The Local Government Association of South Australia (LGASA) has called for the compulsory insurance levels of councils to be raised dramatically.

Currently the compulsory minimum coverage for SA councils is $50 million, but the association wants this increased to $300 million.

The current level was set 16 years ago and LGASA CEO Wendy Campana says this would no longer cover major disasters such as bushfires and floods.

“It is clear, and reinforced by the catastrophic events unfolding across Australia since January, [that] no matter what the size or asset base of a local authority, the potential to be found liable for a major event is not selective,” she said.

Councils in SA are covered by the LGA Mutual Liability Scheme underwritten by JLT Australia.

Ms Campana says the board of the scheme reviewed the limit two years ago due to the rising cost of claims. It found councils were buying liability limits ranging from $150 million to $400 million.

After this year’s natural disasters, the board agreed the liability limit should be altered to a minimum of $300 million.

insuranceNEWS.com.au contacted the SA Department for State/Local Government Relations about increasing the limit, but did not receive a reply.