We’ve recently fielded enquiries from members regarding potential contingent liabilities of participation in the mutual.
The Deed enables the board to request members make good on any deficit in the scheme or any contingent liabilities of a Council when exiting.
Given the current financial position, and the scheme’s comprehensive reinsurance program, the need to make such a call is very remote due to:
positive net equity in the Public Liability, Property Mutual, and Crime (Fidelity Guarantee) schemes; and
the result of the recent annual audit confirming that the schemes have sufficient capital reserves to meet all realistic contingent liabilities; reserves that exceed APRA guidelines.
This conservative capital position provides members with the highest level of cover and comfort in any circumstances. However, members should ensure they review the financial statements in the upcoming annual report to satisfy their own audit requirements.