Members who are currently covered by the Union’s Compensation Insurance are advised that the recent remarket with the insurers occurred. This happens every 3 years and a number of significant changes have occurred.
What happens now
Pay $14.96 per fortnight, $100,000.00 cover for death or terminal illness.
New recruits do not have to fill out the usual workplace voluntary cover application.
What will happen from the first pay in April
Pay $23.23 per fortnight, $100,000.00 cover for death or terminal illness. Cover at this rate till 2022.
Everyone who now joins will be required to fill out the voluntary cover application form.
In recent years, the scheme takes in around $200,000.00 and in the last 2 three year cycles it has cost the insurer $800,000.00 and $600,000.00 respectively. So insurers are not liking the risk of insuring firefighters.
A compounding fact is that the scheme is voluntary. If the scheme was mandatory, or part of Union membership for instance, the cost is significantly lower; $16.38 to be precise and no new members will have to fill out the voluntary cover application.
The Union is considering its position on insurance, we will keep members informed of any further developments/plans.
New Zealand Professional Firefighters Union