to ATHRA no later than 31st August 2018 so ATHRA can go to market and obtain the best terms for our members now and secure against future price rises. Collating this information will take time and we request members return this information by August 31 to allow ATHRA to get the best deal possible for our members. Please remember most policies are renewed in October so we need plenty of time to collate and get new terms for you and have these back to your own organisations to consider well before the renewal date.
Should you have any queries, please don’t hesitate to contact me and either myself or the insurance work party will endeavour to answer your questions or find the information for you. You can contact me at email@example.com .
The ATHRA Board is excited about being able to offer this benefit to members and trusts members will enjoy the benefits. This is just one way amongst many your Association is working for you.
Paul Rollason – Vice Chairman/ONRSR Liaison/Insurance Coordinator