Financial win for Australian cricket clubs with national club insurance scheme

Cricket Australia today announced details of a national club insurance scheme that will slash insurance costs for cricket clubs across Australia.

In one of the most significant developments for Australian cricket, the scheme is set to offer more affordable and appropriate insurance cover for clubs, associations, players, officials, administrators and volunteers.

While cost savings would vary for Australia's 5000 clubs, many could see their insurance costs cut by half.

Cricket Australia Chief Executive Officer James Sutherland said establishing a national club insurance scheme was critical as clubs faced an uncertain and complex insurance market with rising costs.

"Soaring public liability and related insurance costs are one of the major issues facing club cricket throughout the nation," Mr Sutherland said.

"Some clubs cannot get access to any insurance, others struggle to pay premiums and many are under-insured, often without knowing it.

"By bringing together all clubs, we can achieve greater purchasing power and size economies to provide them with more affordable and appropriate insurance cover.

"Cricket Australia and the state and territory cricket associations realised that we had to act quickly to avoid a looming crisis as a result of rising insurance costs.

"The national scheme has come about by the collective efforts of the national and state administrative bodies and will help cricket better manage issues of liability, duty of care and risk management, and create a safer environment for the game.

"The national scheme will take effect from 15 August 2003. From that date, club administrators will be able to ring the dedicated 1800 telephone number that will be set up to handle all enquiries and take advantage of the potential savings for their club."

Indicative calculations suggest that clubs could have faced collective premiums of $5.5 million if they continued their traditional approach of individually seeking coverage next season.

However, a collective national approach could provide better cover at a cost of around $2 million.

Clubs in Queensland will continue to have their insurance premiums covered by Queensland Cricket. Clubs in other states and territories will be able to learn their cost of participating in the scheme during the course of the next week.

It is expected that through the scheme, an accurate risk profile and database for cricket specific injuries can be established which will help to control and set accurate premiums.

The insurance scheme will provide clubs with cover for personal accident insurance, public/products liability and association/management liability.

Other benefits include easy-to-follow risk management practices, a safer participation environment for players and, in time, less administrative work for clubs.

It also incorporates an education process to help clubs reduce risk, and in turn keep pressure off premiums by reducing the number of claims made.

Federal Minister for the Arts and Sport, the Honourable Mr Rod Kemp, congratulated Australian cricket on its national club insurance scheme.

"Insurance is a major issue confronting Australian sport," said Mr Kemp.

"Solutions to the problem require a team effort and I congratulate Cricket Australia on its national initiative."

Jardine Lloyd Thompson was appointed as the broker for the insurance scheme following a tender process.

The company will manage all queries, complaints and claims on a national basis, reducing the workload of volunteers and administrators at clubs.

The national club insurance scheme is one of several Australian cricket initiatives to make the game more appealing for players, coaches, parents, officials and administrators.

Last year, Cricket Australia released its junior cricket policy which focused on safety guidelines and strategies to prevent injuries, particularly to children.

The safety guidelines include recommendations on the use of helmets, appropriate field placements, dealing with heat and humidity, and suggested workload levels for fast bowlers.

With the safety guidelines implemented and appropriate risk management practices in place, cricket clubs are better equipped to prevent injuries and, if they do occur, clubs in the national scheme will have adequate insurance in place to compensate victims.

The national club insurance scheme begins next Friday (15 August), when a special telephone number and website will operate to handle all enquiries.

Full details of the dedicated telephone number and website will be issued in due course