Insurances

Local Government Mutual Liability Self Insurance Scheme

Civic Mutual Plus (CMP) is the local government mutual liability self insurance scheme, set up to provide liability insurance to Victorian and Tasmanian councils (and other Authorities).

The CMP scheme commenced operations on 30 September 1993. Its establishment grew from an unstable situation characterised by a diminishing number of insurers and reinsurers prepared to underwrite local government business, premiums which could rise or fall dramatically from year to year and, a cover which was inadequate in times when more and more litigation was being initiated.

In 1993, amendments were made to the Municipal Association Act 1907 directing the Municipal Association of Victoria (MAV) to establish a self-insurance liability scheme to provide public liability and professional indemnity insurance for the benefit of:

• the MAV
• councils
• any other body constituted by Victoria's Local Government Act, 1989 for public or local governing purposes
• any other body which the terms and conditions of the insurance scheme provide may be a member of the scheme, including Tasmanian authorities.

CMP Committee

In establishing the scheme, the MAV also appointed the CMP Committee which is a committee of management and advisory body to the MAV board on insurance, financial and other matters impacting on the scheme.

While the committee is accountable to the MAV board, it has delegated powers to administer the scheme on behalf of members for each insurance year. The committee operates in accordance with a set of rules approved by the MAV. Allan Garcia is the Tasmanian representative.