Legislative Assembly for the ACT: 2001 Week 8 Hansard (9 August) . . Page.. 2890..
Canberra Hospital implosion
(Question No 362)
Mr Stanhope asked the Chief Minister, upon notice, on 1 May 2001:
In relation to claims against the Government arising out of the hospital implosion:
(1) Who is the Government's insurer.
(2) What coverage did the Government and its agencies, including Totalcare, have an relation to the implosion.
(3) What premium did the Government pay for this coverage.
(4) Is the Government's insurer denying liability under the policy or policies held by the Government.
(5) What has it cost the Government and its agencies, including Totalcare, in legal expenses to defend the claims made against it by (a) the Bender family and (b) by other persons claiming compensation.
(6) Is any person other than the Government, its agencies and Totalcare being sued for compensation by the Bender family or other claimants and if so, who is the other person(s).
(7) When will the claims against the Government for damages be settled or otherwise completed.
Mr Humphries: The answer to the member's question is as follows:
1) The Government's insurer is HIH Casualty and General Insurance.
2) Subject to the conditions, exclusions and excesses expressed in the policy the coverage of the Government and its agencies, including Totalcare, was in respect to all construction and contracting activities in relation to contracts awarded or managed by ACT Public Works and Services and/or agents of Public Works and Services for third party liability. This includes all sums which the Government and its agencies become legally obligated to pay including immediate medical and/or surgical aid, all expenses incurred with the permission of the insurer incidental to the investigation, negotiation, presentation and/or defence of claims and suits or appeals which are the subject of indemnity under the policy and all expenses awarded against the insured. The limit of this coverage is $10,000,000 for any one occurrence and any one project, unlimited in any one policy period.
Additionally, Totalcare holds Professional Indemnity insurance cover with GIO which indemnifies Totalcare against all sums liable to be paid as a result of a breach of duty by reason of any negligent act, error or omission committed or allegedly committed. The indemnity limit for this coverage is also $10,000,000 for any one occurrence.