Insurance
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Claims for property damage
In situations where a chid in care causes damage to a property, the carer should make the claim against their domestic insurance policy. Where excess is paid, the carers should make the payment, then provide evidence of the payment to their Community Service Organisation (CSO) who will then arrange for the amount to be repaid to the carers through the Victorian Managed Insurance Authority (VMIA). The CSO should provide VMIA with the carer's details so the cheque can be made out to them directly.
Claims for motor vehicle damage
In cases where a child placed in out of home care damages a motor vehicle, the foster carers should contact their CSO who will contact VMIA. This will ensure that any claims will not affect the carer’s excess and future no claims bonus.
Foster carers are advised to disclose to their domestic insurer that they are foster carers and are caring for vulnerable children. Although failure to disclose their special care arrangements may not give the insurer the automatic right to deny a claim or amend the terms of their policy, the insurer’s rights are largely dependent upon the materiality of the alleged non-disclosure. In order to avoid any potential disputes with the insurer about domestic insurance claims, we strongly advise that foster carers should disclose their carer arrangements to their insurer.
If a domestic insurer rejects a claim for damage to a carer’s property caused by a foster child, the claim should then be referred to VMIA.
- Suggestion: carers need to contact their own insurance company and get a letter from insurer stating that they will lose their no claims bonus and their premiums will go up.
- Send this letter together with several quotations to the agency who should then forward it to DHS
- If no success, carer could then contact DHS region and discuss the issue with the team leader who then can perhaps go to the Unit Manager
