Section 7 — Risk Management – Insurance


Risk Management Service

Risk Management Service (RMS) is a service department of the South Pacific Division established to assist the Church manage risks and take advantage of opportunities. This includes administering the church’s insurance program. It is important to note that is not an insurance company or an insurance agent or broker, but a service.

Local Churches are able to access RMS for all their insurance requirements including:

•    Cash
•    Building and Contents
•    Extra Risks
•    Public Liability
•    Personal Accident
•    Worker’s Compensation

Some of these covers are briefly explained below, and the information regarding them was correct at the time of printing (March 2015).

Further up-to-date information and forms about these covers are available by contacting RMS:

Risk Management Service
Address: 148 Fox Valley Road (Locked Bag 2014), Wahroonga NSW 2076
Phone: (02) 9847 3375
Email: info@rms.org.au
Web: www.rms.org.au

Cash in Transit

Cash in Transit cover protects against the loss of cash and negotiable instruments under the care of an authorised employee or responsible officer in specified situations (most of which involve the transit of cash from one place to another). It only covers property of the church, not cash held in trust or belonging to volunteers. All NNSW Local Church congregations automatically have Cash in Transit cover under the Conference’s policy.

Important note: Cash in Transit cover does not cover cash kept in the premises of any local church. If your local church keeps cash in a safe on their premises, Cash in Safe cover is required.

Church Treasury teams have two business days after collection to ensure that cash is deposited in the bank. Therefore, all NNSW Local Church Congregations must deposit their Sabbath tithes and offerings in the bank by the close of business on Tuesday to ensure cover (Wednesday if the Monday is a public holiday). The cover allows for an additional two business days under extraordinary circumstances.


Situations Cash Covered
Cash in Transit cover covers the loss of cash under the control of an authorised employee or responsible officer in the following situation:

•    For cash collected at churches and events sponsored by churches – From the time it is received by a responsible officer, in transit between place of collection and private dwelling of the responsible officer, whilst there, and until deposited in the bank or post office by the second business day after collection. If under extraordinary circumstances deposit is not possible by the second business day after collection, a further two days coverage may be granted at the private dwelling of the responsible officer.

PROVIDED THAT when cash is at the private dwelling of the responsible officer it is securely kept inside the dwelling.

Cash in Transit cover does not apply to:

•    Any criminal act by an employee or responsible officer of the church organisation.
•    Any consequence of war, invasion, act of foreign enemy, hostilities (whether war is declared or not), civil war, rebellion, revolution, insurrection, or military or usurped power.
•    Cash or negotiable instruments belonging to or held in trust for any other organisation or person including employees and volunteers.
•    Cash left unattended in a motor vehicle unless it is locked out of sight in the boot of the vehicle for a period of time not exceeding four hours. •    Cash posted in the mail.
•    An incident where the total loss otherwise covered by the Cash in Transit cover exceeds AUD$10,000 and the cash was not under the control of at least two responsible persons.

Precautions to Reduce Loss of Cash
The following precautions can be made to reduce the loss of cash in specified situations:

•    Where practicable, bank cash on the day it is received
•    Where possible vary the:
> Personnel responsible for carrying cash
> Times cash is carried
> Methods of carrying cash.
•    Carriage of cash, wherever possible, should be undertaken by two responsible persons. Where a large amount of cash ($10,000 or more) is carried, it is a requirement that two responsible persons be involved.


In Event of Loss

In the event that cash covered by the Cash in Transit cover is stolen or lost, or an incident occurs that is likely to cause loss, you should follow the steps outlined below:


1.    Immediately notify RMS of the incident providing all available particulars of the loss.

IMPORTANT: Failure to notify RMS within four weeks of the happening of any event giving rise to a loss shall provide sufficient reason for RMS to refuse payment under the Cash in Transit cover.

2.    Take all reasonable precautions to prevent further loss.

3.    Immediately notify the police of any criminal activity and fully cooperate with any investigation including taking all reasonable steps to recover the cash. RMS will not process your loss until this has been attended to.

4.    Complete a “Loss Notification Form” (available from RMS) and attach records (such as receipts, petty cash records, banking slips, sales sheets and other financial documents) that substantiate the amount of cash stolen or lost. If you are unsure how to substantiate the amount of the loss please contact RMS to ask for assistance.

5.    Send the completed Loss Notification Form and attachments to either your Conference, Union, Division or Institution Office for countersigning and ask the office to forward it to RMS.

Information extracts taken from the Cash in Transit factsheet. For further information, contact RMS.


Cash in Safe

Cash in Safe cover protects again the loss of cash and negotiable instruments (negotiable cheques and postage stamps) kept in the church’s premises subject to specified terms and conditions. It only covers property of the church, not cash held in trust or belonging to volunteers.

Churches do not automatically have Cash in Safe cover. To gain cover, the Church must apply for cover using the application form from RMS. RMS will only reimburse a loss under Cash in Safe cover if the church organisation has Cash in Safe cover listed on a RMS Certificate of cover that is current and in force at the time a loss occurs.

Types of Losses Covered
Cash in Safe covers loss of cash and negotiable instruments from the premises of a church organisation that result from one or more of the following events:

1.    Theft consequent upon actual forcible and violent entry of the safe or strongroom.

2.    Theft consequent upon use of the safe or strongroom keys by an unauthorised person who has obtained the keys by theft provided that the theft and unauthorised use of the keys can be proven.

3.    Theft consequent upon the removal of the safe from the premises.

4.    Theft from the church organisation’s premises during regular business or working hours provided that the theft can be proven and the cash and negotiable instruments are under the control of a responsible and authorised person at all times.

5.    Fire.

Cash in Safe cover does not apply to:

1.    Any criminal act by an employee or office bearer of the church organisation.

2.    Any consequence of war, invasion, act of foreign enemy, hostilities (whether war is declared or not), civil war, rebellion, revolution, insurrection, or military or usurped power.

3.    Cash or negotiable instruments belonging to or held in trust for any other organisation or person including employees and volunteers.

4.    Losses where the safe and/or strongroom keys are left unattended on the church organisation premises except for spare keys securely locked in the safe or strongroom to which such keys apply.

5.    Cash and/or negotiable instruments left unattended on the church organisation premises other than in a locked safe or strong room designed for the protection of cash.

Note: Filing cabinets, cupboards, cash drawers and tins, tithe boxes or similar containers do not qualify as cash safes and money left unattended in these is not covered by the Cash in Safe cover.

Cost of Cover
As of March 2015, the cost of Cash in Safe cover is 1.75 per cent of the amount of cover provided to the church organisation (plus GST). To illustrate, the cost of $5,000 of cover would be calculated as follows: $5,000 of cover x 1.75 per cent = cost of $87.50 per annum (plus GST). To confirm prices, contact RMS.


In Event of Loss
In the event that cash or negotiable instruments covered by the Cash in Safe cover is stolen or destroyed or an incident occurs that is likely to cause loss, you should follow the steps outlined below:

1.    Immediately notify RMS of the incident providing all available particulars of the loss.
IMPORTANT: Failure to notify RMS within four weeks of the happening of any event giving rise to a loss shall provide sufficient reason for RMS to refuse payment under the Cash in Safe cover.

2.    Take all reasonable precautions to prevent further loss.

3.    Immediately notify the police of any criminal activity and fully cooperate with any investigation including taking all reasonable steps to recover the cash. RMS will not process your loss until this has been attended to.

4.    Complete a “Loss Notification Form” (available from RMS). Attach:
> Records (such as receipts, petty cash records, banking slips, sales sheets and other financial documents) that substantiate the amount of cash stolen or lost. If you are unsure how to substantiate the amount of the loss please contact RMS to ask for assistance.
> Documents and information that prove the cause of the loss
> In circumstances where the safe or strongroom has been forcibly and violently entered provide photos showing the damage (where possible).

5.    Send the completed Loss Notification Form and attachments to either your Conference, Union, Division or Institution Office for countersigning and ask the office to forward it to RMS. Information extracts taken from the Cash in Safe factsheet. For further information, contact RMS.


Extra Risks

Extra Risks cover responds when equipment is accidently damaged or lost or stolen when taken outside of a secure building or offsite to another location. The regular contents cover does not cover the church against these two risks. If your church has equipment that is moved around or taken offsite regularly then you should consider Extra Risks cover. It is the local church churches responsibility to organise Extra Risks cover as needed.

Extra Risks cover can be arranged for almost any item of equipment owned by a church organisation. It can also be arranged for non-owned items of equipment that the church organisation borrows or hires.

Types of Cover
There are three types of extra risk cover available. You can mix and match to purchase the protection required.

• Blanket Cover
> Provides Extra Risks cover without the need to specifically identify the actual items of equipment covered
> Only covers church equipment – cannot be used to cover non-church equipment
> It cannot be used to cover computers

• Specific Cover
> Applies to a specific item of equipment only

• Temporary Cover
> Blanket or Specific cover for a specified time

There are some exclusions to the cover – please contact RMS for further information.

Cost of Cover
The cost of Extra Risks cover depends on the type of cover purchased as outlined in the following table:

This information is correct at the time of printing (March 2015). Contact RMS to confirm prices.

In Event of Loss
In the event that equipment covered by Extra Risks cover is damaged or lost or an incident occurs that is likely to cause loss, you should follow the steps outlined below:

1.    Immediately notify RMS of the incident providing all available particulars of the loss.
IMPORTANT: Failure to notify RMS within four weeks of the happening of any event giving rise to a loss shall provide sufficient reason for RMS to refuse payment under the Extra Risks cover.

2.    Take all reasonable precautions to prevent further loss.

3.    Immediately notify the police of any criminal activity and fully cooperate with any investigation including taking all reasonable steps to recover the cash. RMS will not process your loss until this has been attended to.

4.    Do not dispose of any damaged equipment until RMS advises that it is no longer required, or our assessment of the loss is complete.

5.    Complete a “Loss Notification Form” (available from RMS). Attach:
> Quotes or invoices to substantiate the cost to reinstate the loss suffered. RMS will not normally pay any loss for which quotes or invoices are not provided. If you anticipate any difficulty in meeting this requirement please contact RMS to ask for assistance. We are happy to pay the reasonable cost of a supplier providing a quote. If in doubt please check with us.
> Photos that show the damage to the equipment (where possible).

6.    Send the completed Loss Notification Form and attachments to either your Conference, Union, Division or Institution Office for countersigning and ask the office to forward it to RMS.

Information extracts taken from the Extra Risks factsheet. For further information, contact RMS.

Personal Accident
Personal Accident cover is for all voluntary workers engaged in any approved activity, authorised and organised by the Seventh-day Adventist Church. It is charged to all churches on a pro rate basis on membership numbers.

This cover does not extended to Pathfinder and Adventurer programs. Specific covers are required for these activities.

For further information, contact RMS.