NCOSS Community Cover Insurance bulk buying insurance scheme
This important community initiative needs your support to keep it operational. Our funding has finished and now the only income is the commission we receive from Aon Risk Services for every policy sold under NCOSS Community Cover, which is currently not enough to pay expenses.
NCOSS Community Cover was established as a bulk buying insurance scheme with the aim of providing quality policies for cheaper premiums. However for the scheme to work it needs the sector to support it. It has been NCOSS’ experience that while the sector was obviously keen for the project to commence they have not supported its development.
Upon commencement of the program 986 registrations were received from organisations interested in joining the scheme. In addition, over 2,500 organisations have benefited from the program through the subsidised insurance training and personal assistance through the Insurance Information Line. However, after the first two years NCOSS Community Cover has only received 378 applications for quotes.
When registered organisations were asked why they had not obtained quotes, over 50% replied that they were too rushed at renewal and forgot. Therefore NCOSS established the Expiry Reminder Service which, in spite of extensive marketing, has received just 10 requests for reminders.
Some organisations have told NCOSS they have heard the scheme was more expensive than another insurer so they have not obtained a quote. While sometimes NCOSS Community Cover is more expensive than other insurers, other times it is cheaper. Premium prices depend on individual organisations and their activities so organisations will not know how the scheme compares until they obtain a quote.
In addition, the Insurance Program has frequently received calls from organisations stating their NCOSS Community Cover quote was the same as their existing insurance so they are not going to ‘bother’ to change over. This leaves the scheme in a Catch 22 situation.
The way a bulk-purchasing scheme works is the more organisations that join, the stronger our collective bargaining power and the cheaper the prices that can be negotiated. If organisations don’t change over the scheme will not obtain enough power to negotiate cheaper premiums.
In fact nearly all organisations seem to purchase their insurances based on one determinant only and that is price.
It is a waste of time buying insurance just because it is cheap if the policy is full of holes or is using a dodgy insurer and you don’t get your claims paid. Think about it this way, when you buy a television set - you investigate the brand, warranty, projection type, screen size, sound, picture and colour quality –do the same when you purchase insurance! Check the quality of the policy and the insurer as well as price, customer service and any other determinants you feel are important.
NCOSS is not saying you have to purchase the insurance, just show your support by obtaining a quote – if the quality and the price do not equate with your existing cover don’t change; but if they do, then consider the bigger picture.
To obtain a proposal form for a quote:Aon Risk Services
Phone: 1300 363 764 (mention NCOSS)
email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
