The Australian Competition and Consumer Commission (ACCC) has granted conditional authorisation to enable Allianz, QBE, and NRMA Insurance to collectively offer public liability insurance to eligible not-for-profit organisations.

ACCC Chairman Graeme Samuel says the move is aimed at providing struggling not-for-profit groups with more affordable and widely available public liability cover. He acknowledges that some not-for-profit organisations have had difficulty in obtaining public liability insurance “and as a result have had to cancel community events".

Mr Samuel’s fears that the arrangement may have “a detrimental effect on competition” have been outweighed by his belief this is the only way to go. The arrangement is likely to have too many community benefits to refuse.

ACCC authorisation is required for the scheme because the insurers offering the cover are prohibited under the Trade Practices Act from collectively agreeing on principles such as policy pricing.

“The ACCC believes the collective arrangements will go some way toward easing the difficulties in obtaining public liability insurance faced by not-for-profit organisations following events such as the collapse of HIH that have had a significant impact on the insurance industry,” Mr Samuel said.

The ACCC granted conditional interim authorisation to the joint venture public liability product in November 2002. The scheme has been granted conditional authorisation to the arrangements until December 31 2006.