Insurable Risk

Insurable Risk

SUMMARY

The Insurable Risk Policy establishes the principles that underpin the University’s approach to ensuring that the Macquarie University has in place insurance that provides comprehensive and cost effective protection for the University’s insurable risks.

The Guideline provides further information to guide University staff, students and visitors about the insurance protections available under the University’s insurance program.

POLICY

1     PURPOSE

To ensure that the University has in place insurance that provides comprehensive and cost effective protection for the University’s insurable risks.

To ensure that the University complies with the terms and conditions of its protection wordings so as to not endanger its coverage.

2     BACKGROUND

Insurance is a risk transfer mechanism that enables the University to transfer the funding of losses to a third party, usually a mutual fund or insurance company.

Insurance is also a significant expense to the University. The main costs are premiums and deductibles that the University has agreed to pay as its share of a loss. As a general rule the higher the deductible, the lower the premium.

Over recent years, the University has progressively increased its deductibles, at the same time raising the bar in respect of the risk management of insurable risks. Losses that are below a deductible fall back to the account of the University.

The Risk and Assurance has the sole responsibility for maintaining the insurance program, promoting compliance with terms and conditions of insurance policies, managing the claim process and providing advice and information to the University community. Brokers are currently appointed for a period of three years and are remunerated by annual fees.

3     SCOPE

The Policy applies to all insurance transactions entered into by the University, with the exception of the two statutory forms of insurance, Workers Compensation and Motor Vehicle Compulsory Third Party (Green Slips).

The Policy applies to insurable risks only ie risks for which there are insurance products.

The Policy applies equally to University-controlled subsidiaries that have opted to remain insured under the University’s umbrella program.

The Policy affects staff and students. Whilst the primary purpose of the insurance program is to protect the assets and liabilities of the University, the program also protects the interests of individuals who are involved in the day to day activities of the University.

4     DEFINITIONS

Commonly defined terms are located in the University Glossary.

5     POLICY STATEMENT

The University will institute an insurance program that will:

  • sufficiently protect Macquarie University‘s investments in assets, and its revenue
  • provide indemnities against liabilities arising from the conduct of business activities
  • equally indemnify staff, students and others who assist the University
  • meet community expectations for responsible personal support during those activities
  • provide an incentive for risk management
  • achieve the best combination of price and coverage.

To ensure that its insurance program responds effectively in the event of a loss, the University will:

  • act in the utmost good faith towards its providers
  • comply with individual policy terms and conditions
  • maximise its recoveries under its insurance policies.

6     RELEVANT LEGISLATION

7     KEY RELATED DOCUMENTS

Insurable Risk Guideline

8   NOTES

8.1
Contact Officer

Insurance Manager

8.2
Implementation Officer

Director of Risk and Assurance

8.3
Approval Authority / Authorities

Chief Operating Officer and Deputy Vice-Chancellor

8.4
Date Approved

20 January 2012

8.5
Date of Commencement

20 January 2012

8.6
Date for Review

January 2015

8.7
Documents Superseded by this Policy

Insurable Risk Policy approved 30 November 2009

8.8
Amendment History

29 May 2017 - updated Approval Authority from Chief Operating Officer to Chief Operating Officer and Deputy Vice-Chancellor.
November 2015 – updated Scope by removing exclusions; replaced Office of Financial Services with Risk and Assurance; alignment with new Policy Framework template.
July 2015 – updated Insurance Manager location and Approval Authority’s title
March 2013 – Date for Next Review extended to the full three years.
January 2012 – Scope section updated with exclusions previously documented in the Insurable Risk Guideline.
December 2011 – updated with compliances and breaches statement.

GUIDELINE

1     PURPOSE

To inform and guide University staff, students and visitors about the insurance protections available under the University’s insurance program.

Insurance documents are quite lengthy and complex. This Guideline is therefore a brief summary of the protections.

This Guideline will prove helpful for staff, students and others who are ‘protected’ through group policies purchased by the University and who may want further information on the cover provided by those policies. This is particularly the case with Corporate Travel Insurance and Group Personal Accident Insurance for students.

The following specific guidelines are provided:

  • Corporate Travel Insurance
  • Directors and Officers Liability
  • General Clinical Trials
  • Group Personal Accident Insurance
  • Group Personal Accident Insurance for Volunteers
  • Property Protection
  • Marine Cargo Insurance
  • Medical Malpractice
  • Motor Fleet Insurance
  • Professional Liability
  • Public Liability / Product Liability.

NOTE: The University’s insurance policies are subject to terms, conditions, exclusions and limitations as expressed in the respective policy wordings. This guideline should not be used to determine whether cover is available under a specific wording, because this will depend on the circumstances of a loss.

2     GUIDELINE

CORPORATE TRAVEL INSURANCE
Travel Insurance should be read in the context of the University’s Travel Policy and associated documents.

Macquarie University has automatic Travel Insurance cover for 6 months. Duration can be extended on demand to a maximum of 364 days, which is the maximum duration specified in the Travel Guidelines. For any journey which exceeds 6 months, the Insurance Manager must be notified in writing prior to the trip, otherwise the Insurance will be invalid.

The University buys Group Travel Insurance to cover all the trips that the University estimates will take place in that year (individual travellers are not disclosed to the insurance company).

Once a trip has been approved in accordance with the Travel Policy, a traveller is automatically covered - there is no requirement to fill in another form or advise the insurance desk.

Travellers who are going to be away for longer than one year may require Expatriate Medical insurance that provides medical expenses cover for employees/students who are residing outside of Australia for long periods. Expatriate insurance has to be arranged before a traveller leaves Australia.

Taking leisure time during business travel
The University’s insurers cover leisure travel associated with a business trip to a maximum of 7 days. This is only applicable to staff business travel. As a general rule, the private travel portion should always be less than the business portion. If the private travel portion is over 7 days, or greater than the business portion, travellers should arrange their own insurance to cover the whole private travel portion.

Travel insurance cover for student’s leisure travel is no longer available from 1 January, 2014.

The University has entered into a referral arrangement with AIG Insurance Limited (AIG) to provide travellers with an option to purchase private travel insurance.  To purchase private travel insurance, visit:www.aigtravel.com.au/macquarieuni. Please read the Policy Wording and Product Disclosure Statement (PDS) and Supplementary Product Disclosure Statement (SPDS) carefully as the benefits are different to the cover provided by the University’s corporate travel insurance.  All questions regarding purchasing private travel insurance should be referred to AIG’s Customer Service Department on 1800 017 682.  It is your personal decision to choose to purchase from AIG or any other insurance provider for your private travel insurance. To decide if a product is right for you, please read the Policy Wording, PDS, SPDS and the Financial Services Guide (FSG). 

Travel insurance provider and coverage

The University's current travel insurer is AIG Insurance Limited. The policy number is 2200104020; it is renewed each year at 01 November.

Summary of travel Insurance benefits 
Coverage Section AIG
Personal Accident & Sickness (Death and Capital Benefits) – Insured Persons excluding Accompanying Spouse/Partner and/or Dependent ChildrenBenefit capped at percentage of
Accidental Death5 x annual income to a maximum of $500,000
Permanent Total Disablement5 x annual income to a maximum of $500,000
Other Permanent Disablement5 x annual income to a maximum of $500,000
Temporary Total Disablement (Injury)100% of weekly income to a maximum of $1500 payable for up to 104 weeks and subject to an excess period of 7 days
Temporary Total Disablement (Sickness)Not Insured
All Insured Persons 
Overseas Medical & Evacuation 
  
Overseas Medical & Evacuation
Excess
Unlimited
Nil
Continuous Worldwide Bed Confinement
Excess
$200 per day for maximum 30 days
Nil
  
Repatriation
Excess
$50,000
Nil
Loss of Deposits, Cancellation & Curtailment Expenses 
Loss of Deposits, Cancellation & Curtailment Expenses
(any one Insured Person - any one claim or series of claims arising out of the one event):
Excess
Unlimited


Nil
Baggage, Business Property and Money/Travel Documents 
Baggage I Business Property-equipment
Limit any one item
Excess

$50,000

Nil (for value <=$20,000), $1,000 (for value >$ 20,000)

Baggage / Business Property-personal baggage Limit any one item
Excess

$ 50,000
Nil (for value <=$ 20,000), $1,000 (for value >$ 20,000)

Electronic Equipment (Including Cameras) Limit any one item
Excess
$50,000 $500 (for value <=$10,000 ), $1,000 (for value >$10,000)
Personal Money / Travel Documents
Excess
$5,000
Nil
Deprivation of Baggage
Excess
$5,000
Nil
Rental Vehicle Excess 
Rental Vehicle Excess
Excess
$20,000
Nil
Missed Transport Connection & Overbooked Flights 
Missed Transport Connection
Excess
$20,000
Nil
Overbooked Flights
Excess
$20,000
Nil
Personal Liability & Identity Theft 
Personal Liability
Excess
$10,000,000
Nil
Identity Theft
Excess
$20,000
Nil
Political Unrest & Natural Disaster Evacuation 
Political Unrest & Natural Disaster Evacuation
Excess
$100,000
Nil

* The summary is a general description only. Each category is subject to various conditions, limitations and exclusions as well as the overriding terms, conditions, exclusions and endorsements of the Policy. Further detail and clarification can be obtained from the Insurance Office in the first instance at Insurance.MQ@mq.edu.au.
If there is a group of people traveling together, the aggregate limit may need to be increased. Please talk to insurance office to assess the risks and adequacy of aggregate limit.

General Exclusions

Some general exclusion from the policy is:

  1. Results from an Insured Person engaging in or taking part in:
    1. flying in an aircraft or aerial device other than as a passenger in an aircraft licensed to carry passengers; or
    2. Training for or participating in professional sport of any kind.
  2. Results from any intentional self-injury or attempt at same, suicide or any illegal or criminal act committed by you or an Insured Person.
  3. Results from war (whether war be declared or not), invasion or civil war.
  4. Is or results from infection with Human Immunodeficiency Virus (HIV) or any variance including Acquired Immune Deficiency Syndrome (AIDS) and AIDS Related Complex (ARC) unless as a result of an accident or a medical procedure.
  5. Medical expenses arising from pre-existing conditions

For travelling to traveller’s own country of residency, there are limited cover, please consult with insurance office before commencing the trip.

Motor Vehicle Hire
A traveller who hires a vehicle should be aware that the University’s Travel Insurance does not cover the costs of repairs to the hired vehicle or the cost of repairs to other property or claims for injury to other road users.

Insurance only covers the insurance excess payable on a claim, up to $20,000.

It is therefore essential to make sure the hired vehicle is fully insured. Otherwise a traveller could be personally liable for damages.

Pre-existing medical condition
Travellers with a pre-existing medical condition, who may require specialist medical care or access to specialised treatment, are asked to do the following to ensure their ongoing health whilst on Macquarie University business:

  • Notify the Health and Safety Team of any pre-existing medical condition that may require special attention or access to specialised medical treatment during travel.
  • Provide a letter from your treating doctor, which confirms your fitness to travel to the Health & Safety Team.

The business travel policy excludes medical , evacuation, additional expenses and personal accident and sickness expenses which are incurred as a result of a Pre-Existing Condition.
Coverage will not be provided where:

  • a journey is undertaken by the traveller against the advice of a Doctor or Dentist; or
  • when the traveller is unfit to travel; or
  • for the purpose of the traveller seeking medical attention for a Pre-Existing Condition; or
  • expenses are incurred for any medication or ongoing treatment for a Pre-Existing Condition which the traveller has been advised to continue by their Doctor during travel; or

expenses incurred directly or indirectly in relation to a traveller’s terminal condition which was diagnosed by a Doctor prior to the journey commencing.

Please note that, under Personal Accident & Sickness (lump sum and weekly benefits), benefits which are directly or indirectly related to a Pre-existing Condition ARE excluded.

A pre-existing condition means:
(a) any physical defect, condition, illness or disease for which treatment, medication or advice (including advice for treatment) has been received or prescribed by a Doctor or dentist in the 12 months immediately prior to the Covered Person’s journey; or
(b) a condition, the manifestation of symptoms of which a reasonable person in the circumstances would be expected to be aware at the time of booking their journey.

By virtue of the above Insurers usually consider an existing medical condition to include:

  • a medical or dental condition that is currently being, or has been investigated, or treated by a health professional
  • any condition for which a person takes prescribed medicine
  • any condition for which a person has had surgery
  • pregnancy.

Travel to risky or sanctioned countries

If you wish to travel to any destination nominated as a Level 3 or 4 risk (‘reconsider your need to travel’ and ‘do not travel’, respectively) or above (as defined by the Department of Foreign Affairs and Trade (DFAT), you are only permitted to do so after having obtained the permission of the Chief Operating Officer and Deputy Vice-Chancellor. Travelling to areas against DFAT advice or to sanctioned countries (e.g Iran, Cuba, etc) or geographically unique areas (e.g. Antarctica) is not automatically covered by the University’s travel insurance.  Therefore please contact traveladvice@mq.edu.au for advice prior to booking your travel.

Emergency Assistance Provider

Macquarie University has partnered with International SOS, a leading medical assistance, international healthcare and security assistance company, to provide 24/7 resources for those on university-related international business travel.

International SOS provides resources by phone, online or on the ground to help with any medical, security or logistical concerns.

Download the app
The mobile app provides immediate access to the assistance centre where medical, security or logistical experts are on hand to provide routine advice or support in an emergency. Up-to-date advice and real-time alerts for travel locations are also available. To download the app, follow these steps:

  1. Scan the QR code below and select your mobile.
  2. Select ’Yes’ when you run the app to make it a trusted application.
  3. Enter the Macquarie University membership number (available on the Wiki page).

Picture1
Call or go online

International SOS medical and security specialists are on hand 24 hours a day to answer queries and concerns. The Sydney assistance centre number is +61 2 9372 2468.

There is also an online portal with up-to-date medical and security information.

Use the Macquarie membership number to log into the portal, and register online to receive alerts via email or mobile.

More information

For questions or further assistance, email the Risk and Assurance team at traveladvice@mq.edu.au.

Claim
To claim any personal or University costs or losses incurred which are, eligible for reimbursement under the travel insurance policy, on your return to the University, a Travel Insurance Claim Form has to be completed and submit to the Insurance office. Only one claim form needs to be completed for losses involving both University and personal property, however, the values need be distinguished via an accompanying note to facilitate correct reimbursement to each party.

The Claim Form should spell out clearly what proof of loss/damage the insurer requires to enable speedy settlement of a claim. The required supporting documentations as outlined on the claim form should be submitted along with the claim form. The claim form is then sent to the Insurance Office for lodgement with the insurers.

DIRECTORS AND OFFICERS LIABILITY
Directors and Officers insurance is usually purchased by an organisation on behalf of:

  • the directors and officers; and
  • the organisation itself, for payments legitimately made or reimbursed for a director or officer.

The contract of insurance is usually in two parts:

Part A: Directors and Officers Liability
That part indemnifies the University’s directors and officers:

  • for loss (including legal costs) where they have committed, or are alleged to have committed a ‘wrongful act’ while acting in their capacity as a director or officer of Macquarie University; and
  • cannot, or are not, indemnified by the University.

Part B: Member Reimbursement
It provides indemnity to the University when it is required or is able to indemnify its directors and officers against whom a claim has been made, and the University has so indemnified its directors and officers.

In the context of this insurance, the word ‘officer’ is defined as “any company secretary, and any employee who is concerned in, or takes part in, the management of the University, regardless of the name that is given to their position“.

GENERAL CLINICAL TRIALS
Standard Medical Malpractice excludes personal injury sustained by a person participating in a Clinical Trial. Therefore, the University has to arrange insurance for Clinical trials that have been approved by the University’s Ethics Committee.

Download the Clinical Trials Cover Fact Sheet.

GROUP PERSONAL ACCIDENT INSURANCE
For a number of years, the University has arranged Personal Injury Insurance (PII) for its students.

The scope of the cover is:

“Enrolled students undertake academic activities in relation to a course approved by the University and all other associated activities relating to the approved course which are authorised by the University, including travel but not including daily travel to and from the students’ normal place of study and residence”.

Non–academic activities Associated with the University, such as sporting or other sub-club activities or pursuits sponsored by the University, including travel but not including daily travel to and from the insured person’s normal place of study and residence.

Notes

  • The cover is for accident only, not sickness.
  • Cover is restricted to Australia.
  • Medicare rebatable medical expenses are not covered.

The benefits of this policy are:

  • Non-Medicare rebatable medical expenses (deductible first $50 each and every claim)
  • Capital benefits-death and permanent total disablement
  • Weekly injury benefit
  • Bed care benefit
  • Domestic help benefit
  • Student tutorial benefit
  • HECS and Postgraduate fees
  • Injury assistance benefit (transport)
  • Home modification benefit
  • Out of pocket expenses.

GROUP PERSONAL ACCIDENT INSURANCE FOR VOLUNTEERS
Volunteers are not entitled to Workers Compensation in the event of an injury.

The policy applies while a person is engaged in Volunteer activities organised or authorised by and /or under the control of the University, including direct travel to and from such activities, anywhere in the world.

The benefits are:

  • Capital Benefits
  • Weekly Injury Benefit
  • Domestic Help (non–income earners)
  • Non Medicare rebatable Medical Expense Benefit (deductible first $50 each and every claim).

PROPERTY PROTECTION
Property Protection provides cover for material loss of assets. It extends to claims for loss of revenue, increased cost of working, loss of rental income and additional expenses resulting from interruption or interference with business. Protection is subject to certain terms, exclusions, conditions and limitations.

Property Protection includes the University’s hulls and boats from 1 November 2012, subject to a lower excess of $500. This provides cover for the small number of vessels owned by the University and its controlled entities.

From 31 October 2017, our Property Protection has a $20,000 excess for every claim, with the exception of spoilage losses, equipment in or under water and unmanned aerial vehicles where different excess amounts apply.

Where the University sustains physical loss or damage to property, the loss must be recorded through Risk Online Active Reporting (ROAR). In the case of the loss or destruction of an item, the relevant cost is the replacement cost of the item.  Where the item has been damaged but can be economically repaired, the relevant cost is the repair cost. ROAR can be accessed via the MQ website staff page or go to: http://staff.mq.edu.au/human_resources/health_and_safety/risk_online_active_reporting-roar/

Insurable hazards include:

  • fire (including that caused by or arising from, spontaneous combustion and/or overheating and fermentation);
  • lightning;
  • impact by aircraft and/or aerial devices and/or articles dropped or falling there from;
  • impact by space debris or sonic boom;
  • impact by motor vehicles and mobile equipment (including cranes), water-borne craft or Animals, explosion, implosion, smoke and/or steam, tidal wave, storm, tempest, wind, hail, cyclone, hurricane, typhoon, tornado, rainwater, Flood, water and/or other liquids and/or substances discharged, overflowing and/or leaking from apparatus, appliances, pipes, tanks, sprinkler and/or other systems, or otherwise escaping from intended confines; and
  • the acts of persons taking part in riots or civil commotion or of strikers or locked-out workers or of persons taking part in labour disturbances including malicious persons or the acts of any lawfully constituted authority in connection with the foregoing acts or in connection with any conflagration or other catastrophe, and whether or not any of the foregoing are the result of Earthquake, subterranean fire and/or volcanic eruption.

Download Property Protection Incidents Notification Form

MARINE CARGO INSURANCE
Marine Cargo Insurance provides protection for any losses to the University’s goods and or property in transit including personal belongings of staff recruited to start employment at the University, e.g. household goods and personal effects

MEDICAL MALPRACTICE
Medical Malpractice insurance is a form of Professional Liability (breach of professional duty), but is specifically designed to cover the University and protected persons in the provision of health care.

Download the Medical Malpractice Cover Fact Sheet.

MOTOR FLEET INSURANCE
The University insures its fleet of motor vehicles under Comprehensive Cover.

This provides:

  • Vehicle Cover for costs of repairs to University vehicles (or cost of replacing a vehicle in the event of a theft or total loss), and
  • Third Party Liability Cover to provide the University with cover for legal liability for loss or damage to someone else‘s property arising out of the use of a University vehicle.

In normal circumstances, the policy will cover the liability of any person driving a University vehicle with the consent of the University.

It is important to note that the University’s Motor Fleet does not provide any insurance to persons who use their own vehicles on behalf of the University.

There is an excess of $500 in respect of Motor Fleet Insurance.

PROFESSIONAL LIABILITY

Professional Liability (indemnity) protects the University for legal liability to pay damages as a result of a claim made against the University and/or a protected person arising out of any negligent act, error omission in the conduct of the University’s professional business (breach of professional duty resulting in a financial loss to a ‘client’ of the University).

A professional duty exists particularly in connection to teaching, consulting work and research.

Cover extends to unintentional defamation, infringement of rights of intellectual property and breach of confidentiality.

The range of persons who are ‘protected persons’ under the Professional Liability insurance are the same as those mentioned in the section on public liability (see below).

It should be noted that the University normally will not agree to provide Professional Liability insurance to consultants (including sole traders) who carry on a professional business.

The scope of the cover is worldwide; however, claims brought in North America (i.e. the USA and/or Canada) are excluded.

PUBLIC LIABILITY / PRODUCT LIABILITY

Liability insurance covers legal claims against the University, its affiliates and persons the University has agreed to protect.

The protection provided by a liability policy is essentially twofold:

  • payment of defence costs in the event of legal proceedings against the University, and
  • payment on behalf of the University of a settlement or court verdict.

The insurance industry has devised a number of policies to cater for the various liability risks. The components of the University‘s combined liability protection are outlined below.

Public Liability insurance covers the University’s legal liability to pay compensation in respect of:

  • Personal Injury
  • Damage to third party property

The above must first occur during the protection period and be caused by an event in connection with the University‘s business and/or products sold by the University.

STUDENTS ON OVERSEAS PLACEMENT REQUIRE INSURANCE COVERAGE

Students intending on overseas placement should fill out and submit the questionnaire form available here at least 14 days prior to travel.

3     RELATED DOCUMENTS

Travel Policy
Clinical Trial Cover Fact Sheet
Medical Malpractice Cover Fact Sheet
International Travel Risk Assessment Form
Travel Insurance Claim Form
Personal Accident Insurance Claim Form
Property Protection Incidents Notification Form

4     NOTES

3.1Contact OfficerInsurance Manager
3.2Implementation OfficerDirector of Risk and Assurance
3.3Approval Authority / Authorities

Chief Operating Officer and Deputy Vice-Chancellor

3.4Date Approved11 February 2014
3.5Date of Commencement1 January 2014
3.6Date for ReviewDecember 2016
3.7Documents Superseded by this ScheduleNil
3.8Amendment History

20 December 2017 – update to Corporate Travel Insurance provider from Chubb Insurance Australia Limited to AIG Insurance Limited, update to ‘Summary of travel insurance benefits’ table with respect to excess amounts, and update to ‘Property Protection’ section concerning a new excess amount of $20,000 for every claim.
29 May 2017 - updated Approval Authority from Director of Risk and Assurance to Chief Operating Officer and Deputy Vice-Chancellor.
03 May 2017 - Updated hyperlink for purchasing private travel insurance to https://uni.chubbtravelinsurance.com/macquni   
13 February 2017 - Corrected amount for Repatriation from unlimited to $50,000
8 December 2016 – update to Corporate Travel Insurance provider from ACE Insurance Limited to Chubb Insurance Australia Limited, updated wording concerning Travel Insurance exclusions, and reference to reporting property damage through Risk Online Active Reporting (ROAR)
12 August 2016 – updates to Emergency Assistance Provider information
26 May 2016 – Minor amendment to update wording regarding private travel insurance and amend the excess amounts in the travel insurance table
January 2016 – Minor amendment to add advice for staff to read Product Disclosure Statement before purchasing private travel insurance
November 2015 – updated information to correspond with University’s new provisions and coverage
July 2015 – updated Insurance Manager’s location and changed Approval Authority
January 2015 - added two fact sheets

3.9Policy AuthorisationInsurable Risk Policy
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