Unimutual Protection – Target Market Determination

Unimutual Protection – Target Market Determination

October 2021

Product Disclosure Statement: Unimutual Protections Product Disclosure statement and Protection Wording 2021 –2022 Protection Year
Issued Date: 01st November 2021
Issuer: Unimutual Limited ABN: 45 106 564 372 (Unimutual)
AFSL Number: 241142
Effective: 1st November 2021

What is a Target Market Determination?

A Target Market Determination (TMD) describes the type of client each Unimutual Protection is appropriate for (target market), and any conditions around how the product can be distributed to clients and describes how the Protection meets the client’s needs. The TMD also describes the events and circumstances that trigger when we may need to review the TMD.
A TMD does not replace the terms and conditions, nor the disclosures made, in the Unimutual Protections Product Disclosure Statement (PDS). Refer to the PDS before deciding to purchase the Protection offered.

Consumers within our Target Market

Unimutual operates as a discretionary mutual for its Members. Unimutual permits an eligible client membership to Unimutual which make them eligible to purchase the Unimutual Protection(s).
Unimutual offers membership to potential clients who meet the following criteria;

  • Universities, other educational or research institutions or entities associated with education or research.

A potential client must meet this selection criteria to be eligible for membership to Unimutual.
A product distribution condition is that potential clients must be accepted as a Member of Unimutual. Upon acceptance, any Member can purchase the Protection(s) by way of a contribution. Unimutual Members are classified as wholesale clients by definition when they have more than 20 employees. The Unimutual Protection(s) are designed and tailored to consider the specific needs of the Members.
Clients NOT within Unimutual’s target market and not eligible for membership would be any business or clients not operating in the capacity of universities, educational facilities, research institutions and other allied organisations associated with higher education or research in Australia and New Zealand.

Likely needs, objectives and financial situations

Likely needs and objectives Unimutual’s Members have an exposure to the risk of property and liability claims for the assets held by the universities, educational facilities, research institutions and other allied organisations associated with education or research in Australia and any global assets and joint ventures abroad.  Unimutual Members have a need to protect their assets against risk exposures which in turn protects their balance sheet.
Likely financial situation Members of Unimutual a have unique risks and Protection and exposures.  Unimutual’s Protection(s) provide an affordable alternative by way of contribution that provides a broad range of Protection that meets their risk exposures with affordable retention limits and meaningful limits of Protection.

Protections Offered to Members

Unimutual Protection offers 6 classes of discretionary Protection.

The classes of Protection are as follows:

  1.  Property Protection
  2. Combined Liability Protections – optional inclusions Malpractice and General Clinical Trials.
  3. Cyber Protection
  4. Environmental Liability
  5. Active Assailant
  6. Terrorism

Details of the Protection and the applicable terms, exclusions, condition and limitations are set out in the PDS and each Member’s Schedule of Protection.

1.  Property Protection

Property Protection provides Members with the right to claim Protection on behalf of the Member, an affiliate or a protected person for material loss of assets being real property, including buildings, plant, machinery, stock and merchandise and personal property.
Property Protection also extends to claims for Protection for loss of revenue, increased cost of working, loss of rental income and additional expense resulting from interruption or interference to the business during the period of Protection.

2.  Combined Liability Protection

There are four liability Protections. Members will only be entitled to claim for the liability Protections specified on their Schedule of Protection:

2.1. General and Products Liability Protection

General and Products Liability Protection provides Members with the right to claim Protection on behalf of the Member, an affiliate or a protected person for liabilities arising from personal injury (including death), other injury and property damage caused by a protected event during the Protection period.
The Protection is within granted limits and in connection with the Member’s business or from products manufactured, sold or supplied by the Member.

2.2.  Professional Liability Protection

Professional Liability Protection provides Members with the right to claim Protection on behalf of the Member, an affiliate or a protected person for their legal liability to pay damages as a result of any claim or claims first made against them during the Protection period and arising out of any civil liability in relation to the Member’s professional Services.

2.3.  Malpractice Protection

Malpractice Protection provides Members with the right to claim Protection on behalf of the Member, an affiliate or a protected person for their legal liability to pay damages as a result of any claim or claims first made against them during the Protection period or within 30 days thereafter for bodily injury (including death) arising out of any act, error or omission in relation to the provision of medical and/or veterinary services.

2.4.  Clinical Trials Protection

Clinical Trials Protection provides Members with the right to claim Protection for amounts which the Member is liable to pay as damages or compensation and claimants costs and expenses for any claim first made during the Protection period, and notified to us in the Protection period or within 30 days after its expiry, for bodily injury to any research subject arising from an occurrence in respect of any clinical trial undertaken by the Member or any affiliate anywhere in the World excluding the United States of America and/or Canada in connection with your business after 21 May 1997.

3.  Cyber Protection

Cyber Protection provides Members with the right to claim Protection for claims arising out of: media wrongful act, privacy and security wrongful act to a third party. The Protection provides privacy notification and crisis management costs, loss of profit, operational expenses, extortion expenses or data recovery costs resulting from a network compromise, data breach or an extortion demand (subject to the terms, conditions and exclusions of the wording).

4.  Environmental liability

A base level of Environmental Liability Protection is automatically provided to all Members who take up property and liability classes with Unimutual, providing cover for $2,500,000 any one claim and in the aggregate with a $250,000 basic retention.
The property and liability covers will respond to pollution caused by a sudden release. Environmental liability cover responds to losses arising from gradual release over an extended period, including resultant claims, remediation and legal defence costs (subject to the terms, conditions and exclusions of the wording).
In addition to the base cover, a number of cover enhancements are available as priced options, these include:

  • Pre-Existing Pollution Conditions,
  • 1 – Year Retroactive Date, Business Interruption,
  • Underground Storage Tanks, Crisis Management
  • Contractors Pollution Liability Extension, Construction Work,
  • Contractors Pollution Liability Extension – Asbestos & lead abatement program,
  • Transportation Coverage,
  • Asbestos coverage caused by an Insured Peril,
  • Asbestos coverage for Business Interruption & Property Damage only.

5.  Active Assailant

Protection provides the Member with the right to claim Protection for claims arising out of:

  • losses solely and directly caused by an Active Assailant Event occurring during the Protection Period within the Geographical Limits as stated within the schedule,
  • Public Relations consultancy costs by a Mutual approved consultant,
  • Relocation expenses for the Member,
  • Counselling and/or psychiatric expenses,
  • Medical expenses other than counselling or psychiatric expenses.

6.  Terrorism Protection

Terrorism Protection provides Members with the right to claim Protection for damage caused by an Act of Terrorism. The Member also has the right to claim Protection for any amount they legally liable to pay as compensation and claimants cost and expenses as a result of claims made against the Member during the Protection period provided that such claims arise out of an occurrence that takes place during the Protection period, for bodily injury and/or property damage resulting from an act of terrorism.

Distribution

The Unimutual Protection(s) outlined in this TMD is distributed to potential clients, that are eligible for membership to Unimutual, on both a direct basis and via the Member’s licensed insurance brokers.

This potential client will be required to meet the eligibility requirements of Unimutual’s membership before the Protection(s) are provided.

In order to distribute this product, the TMD must be current and not subject to any ASIC action that might suggest the TMD is no longer appropriate.

TMD Reviews

This TMD will be reviewed

First Review Within 12 months from the date of this TMD
Subsequent Reviews Every 12 months after the end of the previous review.
Review Triggers

Where an event or circumstance is identified by us or is notified to us that would reasonably suggest the TMD is no longer appropriate.  This may include (but is not limited to);

  • A material change to the design or distribution of the Unimutual Protection product, including material changes to the PDS.
  • A material alteration to acceptance criteria or underwriting criteria and/ or the membership criteria.
  •  Relevant material external events such as relevant litigation or adverse media coverage
  • Relevant feedback information or notification received from a regulator such as ASIC or other regulatory body
  • Significant changes in renewal and /or reduction in Protection take up
  • Increased complaints
  • A number of Members no longer renewing their membership.
  • Any significant dealings that are inconsistent with the TMD.
  • Sudden and unexpected changes in claim volumes and values resulting in increased loss ratios.

 Version TMD PDS 21-22 UML21.01 

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