26 September 2023

Treasury signs up insurance policy

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NSW Treasury has issued a Circular requiring all Government Agencies to be members of the Treasury Managed Fund (TMF) for their insurance requirements.

In the Circular, TC20-05 ‘Mandatory Use of the Treasury Managed Fund (TMF) for All Government Insurance Requirements’, Secretary of the Treasury, Michael Pratt said all Agencies were required to be members of the TMF and take out a minimum level of cover.

“All Government Agencies must be insured in line with the State’s risk appetite, as expressed through the Statement of Cover, inclusive of limits and terms, as a minimum,” Mr Pratt said.

He said mandatory requirements included all Agencies to obtain cover for their insurable assets and liabilities through the TMF; Agencies to be TMF members for their insurance requirements; and Agencies not members of the TMF are required to consult with icare to obtain entry to the TMF for all their insurance requirements.

He said Agencies should consult with icare if there were questions regarding the TMF insurance requirements.

Mr Prattt said Government Agencies seeking exemption from the requirements would need to obtain approval from Treasury.

“If a Government Agency seeks exemption from membership in the TMF, or from taking out cover less than the minimum level provided by the TMF, it will need to demonstrate that their alternative insurance arrangements offer equal or better coverage to that offered by the TMF at a better price,” he said.

The Treasury’s four-page Circular can be accessed at this PS News link.

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