INSURANCE

GENERAL INSURANCE

House and Contents
Whilst it is critical that you have insurance against loss in regard to your property and contents, there are several factors which need to be taken into consideration:

• Ensure that both property and contents are insured for their full replacement values, rather than the indemnity (or market) value.
• It is extremely important that you do not underestimate the value of your property as in the event of a claim you would only receive a proportion of the insured value. Be aware of any events that may not be covered, for example flood.
• Any items of significant value such as jewellery or works of art should be separately specified in your policy.

Public Liability and Workers Compensation
Public liability insurance protects you against claims arising from personal or property damage resulting from an accident on your property. This type of cover is usually included in most house insurance policies, however as legal settlements in the event of claims can be exceedingly large, you should ensure that your cover is adequate.

Workers compensation insurance is often overlooked and is quite important if you have a gardener, handyman or cleaner working in or around your home. If you are in this situation and an injury occurs, it could be deemed that you were that person's employer and would thus be liable for compensation payments.

HEALTH INSURANCE

The whole area of how health care should be funded in Australia is one of ongoing public debate with the majority of people opting to rely on the Medicare system. The result has been that health funds have seen their membership numbers falling, whilst those remaining in health funds have often been people with higher health risks. The outcome has been that health insurance premiums have continued to rise. The government has been attempting to address these issues in a number of different ways, the most recent being the introduction of a 30% rebate on all health insurance premiums as of January 1 1999.

Most people are only covered under Medicare, which is partially funded by a 1.5% levy on taxable income once income reaches a certain threshold. For a couple, the threshold beyond which the full levy becomes payable is $24,426. Medicare pays for the first 85% of the "scheduled fee" payable for medical services and also pays for the full cost of public hospital treatment as long as the hospital provides the doctor.

Health insurance is for those people who are seeking:

• Private hospital cover
• Treatment by their own doctor in a public hospital
• Reimbursement of medical expenses in excess of 85% of the "scheduled fee"
• Reimbursement of other health related expenses such as dental, optical and chiropractic care.

Set out below are the issues which should be considered in regard to health insurance:

• Health fund premiums fall into two categories: hospital cover and extra cover for other services such as optical and dental.
• The price of hospital cover is dependent upon which procedures are included or excluded. For example, lower levels of cover may exclude joint replacement or transplant surgery.
• The premium for hospital cover can be reduced if an excess is placed on the policy which limits the ability to make small claims. Typically an excess can vary between $200 and $1,000.
• The price for extra cover is dependent upon the extras that are included (such as alternative therapies) and the limits that are placed on the claimable amounts.
• Whilst most health funds offer premium scales for individuals and families, some funds also offer special rates for couples which are cheaper than the family rates.
• The health fund rebate of 30% should be taken by way of a reduced premium paid to the health fund of your choice

Senior's Health Card
The Senior's Health Card is available to pensioners and those people who are of age pension age and whose income is below the defined threshold. Holders of this card generally will not have to pay more than $3.20 for a prescription to be filled. If more than 52 prescriptions are obtained in a calendar year, subsequent prescriptions will be filled free of charge.

Many medical practitioners will bulk bill holders of the Senior's Health Card.