Insurance arrangements

The department has invested in commercial insurance to protect its people and assets. This investment was a result of a risk assessment, in line with Treasurer’s Direction M2.1 – Insurance Arrangements.

The department has purchased commercial insurance to cover staff travelling outside Australia on official departmental business. It pays an annual risk and pay‑down premium to the Northern Territory Public Service Workers Compensation Scheme.

In 2018‑19, the department re‑evaluated its previous investment in motor vehicle insurance and, based on a risk assessment, made the decision to cease its motor vehicle insurance policy.

Table 4.3 Workers compensation summary

Data is from WHS002 report derived from the BOXI‑HR system, Gallagher Bassett and settlements.

¹Increase in 2018‑19 WHS incidents without claim status includes increased hazard reporting.
² Reported WHS incidents include hazard reporting.

Mitigation strategies for the workers compensation insurable risk category include:

• training and support for managers to build capability in dealing with employee safety and wellbeing
• increased awareness of the benefit of hazard and near‑miss reporting to develop a proactive approach to WHS
• an early intervention program to immediately manage low‑impact injuries.

The department’s assets are principally land, buildings, vehicles, plant and equipment, requiring active management to prevent damage, losses and/or theft.

Table 4.4 Property and assets repair cost summary

¹ Data obtained from BOXI Accident Damage Report

The range of mitigation strategies for this category of insurable risk include:

• a risk management framework to identify, manage and mitigate risks to property, assets and vehicles with applicable insurance if determined through the risk process
• policies and procedures related to major assets and portable and attractive assets to ensure accountability and custodianship
• vehicle management policy and procedures for the vehicle fleet
• a whole-of-department emergency management function
• emergency procedures, reviewed after all emergency events to ensure best practice
• access control to buildings and property during operating hours.

The department operates with an enterprise approach to risk management. Strategies are set under corporate planning processes. Risks to achieving strategy objectives are managed, measured and reported.

The department is developing its risk management awareness and capabilities to build a risk‑aware culture.

In September 2018, a two‑day facilitated risk workshop was conducted with executive management and divisional managers to review possible risks to delivery of the department’s strategic plan. The resulting strategic risk register is reviewed at BoM meetings.

In 2019, facilitated business risk workshops were conducted with Executive Directors and their management teams. The workshops conducted risk assessments on divisional business plans resulting in divisional business risk registers.

These workshops used the department’s established risk management plan and policy. The department has started a review of its plan and policy against the recently updated Australian Standard on Risk Management (AZ/NZ 31000:2018).

An indemnity is an agreement that provides an assurance against the consequences of negligence or a breach of duty of care. Indemnities can be issued in place of buying commercial insurance. During 2018‑19, no parties called on the NT Government to indemnify against loss or damage arising from a contract under which the department provided an indemnity. The following mitigation strategies and processes were in place to offset this category of insurable risk.

• Review of contracts against the Treasurer’s Direction G2.5 Guarantees and Indemnities.
• Internal guidelines and checklists to assist staff to determine the suitability of entering into funding agreements and contracts containing indemnity clauses.
• Legal review of all contracts containing indemnity clauses.
• A risk assessment of any indemnity provisions relied on by the department.

The department operates with an enterprise approach to risk management. Strategies are set under corporate planning processes. Risks to achieving strategy objectives are managed, measured and reported.

The department is developing its risk management awareness and capabilities to build a risk‑aware culture.

In September 2018, a two‑day facilitated risk workshop was conducted with executive management and divisional managers to review possible risks to delivery of the department’s strategic plan. The resulting strategic risk register is reviewed at BoM meetings.

In 2019, facilitated business risk workshops were conducted with Executive Directors and their management teams. The workshops conducted risk assessments on divisional business plans resulting in divisional business risk registers.

These workshops used the department’s established risk management plan and policy. The department has started a review of its plan and policy against the recently updated Australian Standard on Risk Management (AZ/NZ 31000:2018).