The Australian Competition and Consumer Commission (ACCC) has given the thumbs-up for three major insurers to provide joint public liability insurance to not-for-profit organisations in NSW. The permission comes after many community groups were forced to cancel events or activities following the rise on public liability premiums.

ACCC authorisation was needed because the insurers involved with the pooling – Allianz Australia, QBE and NRMA – are competitors, and failing to get approval could mean a breach of the Trade Practices Act. They now have “conditional authorisation” until the end of 2006.

ACCC Chairman Professor Allan Fels says the commission is seeking comments on its draft decision from the applicants and any other interested parties. He said that while there is “some apprehension”, he believes the right decision has been made.

“While the ACCC is concerned that the arrangement may have a detrimental effect on competition… subject to certain conditions, the arrangement is likely to result in a net public benefit.”