MAAA started more than two months ago to send packages to a number of brokers on the insurance needs of modellers. Few replied most of those that did would not seek a quote for us unless we made them our sole broker. MAAA was wary of this as last year we relied on a single broker and it was a fiasco incorrect insurance and levies to pay big increases.
Our current broker told us our current insurer of public liability would not quote this year as they were no longer writing public liability insurance.
At the close of quotes (after two months of insanity that has seen the MAAA secretary swamped with work) we had only two quotes for public liability.
The first quote was through our current broker. It was with
an unauthorised offshore insurer that has only been in business about a year.
The quote looked attractive but the company based in the
The sole other quote was through QBE insurance and it is very expensive with an excess considerably higher than previous but for $20 million member to member and is pretty rock solid. Last year we paid $45 roughly per member in insurance. This year it is $83 with the excess to individual members remaining at $250 but the MAAA meeting the first $10,000 of any claim. Basically, we are being ripped off.
The MAAA Council realises that we may lose members in accepting this insurance. It would be cheaper and easier to get if we did not insist on the member to member clause but otherwise the insurance is virtually useless without it. Our only significant injury in a more than 30 year history was to a member and the injury was life threatening and disabling. It has taken six years but that claim is now finalised. Without insurance the majority of our clubs on leased land or council properties would be unable to operate.
MAAA fees (other than insurance have remained almost static while insurance (compounded by GST) has skyrocketed. MAAA fee is $25 (plus GST) for administration, club loans etc. Our insurance has gone from $15 to $45 to $83. MAAA has been given 3 months to pay a bill almost $700,000 in total. Fees need to be processed quickly and passed on to MAAA because we dont have $700,000 available to pay up front.
I believe the MAAA fees have been set at $110.50 for seniors and $98.75 for juniors to which must be added AWA fees of $30 Seniors, $20 pensioners and $10 for Juniors. Your club imposes additional fees on top of these.
MAAA will look at carrying a bigger excess in future to try to hold back the insurance rises. So far Government has failed to implement reforms to limit liability and reduce insurance costs. They could take another two years. Government community insurance schemes do not apply to us. They are insuring needlework groups etc but are not supporting sporting groups where any real risk is. Express your anger to the politicians but pay your fees promptly to your club.
Fred Adler
AWA Secretary.