DEFENCE INSURANCE OFFICE POLICY AND PROCEDURES:
CLAIMS REPORTING FOR DAMAGE TO/LOSS OF DEFENCE ESTATE, INFRASTRUCTURE OR ASSETS
23 September 2009
Defence Support Group
1. Reason for this Brief: This brief presents the policy and procedures of the Defence Insurance Office relating to claims reporting for damage to, or loss of Defence estate infrastructure or assets.
2. The Defence Insurance Office
a. The Defence Insurance Office provides management of the Department’s insurance policy arrangements with Comcover. In the event of an insurable loss, Comcover will reimburse the reinstatement and or replacement costs of:
b. Defence owned estate, contents and infrastructure including goods in Defence’s care, custody and control that are insured under the Property, Transit and Business Interruption policies. Cover excludes loss or damage to Specialised Military Equipment (SME’s) except while in the course of transit.
3. Policy coverage includes but is not limited to:
· Fire damage; smoke, water damage
· Storm damage, including wind, flood, water, overflowing of gutters
· Accidental loss or damage
· Theft, attempted theft or burglary of property
· Damage to property while in the course of transit, including loading and unloading
· Loss of Rent or additional increased costs of working or costs incurred to relocate following an Insured event such as those listed above. Temporary accommodation/structures are covered.
4. Cover is subject to the policy terms and conditions and the exclusions listed in the Comcover Insurance Policy.
5. Excesses - any one loss or event:
· Property - $500,000. If loss is over $500,000 the excess reduces to $100k.
· Transit - $5,000 all property including SME. Policy limit $50million.
· Business Interruption - $500,000. If loss is over $500,000 the excess reduces to $100K.
· Defence self insures all losses under the above excess amounts.
· For example:
· A property loss of $400,000 is self insured.
· If a property loss of $1,200,000 is an insurance event, the excess would be $100K and insurance claim would be $1,100,000.
6. Claims reporting
a. A single event resulting in damage. E.g. a fire, explosion or storm.
b. Any single incident of property damage likely to total more than $500,000 must be reported to Defence Insurance Office. Comcover will appoint a Loss Adjustor to assess the damage and quantify the insurable content of the claim.
c. An event of a natural disaster, for example cyclone, flood, or earthquake resulting in widespread damage.
d. Incidents or events likely to result in widespread damage across various Defence regions, with an aggregate damage of more than $500,000 must be reported to Defence Insurance Office. Comcover will appoint a Loss Adjustor to assess the damage and quantify the insurable content of the claim.
e. Further information regarding the lodging of Claims can be found at the Defence Insurance webpage at http://intranet.defence.gov.au/dsg/sites/Insurance/ - and follow the link to “Making a claim”. Alternatively, contact the Defence Insurance Office via email email@example.com.
7. DEMS Processes
a. Notification on DEMS does not constitute the lodging of an Insurance claim.
b. For each event where the property damage is likely to exceed $500,000, an insurance event must be created in DEMS. This function is available in the Work Request Processing module and is available to all users in the Insurance Manager user-group. User groups are managed by the Regional Information Officer.
c. Once an event is created all subsequent work requests relating to this event, whether they be for building or property (including roads) related rectification works or for sub sequential costs (e.g. transportable building hire), should be associated with the event.
d. Reports are available to measure the aggregated cost of an event but these will not automatically initiate the claims process with the Defence Insurance Office. Reports will be used to substantiate claims with Comcover.