4WD Clubs News FAQs (frequently-asked questions)

Under the National Vehicle Insurance scheme, TCIS give a rebates for each policy. When this was set up, it provided for $10 to the national and state associations, and $5 to the respective club for every policy. At a general meeting some time ago, the club delegates agreed that the Association should retain their club contributions. The reasons for this included:

• difficulty in establishing a process for the equitable distribution between the clubs.
• Administration costs for TCIS outweigh the rebate amount.
  
• retention by the state association was a good way to keep club subscriptions down.

This helps keep everyone's affiliation fees down.

For clubs affiliated with 4WD NSW&ACT, TCIS offers Directors & Officers Liability and Public Liability insurance cover for $ 8.50 per club member and a minimum of $ 185.00 per club.

Affiliation with 4WD NSW&ACT also provides your club with cover for voluntary workers engaged in nominated 4WD NSW & ACT organised activities.

The ANFWDC liability cover is actually two policies tailored to provide maximum protection for clubs and their executive officers from legal action being brought against them for negligence.

The primary cover is a public and products liability policy, supported by a Directors and Officers cover specifically targeting protection for club officials.

General Liability

The public and products policy, normally referred to as the ‘general’ liability policy protects members and the club from legal action arising from negligence which causes physical injury or damage to property. Most claims we handle fall into this category, examples are; A temporary
shed erected by a club, blowing o­nto and damaging nearby parked car. Loss of income due to a leg injury o­ne member caused to another.

The general liability policy is extended to include ‘member to member liability’, an essential extension, as it treats each club member as if they were insured separately rather than being part of o­ne large collective. The advantage of this extension allows o­ne member to seek compensation from another member whose negligence has caused a loss of some kind. The ability to seek such compensation is dependent o­n the member causing the event being proven negligent.

The general liability is further extended to include, as o­ne of the insured parties, the property owner o­n whose property the club is travelling. The property owner is in fact protected in three ways;

1. Against a claim o­ne of your members may make against them i.e. falling down an unmarked well
2. Against a third party claim naming the property owner, ie their neighbor takes legal action against the land owner for escape of fire arising whilst the club was o­n the property
3. It allows the property owner to seek compensation should he suffer a loss as a result of negligence by the club or it members, i.e. you start a fire which burns down his hay stack.

Finally our general liability has been extended to provide professional indemnity cover for non paid driver training. Normally such activities are specific exclusions from general liability cover.

This policy provides protection against actions for financial compensation other than arising from physical injury or damage to property. Most claims arise from mismanagement of money i.e. shareholders and banks seeking recovery from directors who failed to declare financial situations of business operations etc. Our club officers may face claims for allowing o­n going sexual harassment within a club, failing to manage club members funds etc. Due to the small amounts of funds handled by clubs, and the cost of D&O cover, we have selected a sum insured of $2,000,000 rather than the $20,0000,000 for general liability.

What types of activities are covered?

Our policies provide protection for ‘recreational four wheel driving and other associated activities’ This is deliberately a broad definition and should be viewed as what a reasonable person would deem to be an ‘associated activity‘. Obviously camping, bush walking, photography, club meetings, working bees, film nights, sausage sizzles and the like are covered.

What is actually covered?

Your liability to compensate third parties for losses arising from your negligence as determined in a court of law. In addition all defence costs are covered.

What is not covered?

1. Injury to club members or damage to their property which is NOT caused by the negligence of other club members. Put simply, if a member injures himself or herself, i.e. cuts their own leg with their own chainsaw, there is no claim as no other party was negligent. o­n the other hand, if o­ne member cuts another member’s leg with the same chainsaw, you have a situation, which can turn into a claim.
2. Higher risk sporting activities such as scuba diving, hang gliding, parachuting etc are not covered.
3. Paid driver training
4. Events where the public is charged an admission fee
5. Timed motor events

In most cases our policy can be extended to include events where the public are charged admission and / or timed gymkhanas. Event declarations are available o­n the web, by phoning or by emailing TCIS. Phone 1800 633 745, email tcis@tcis.com.au .

Additional premiums may be charged, many are permitted without further cost.

Any activity, which you feel, may fall outside the definition of ‘associated activity’ should be notified to TCIS as early as you can. A simple phone call should be able to resolve most issues.

In summary, TCIS has a very broad cover for most activities most clubs undertake, if in doubt, give them a call, they will be happy to here from you.

The simple answer is, from an insurance perspective, TCIS doesn’t care whether you have visitors or not, it is NOT an insurance issue.

Two situations may arise which insurance would need to address:

• The visitor is the injured party – the victim.
  In this scenario the visitor has all the rights any other member of the public to take legal action against the club. The fact they were a visitor at the time is irrelevant, if they can prove liability o­n behalf of the club, the club insurer would have to pay. If they can’t no o­ne pays. This situation is further reinforced by the fact your policy extends to include ‘member to member’ liability. Even if a visitor were deemed to be a member at the time of the loss, they would still have rights to take action against other members.
  
• The visitor causes the loss or injury – the villain.
  It is a bit tricky here. If the visitor was acting under direct club control at the time of causing the loss, the club MAY have a case to answer, if it does, the insurer would act to defend the club.

If, o­n the other hand, the visitor was acting outside club control, they would be liable (as they would if they went o­n a private trip) and the club and its insurer would NOT be involved

Example

Visitor wants to light a fire o­n a high fire risk day, they ask the trip leader, he agrees and bush fire results, the club could be liable. If the trip leader refused permission to light the fire but the visitor went ahead anyway o­n the basis the trip leader has no jurisdiction over him (or her), the resultant bush fire would be the liability of the visitor.

In summary, if the club is found liable, your policy will respond, if not you are in the clear. From a visitor perspective, they have no more liability than if they went o­n a private trip and may in fact have some cover under your policy.

So insurance isn’t an issue when it comes to visitors. Just make sure they are recorded o­n your club trip sheets as history suggest most reports of claims we get relate in some way to visitors as they are in unfamiliar environments and perhaps don’t have the connection with the club of its members.

For the purpose of covered by TCIS's public liability insurance, a club trip or activity is an event that is officially endorsed by the club's executive or management committee.

Such trips and activities must be formally recorded such that the record can be readily referenced after the event. It is all about proof that the event was a club trip.

If a trip or activity is not notified to the club at large, and open to members, it is considered by the insurer as a private trip of people who happen to be club members and will not be covered by their policy.

The easiest way for clubs to record such trip and activity announcements is in their magazine and/or general meeting minutes. Just make sure that you can produce evidence of an appropriate notice in the case of a claim.

The Australian National Four Wheel Drive Council sponsors and pay the premiums for our Voluntary Workers Insurance cover.

This insurance is to cover club members, whilst undertaking promotional or community work, against loss of wages as a result of an accident. It also covers the setting up and dismantling of the equipment or site. It is not intended to cover clubs working o­n projects that financially benefit the club o­nly. The club should seek advice from TCIS and arrange their own insurance for such events. Refer to Voluntary Workers Personal Accident Insurance Program for the policy schedule.

To get cover for an event, a declaration form must be submitted to the Association Secretary by email or fax (1800 650 664) at least two weeks before the event. Declarations forms can be downloaded from:

• Voluntary Workers Declaration Form (MS Word version)
• Voluntary Workers Declaration Form (PDF version)

If your club is incorporated in Victoria, then Click Here

For clubs incorporated in other states and the territories contact Ken Brady at TCIS (http://www.tcis.com.au)

If your club is part of another organisation, such as a church fellowship or RSL club, then you might be able to take advantage of the insurance offered by your parent organisation.

If a trip leader is authorised by his club to be suitably experienced, so as to lead a trip, and the trip is advertised in the normal way, then the trip can take place and cover is provided so long as all paperwork, premiums etc. have been attended to.

TCIS have brokered this insurance for the Australian National Four Wheel Drive Council to cover the National Council and its member Associations and clubs.

On your club's certificate of currency you will notice that the insured party is "Australian National Four Wheel Drive Council inc. and associated state bodies and clubs as listed on the master policy"

I do not understand how a claim would be handled if a club was not affiliated at the time of the incident, however, I would expect the underwriters to take advantage of any opportunities to avoid payment of a claim. Therefore, whilst your club is not a financial member of 4WD NSW&ACT you are under risk.