Migration Alliance Webinar Questions
- When explaining the claims process, it was mentioned that there was an obligation to notify. What is a notification and when should I notify?
Answer – As soon as the insured becomes aware of a situation, fact or circumstance which could give rise to a claim in the future; they have an obligation to notify their insurer. The Insurance Contracts Act [Section 40(3)] provides that if you provide a notification of a circumstances in a policy period but a claim is not made against you until a later policy period, the policy which was in operation when the notification was provided is the policy which applies.
A failure to notify a situation, fact or circumstance which could give rise to a claim in the future is the most common ground on which PI claims are denied by insurers
- How do they calculate the premium for a Professional Indemnity Policy?
Answer –When calculating the cost of a policy there are many factors which influence the premium. including:
- Amount of cover (Cover Limit)
- Estimated annual turnover (This is also known as gross fees)
- Your claims history
- Total number of employees
Location will also impact your price as each state may charge different taxes.
Migration Alliance members benefit from a specially negotiated discount for Migration members off the standard cost of the policy through AIG.
- What was the purpose of the poll at the end of the webinar?
Answer – Firstly, we would like to thank all participants who completed the poll. It gives us valuable insight into what our customers want. We use this information to work with our insurer (AIG) to ensure our offering is up to date with our customers needs.
We will be sure to update you as and when any progress is made.
- Can I increase my level of cover during the policy period?
Answer – Yes, the policy cover limit can be increased at any time throughout the policy period. You can contact support@bizcover.com.au or call 1300 920 863 to speak to a member of our service team. Please note that you will have to pay the difference in premium to make the change.
- What is a reinstatement?
Answer – Your Professional Indemnity policy will have a limit of indemnity which is the maximum amount that can be claimed. So, if you take out cover for $250,000 in any one year, the maximum amount the insurer will pay for any one claim is $250,000. Some policies include an Automatic Reinstatement Clause which allows the Limit of Indemnity to be ‘reinstated’ for new, unrelated claims. The AIG Professional Indemnity policy for RMAs includes an Automatic Reinstatement Clause which allows the Limit of Indemnity to be ‘reinstated’ for new, unrelated claims. This means that if you have a claim or multiple claims during your policy period which has exhausted your cover limit, your initial sum insured limit will be reinstated up to one time to cater for any other claims in the same policy period.
For example, if you purchase a policy with a $250,000 limit of indemnity, the policy provides cover for claims aggregating up to $500,000 during the period of insurance, subject to any one claim being no greater than $250,000.