ASSOCIATIONS INCORPORATION ACT 1981 - SECT 70
Public liability insurance generally
ASSOCIATIONS INCORPORATION ACT 1981 - SECT 70
Public liability insurance generally
70 Public liability insurance generally
(1) The management committee of an incorporated association must, at least
annually, consider whether there is a need for the incorporated association to
take out public liability insurance.
(2) The management committee must report
its decision about the need for public liability insurance for the association
to the association’s members at the association’s next annual general
meeting.
(3) If the management committee decides there is no need to take out
public liability insurance, the committee must, at the annual general
meeting—
(a) give the association’s members reasons for the committee’s
decision; and
(b) advise the members that the failure to take out public
liability insurance means that the association’s assets would be at risk if
there were a successful claim against the association.
(4) The management
committee must ensure that—
(a) as soon as practicable after a person
applies to become, but before the person becomes, a member of the association,
the person is advised—
(i) whether or not the association has public
liability insurance; and
(ii) if the association has public liability
insurance—the amount of the insurance; and
(b) before a person is elected
or appointed as a member of the association’s management committee, the
person is advised—
(i) whether or not the association has public liability
insurance; and
(ii) if the association has public liability insurance—the
amount of the insurance.
(5) The management committee must ensure that any
person or entity with whom the association may have dealings, and which could
be expected to have an interest in knowing whether or not the association has
public liability insurance, is advised if the association does not have public
liability insurance.
(6) This section is subject to section 70A .
Note—
This section imposes obligations on a management committee but does not impose
any criminal penalties in relation to breaches of those obligations.
