06 Aug 2012
This weekly update is being distributed throughout the Diocese and uploaded to our website () to keep people informed on matters of insurance, repairs, and building works
Business Interruption Insurance Claims
I have been employed by CPT to help work through some of the insurance issues concerning the Business Interruption Insurance. I have also been involved in the financial analysis of the 2011 and 2012 insurance premiums.
The Business Interruption Insurance cover in place across the Diocese at 4 September 2010 was $1 million per event. BI claims are linked with the “damage” sustained to the insured property used to conduct the “business” activity that has been interrupted.
BI covers Increase in Cost of Working (ICOW), being any additional costs incurred for the sole purpose of avoiding a reduction in income that would have occurred in consequence of the damage to property sustained for the indemnity period. These additional costs will be reduced by any costs saved by consequence of the damage.
An example would be any reduction in rent to continue business would be taken off the additional cost incurred to run the business in new premises.
The indemnity period under our insurance begins at the time of the damage and ends when the business or activity has returned to normal level, but does not extend beyond 24 months. Therefore those parishes with BI Claims from the first “event” on September 4th 2010 will complete their indemnity period on September 4th this year. Unfortunately, that is in only 5 weeks time.
We are currently negotiating BI claims for 17 parishes together with the Anglican Centre. These claims are being made for the three “events” of September 2010, February 2011 and December 2011.
We have so far settled and received refunds from the Insurer of $30,226 for Sept 2010 and $199,280 for Feb 2011. I am currently working with the loss adjustors to complete four further global claims outstanding for totals of $2767 for Sept 2010, $318,581 for Feb 2011 and $1456 for December 2011.
I have already spoken to a number of the parish treasurers and wardens, and am happy to be contacted if you have concerns regarding the Business Interruption Insurance or the new 2012 premiums charged. I can be contacted by email email@example.com or by phone 03-348-6960.
Hi, my name is Peng, and I have been involved in the processing of contents claims which included coordination with the Property Manager for collecting information from parishes, compiling files, and preparing them for submission to the loss adjusters for assessment.
CPT has been making solid progress and has settled some contents claims with ACS. A number of contents claims have been lodged and some are yet to be lodged with TPA Godfrey (loss adjustors) for assessment. TPA Godfrey has asked for more information, such as proof of loss, intention to replace or repair, replacement and indemnity value or repair cost. CPT has appointed an independent valuer (Basil Roberts) to review the existing contents claims and to lodge claims for the purpose of speeding up the process. (CPT doesn’t have the resources to directly undertake this.) Basil has been in the industry for over 20 years and is a specialist in plant & machinery, and church properties. He will produce a report after reviewing our claims and discussing details with parishes.
For vicarages claims, they would need to be lodged with EQC for the first $20,000 and any residuals are to be claimed from ACS. Parishes would normally be responsible for their own contents claims for personal items.
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