Burwood Classic Car and Leisure Fair (NSW)

[RET]

The Fair has been cancelled for this year - I received a letter from the organisers last night citing the cost of public liability insurance as the cause of its demise.

Here is a copy of the letter I have sent to the Sydney Morning Herald on the subject.

Letters to the Editor
Sydney Morning Herald

Dear Sir,

I've just received notification from the Burwood SES that they are unable to proceed with this year's Classic Car and Leisure Fair, an annual event that has been staged in Burwood Park around this time for many years.

The reason for this is one that is being heard often lately in motoring circles and other community groups: the prohibitive cost of public liability insurance.  Even swap meets are reconsidering whether they can continue.

The insurance companies claim the collapse of HIH and the events of September 11 are the cause of the huge increases in Public Liability premiums.  I would have thought the increasing litigiousness of the public should be the primary factor in this sort of cover: I can't see a collection of old Holdens in a park being a serious al Qaeda target.  Even so, the thing that I find especially galling about the closure of the Burwood show is that it is a fundraiser for the SES.  How much money must the SES organisations have saved the various insurance companies in their selfless work during the Christmas bushfire period (and any other time natural disasters strike)?  And yet the premium for one day's public liability at a static car show is $5200.

Every time I turn on the radio I hear some shill promising me compensation for my accident, no charge unless we win.  And it seems to be the community paying either way.  How many other volunteer-run public shows, carnivals and events are going to close their doors before we realize the cost of this ambulance-chasing madness?

Richard Thomas
Secretary
FE-FC Holden Car Club of NSW inc

Where does it end? Are we even going to be able to hold the Nationals next year?

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[RET]

Our club has had PLI with Shannons for many years.  It had been 5mil, but was increased to 10mil last year (a requirement we needed to hire McQuade Park for the Nats).  I rang Shannons today to find out how much it would be this year, and they said that renewals that fall due before the end of March will be honoured, but not from then on as they are getting out of the PLI business completely.

They offered me an alternative: Australian Better Business Insurance.  I'll post a note here when I get a quote from them.  That will be good for a laugh.  Not.

The guy from Shannons went on to say that he's heard of a number of clubs that have decided to fold because they can't afford the insurance and can't operate without it.

WTF is going on?

RET

[air-chief]

Hi Richard

Did Shannons give you the reason as why they no longer wish to continue with PLI ?
It seems funny that they will insure classic cars and give you a discount if your a club member, but are not interested in helping keep the car clubs that support them going.
I always thought Shannons was into the classic car movement.

Regards
air-chief

[RET]

air-chief,

No they didn't - I must be honest I never asked.  But I need to speak to them about something else so I will see if I can find out.

RET

[JB]

Richard,

Did you get a response from Australian Better Business insurance.
If they are no good where to next?  

Jason.

[RET]

As soon as I mentioned that it was for a club, ABBI said they didn't do PLI for sporting groups, clubs etc.  

I was told that the only thing to do was ring around insurance companies on the off-chance they will do it, or (preferably) speak to an insurance broker.

I've done the latter, and am waiting for a response from them.  I'll post the result here.  However, I've been warned to expect a price-tag of at least $1500 - a fair whack more than the $370 we were paying  

I've asked the broker for two prices - one for just the NSW club, and one for a national scheme for all FE-FC Holden Car Clubs of Australia.  To divvy the cost up amongst the groups might turn out to be a cheaper alternative.

I'll keep y'all posted.

RET

[RET]

Hi Richard

Did Shannons give you the reason as why they no longer wish to continue with PLI ?

Turns out it wasn't their decision - Royal and Sun Alliance (who have owned Shannons since Robert's death) have decided they aren't going to do that business any more.

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[RET]

It looks like our club is out of the woods for the time being.  Shannons have relented on their end-March cut-off for PLI renewals, and it is now end-May.  That puts the NSW Club on the happy side of that fence, since our renewal was due in April  :-/

As you may be aware, the whole issue of PLI has been taken up by both Federal and State governments.  They had a summit yesterday to discuss it, and you can find a summary of it here:

• http://www.smh.com.au/articles/2002/03/27/1017206117801.html
• http://www.smh.com.au/articles/2002/03/27/1017206118079.html
• http://www.smh.com.au/articles/2002/03/27/1017206117804.html

And then you can read this: http://www.smh.com.au/articles/2002/03/27/1017206117807.html and it's little wonder why the premiums have gone through the roof  

Apparently the ministers are due to meet again next month, so we wait and hope.  In the meantime, "Let's be careful out there..."

RET