Road maintenance is a routine part of council life. But when things go wrong, potholes, car accidents and property damage can trigger costly claims.
The good news? There’s insurance cover to help your council stay protected.
Read on to learn more about Road Management Council Contracts – and what it means for your council.
The line between roads and responsibilities
Every day, councils across NSW play a critical role in maintaining the state’s busiest roads.
Some of these roads are council-owned, while others fall under the responsibility of Transport for NSW (TfNSW), with councils carrying out maintenance on behalf of the state.
Consider this scenario: a driver hits a pothole, loses control and crashes into a tree, resulting in a fatal accident.
If this happens on a TfNSW road that is maintained by a council, which insurance responds to the claim?
Understanding RMCCs and why they matter
A Road Management Council Contract (RMCC) is a contract that allows councils to maintain state roads on behalf of TfNSW.
Included in this contract – unless otherwise specified – is cover for councils against all third-party claims relating to personal injury or property damage under TfNSW’s .
But to benefit from this protection, councils must be proactive and adhere to the operational and notification requirements set out in the RMCC.
What your council needs to do
Dealing with these types of claims is more straightforward than you think. Here are the five steps to follow:
- First, know your contract
Before signing an RMCC, make sure you have a full copy of the TfNSW policy document for the project – and that you understand what it . Then, establish a clear process with TfNSW for handling claims to ensure smooth legal and insurance management should the need arise.
- Keep accurate records
Document all roadwork, including work orders and maintenance logs. If an incident occurs, having proper records is critical to prove compliance. Also, set up a database or trigger system to track all RMCC agreements.
- Act quickly in emergencies
In the event of an incident, take immediate action to prevent further harm or damage where necessary – without compromising TfNSW’s position.
- Notify the right parties on time
When your council receives a third-party claim, check that the incident occurred on a state road covered by an RMCC. Once that is confirmed, you need to:
- Notify TfNSW immediately, providing full details within 24 hours
- Inform Statewide Mutual that a claim is being processed under the RMCC
- Avoid admissions and payments
Through the entire process, you must refrain from admitting liability or making any payments related to the claim without the approval of the insurer or TfNSW.
By understanding your RMCC and following these procedures, your council can confidently manage state roads.
Need help to understand your RMCC better – or more guidance on risk management? Get in touch with your Account Manager today.