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Service Agreement Information Kit for Funded Organisations

3.20.1 Insurance

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Organisations under the Service Agreement are required to have appropriate insurance for their operations and business risks with one or more of the following:

(i) the Victorian Managed Insurance Authority (see below) or, if the Organisation is a Council within the meaning of the Local Government Act 1989 (Vic), Liability Mutual Insurance; or
(ii) an insurer authorised under the Insurance Act 1973 (Cth)(external link, opens in a new window)
(iii) an insurer approved in writing by the department.

The appropriate insurance coverage must be maintained for the term, and, if the policy is underwritten on a ‘claims made’ basis, the coverage must be further maintained for no less than six years after the completion of the services provided under the Service Agreement.
The department can request an organisation to provide proof of its insurance cover.

Organisations should undertake periodic reviews to make sure their operational and business risks are appropriately insured, particularly in relation to public and products liability and professional indemnity risks.

Victorian Managed Insurance Authority insurance policies

A significant majority of organisations that enter into a departmental Service Agreement are covered under either of two insurance programs arranged and funded by the department:

  • Public Healthcare Insurance Program
  • Community Service Organisations Insurance Program.

The insurer for both of the programs is the Victorian Managed Insurance Authority (VMIA) and details of the insurance cover provided can be viewed on the VMIA website (external link, opens in a new window).

Organisations entering into new Service Agreements with the department will be notified under which VMIA Insurance program that their risks are covered. The coverage will be funded by the department on behalf of the organisation. The VMIA will send confirmation insurance documentation to organisations including relevant certificates of currency. The Service Agreement does not have a clause indicating the range of coverage applicable.

Public health care insurance program

The types of public healthcare services covered include:

  • health service networks
  • public hospitals
  • community health centres
  • ambulance
  • alcohol and drug treatment
  • hospice care
  • palliative care
  • sexual assault centres
  • bush nursing centres.

The insurance program does not cover private for profit medical services, such as private hospitals, day centres, medical clinics and the like.

Community service organisations insurance program

The types of community service organisations (CSO) covered for service provision in Victoria and agreed border locations include:

  • kindergartens
  • youth accommodation
  • family support
  • residential care
  • child protection
  • indigenous organisations
  • disability accommodation support
  • neighbourhood/community houses
  • financial counselling
  • community housing.

The insurance program does not cover private for-profit organisations (unless otherwise agreed by the department), organisations which have an interstate based head office, or other organisations which can access the economic benefits of state based or national group insurance programs, which include:

  • educational institutions
  • local government organisations
  • religious denominational bodies
  • Salvation Army
  • YMCA

Insurance for statutory bodies

Statutory bodies funded under a Service Agreement which are eligible to be insured by VMIA are covered under the department’s corporate insurance program. The relevant bodies are listed as 'Insured' on the department’s certificates of currency.

Consortia insurance arrangements

Departmental insurance programs (including VMIA insurance polices) can be extended to cover all organisations that form part of a consortium funded by the department. The cover is strictly limited to consortium related activities only.

If at least one member of a consortium is an organisation covered under the public healthcare insurance program, then all other members will receive the benefit of the cover under this program. However, if the consortium does not contain an organisation covered under the healthcare insurance program, but contains at least one member covered under the CSO insurance program, then all other members will be covered under the CSO program.

Organisations not covered by departmental insurance programs

Organisations that are not eligible for cover under departmental insurance programs are required to arrange appropriate insurance to:

  • protect physical assets such as buildings and contents against loss and/or damage
  • indemnify the organisation against legal liability for personal injury and/or property damage or other financial loss claims under such policies as:
    • public/products liability
    • professional indemnity
    • directors' and officers' liability.

Some legislation also requires organisations to have certain types of insurance, such as WorkCover insurance (refer to the WorkSafe Victoria website (external link, opens in a new window))

Insurance enquiries

Organisations that are unsure of their eligibility for cover under departmental insurance arrangements should contact their departmental Service Agreement contact for advice, who as necessary will refer the matter to the department's insurance manager. 

Specific enquiries made by organisations on insurance matters should be referred to the VMIA. The VMIA website (external link, opens in a new window) lists names and contact numbers specific to each departmental insurance program.