The Queensland Local Government Mutual Liability Pool (LGM Queensland) was established in 1994. The scheme’s objective is to assist members control liability insurance costs through implementation of sound risk management practices and by providing Queensland councils a strong collective position when dealing with insurance markets.
LGM Queensland provides a more secure means for councils to manage their exposure to insurance markets. A scheme priority is to insulate members from the extremes of a notoriously volatile liability insurance market. The success of this strategy was evident during the public liability insurance crisis where members were protected from the depth and duration of impacts felt in many sectors. LGM Queensland has been able to maintain relative cost stability for members enabling more reliable budgeting and financial management.
LGM provides members with $400 million in public liability and $300 million in professional indemnity cover. This is well in excess of the minimum levels of cover prescribed by the Queensland Local Government Act. Members also receive cover for councillors and officers liability, employment practices liability and casual hirers of council facilities. LGM arranges for members to have access to an optional effluent discharge cover.
Based on actual claim costs since the scheme’s inception it is estimated that Queensland councils would have paid an additional $50 million in premiums had they been arranging insurance on an annual basis through the traditional insurance market.
http://www.jlta.com.au/RSQNT/lgm.aspx
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