The ATA’s Federal Executive, at its annual conference held in Melbourne during the recent spring racing carnival, unanimously voted to retain the current Public Liability Insurance underwriter and broker arrangements for the forthcoming 2009-2010 racing season.
The decision was made following a detailed presentation to the Federal Executive by General Manager Jardine Lloyd Thompson, Andrew Nicholl, which included a comprehensive report and statistical analysis on the ATA Public Liability Insurance scheme, presented in a power point presentation format.
The report and analysis clearly demonstrated that the ATA Public Liability Scheme arrangements for racehorse trainers, could not be bettered – either on cost or overall benefits – a claim which was tested out among competitors in the market prior to the start of the current racing season and proven to be substantiated.
The scope of the policies which have been developed over the past 20 years has enabled the ATA Public Liability Scheme to offer trainers the following key features and benefits –
· A Public Liability limit of Indemnity of $20 million.
· A Sub-limit Liability for Care Custody or Control (horses) of $5 million for any one trainer in any one year (the maximum available when tested in the market in both 2007 and 2008).
· There is NO Public Liability excess (compared with similar policies which have an excess of between $1000-$2500), which is particularly important for smaller training businesses and owner trainers.
· The cover protects trainers, their spouses and controlled entities (companies controlled by the trainer), if they are sued by others for bodily injury or property damage.
· As a result of the long relationship with the Insurer, unusual “one-off” situations are often catered for.
· A national policy for all trainers
Australia wide, ensures that the smaller States are not discriminated against in terms of higher premiums and importantly enables higher limits of liability to be negotiated to further protect trainers.
· Over the past eight years, over $5.7million in claims have been paid out and NO trainer has been refused cover.
· Between 2004-2008, the Average Cost of Premiums per trainer has varied as follows (in percentage terms) – 2005 + 2.7%; 2006 – 14.5%; 2007 + 5.3%; 2008 +6.0%. However it should be also recognised that over this period the Limit Of Indemnity has almost doubled, providing an actual slight reduction overall in the cost of premiums.
· For more than 12 years, the Average Cost of Premiums per trainer has been maintained at around $575, which given cost increases in most other areas in racing and service costs to the community in general, is a positive for trainers.
In 2006, the ATA also established a Group Personal Accident Insurance Scheme, free of charge, exclusively for its full members, with an option for members to upgrade the cover by purchasing further optional extra benefits. This cover was upgraded in 2008 with improved options and limited access being granted for non-members.
Following the presentation, and a question and answer session, the Federal Executive unanimously endorsed the continuation of the current arrangements for broking and underwriting the Public Liability Insurance Policy, emphasising the importance of maintaining a National approach and policy which benefitted all trainers Australia wide.
Members should also be aware that that the ATA has a designated resource – Mike Kirby, an experienced specialist in Insurance matters, to deal with and assist members directly with insurance claims and all matters pertaining to insurance, OH&S and associated areas. Mike Kirby is located and contactable at the ATA Federal Office.