Insurance Guidelines for Resident Committees

This is broken down into the Scheme Operator’s responsibility and the responsibilities of the individual resident

Material Damage

Material Damage is the physical loss or damage to an item such as a building and its contents. After a fire, flood, burglary, earthquake or other such event, there is obvious destruction, loss or damage to buildings and its contents. A building includes improvements and fixtures forming part of the building. Contents are the items that are moveable such as household and personal effects. [N.B: Loss from wear and tear or from breakdown of age are not covered]

Designation	Scheme Operator	Resident	Comments
Village Community Buildings	A scheme operator must insure and keep insured, to full replacement value, the retirement village, including the accommodation unit (other than accommodation units owned by residents), and the communal facilities.	Not applicable	All village assets are required to be covered under Section 110 of RV Act. Premium for cover is paid from Village GSF account
All fixtures and Fittings of Village Community Buildings	Scheme operator must insure	Not applicable	Premium for cover is paid from village GSF account
Residential Units/Buildings	Scheme operator must insure	Not applicable	Premium for cover is paid from village GSF account
Carpets	In most villages carpet is fitted [fixture that comes with the unit].This must be insured by scheme operator	Such item can be insured by both scheme operator and/or resident under their contents cover	Recommended all insurance claims fall to scheme operator insurance cover where carpet is provided by the village
Solar Installation/s	A fixture to the building, and should be covered under scheme operator’s insurance cover	Such item can be insured by both scheme operator and resident under the contents cover	Recommended all insurance claims fall to scheme operator insurance cover.
Fixtures and improvements agreed and approved by Scheme Operator but paid independently by the resident	Where item is a fixture to the building, and indeterminate whether removal is required at termination of lease, it should be covered by scheme operator	Such item can be insured by both scheme operator and resident under their contents cover	If indeterminate, then recommended insurance claim/s fall to scheme operator’s insurance cover.

Fidelity Insurance

An agreement whereby, for a designated sum of money, one party agrees to guarantee the loyalty and honesty of an agent, officer, or employee of an employer by promising to compensate the employer for losses incurred as a result of the disloyalty or dishonesty of such individuals.

Most villages will from time to time run social and festive events of some sort. To run an event will likely incur the collection of money. Irrespective of who handles that money, the village must stand the risk of potential misappropriation of that money.

In many cases a social committee may collect the money, run a bar or whatever, and in most cases the money is likely to be handed to the village receptionist/Manager for safe keeping. Therefore all persons actually handling money [irrespective of that role] have a responsibility of care and trust to the party who effectively own the money……the residents and/or their committee

Designation	Scheme Operator	Resident	Comments
Village Management	Likely to handle village money and have a duty of care, therefore should hold insurance cover	Not applicable	Recommended where money is involved fidelity insurance be effected in the name of the village and extended to include all members of resident committee/s
Resident’s Committee	Likely to handle money and have a duty of care. Negotiate with village management for insurance cover by village	Not applicable	Recommended fidelity insurance be effected by scheme operator and extended to include all members of resident committee/s

Voluntary Workers

This is a designated insurance cover arranged by the village for the benefit of that resident, who have accepted doing [unpaid] work/task within the village. The task may be simply assisting with some office work, or, maybe assisting with the moving of chairs and the like.

Because volunteers may not be eligible for cover under workers compensation, their income or medical expenses may not be covered if they are hurt while working. So it’s important that any voluntary workers in the village are protected against the potential financial loss that injuries can bring them.

Gardening in the common area of the village can be a relaxing and worthwhile pastime, but this particular task, unless requested by scheme operator &/or managers, may not be covered

Designation	Scheme Operator	Resident	Comments
Office Work / Reception	Scheme operator &/or Village Manager/s responsibility.	Needs to be given written confirmation they are covered by village insurance	It is usual to have a capped age limit for insurance. This will vary, so written confirmation would be advisable
Cleaning the Bowls Green	Scheme operator &/or Village Manager/s responsibility.	Needs to be given written confirmation they are covered by village insurance	Check on capped age limit
Shifting furniture for social event	Scheme operator &/or Village Manager/s responsibility.	Needs to be given written confirmation they are covered by village insurance	Check on capped age limit
Shifting furniture around the pool or BBQ	Scheme operator &/or Village Manager/s responsibility.	Needs to be given written confirmation they are covered by village insurance	Check on capped age limit
Gardening in common area of village	Scheme operator &/or Village Manager/s responsibility.	Needs to be given written confirmation they are covered by village insurance	Check on capped age limit

Public Liability

Under Section 110 of the Retirement Villages Act 1999 a Scheme Operator must ensure that Public Liability Insurance is taken out for the business of a retirement village.

Public Liability Insurance will pay all sums which the Insured shall become legally liable to pay by way of compensation in respect of Injury and/or damage as a result of an Occurrence in connection with the Insured’s Business.

Every person who enters a retirement village has the potential to injure or damage property belonging to the retirement village
Every person who enters a retirement village has the potential to suffer injury or damage to their property whilst on the premises of the retirement village

Designation	Scheme Operator	Resident	Comments
Ownership of village thus the scheme operator	Required by RV Act to take out insurance	Not applicable	Resident/s who have taken out contents insurance need to check their cover contains public liability [called personal liability] for their own protection
Management of village	Required by RV Act to take out insurance for all activities of the village. Villages where food is prepared and/or sold may also require their public liability cover extended to include Products Liability	Not applicable	The scheme operator’s cover should be extended to include each resident. Villages where food is prepared and/or sold may also require their public liability cover extended to include Products Liability

Policy Excess

Most insurance policies provide for the payment of an excess by the insured in the event of a claim being made. It might therefore be expected that when the insured is the scheme operator that they should pay the policy excess.
Instances have arisen in the past where the scheme operator/management has sought to pass the insurance excess to the resident of the unit concerned. Should this occur, it is recommended the resident (who must be a member of ARQRV) refer the matter to ARQRV for investigation, advice, and where necessary, representation with the scheme operator/management.