QUEENSLAND LOCAL GOVERNMENT MUTUAL (LGM) QUEENSLAND LOCAL GOVERNMENT MUTUAL (LGM)

Queensland Local Government Mutual (LGM) is Queensland local government’s legal liability and assets self-insurance scheme which operates with the sole objective of delivering benefits to councils and local government-controlled entities.

Since its inception in 1994, the scheme has provided a range of covers including public liability, professional indemnity, councillors’ and officers’ liability, employment practices liability and cover provided to casual hirers of council facilities.

On 30 June 2015, LGM launched a new fund to provide cover for local government assets and the full range of related covers required by councils including motor vehicle, machinery and personal accident.

LGM Assets had a successful first year and achieved its membership and financial objectives.

All members renewed for 2016/17 and five additional members joined from 1 July 2016. A key objective of LGM Assets is to directly assist members enhance asset management processes and outcomes.

Key elements of that assistance are ensuring the accuracy of asset insurance schedules and conducting professional risk assessments of members’ key community assets.

With the new assets fund in place, LGM is now providing councils with a local government controlled one-stop shop for all insurance and risk servicing requirements.

To underline that position, the overall operating brand ‘Local Government Mutual Services’ (LGMS) was established. Over time LGMS will become a single portal for accessing services from LGM and also Local Government Workcare.

As was the case in 2015, the ongoing strength of LGM’s financial position enabled the LGM Board of Management to determine that further surplus funds were available for distribution to members.

With the support of the LGAQ, arrangements have been made for a total of $3 million to be distributed to continuing LGM members as part of the 2016/17 member contribution invoicing process. This distribution follows the $2 million surplus distribution in 2015.