The rising cost of insurance premiums may impact on the continued viability of sport in Australia, the Shadow Minister for Sport, Senator Lundy, said today.
“There has been a massive increase in premiums and a reduction in the number of insurance companies willing to offer public liability insurance,” Senator Lundy said.
“These factors may ultimately force the cancellation of many community-based sporting and recreational activities.
“Public liability insurance has risen by up to 300 per cent in some cases. The collapse of HIH, the massive payments arising from the World Trade Centre attack and increases in litigation are all factors accounting for the rise of premiums.
“Many local councils have been placed in a position of being unable to offer sporting facilities because their insurance companies or brokers are basically dictating who can use these facilities.
“Sport Industry Australia has warned that, unless action is taken immediately, the rise in premiums will result in smaller sports being effectively closed down.
“Even the world’s biggest sporting events – the Olympic Games and the Soccer World Cup – no longer have adequate insurance following September 11.
“There are many examples of rising premiums impacting on sporting competitions. For example, jockeys from Queensland’s Principal Club faced a premium increase from $239 to over $1000; Victorian district cricket clubs were informed that public liability insurance premiums would rise from $245 a year for $10 million cover to over $3500 and in the ACT, the NRMA cancelled compulsory third party insurance for the Summernats street car festival after one claim.
“The Coalition must act immediately to address the rising costs of insurance and Labor will work with the Government to examine ways to ensure that sporting and recreational activities are not cancelled because of the high cost of public liability insurance”, Senator Lundy said.
Media Contact: Simon Tatz on 02 6277 3334 or 0418 488 295
