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Be Reassured About Fraud Insurance!

This article has been written in collaboration with Comcover, Department of Finance. Comcover have noted that they do not receive many claims following fraud events and are looking to increase awareness of this type of cover for government entities.


Comcover is the Australian Government's self-managed insurance fund. The Department of Finance administers Comcover for the benefit of fund members. All non-corporate and corporate Commonwealth entities subject to the Public Governance, Performance and Accountability Act 2013 and classified to the General Government Sector must belong to the fund unless the Minister of Finance specifically exempts them.

Comcover collects and pools fund member premiums, which in turn, may be drawn upon to respond to insurable losses as defined under the Comcover Statement of Cover. Fund members are to refer to their particular Schedule of Cover which provides specific information on classes of cover, limits of cover, applicable excess amounts, and other relevant details.
Classes of cover include:

  • liability
  • property
  • motor vehicle
  • personal accident
  • travel outside of country
  • expatriate
  • Personal effects and travel inside of country.

Fraud (first party only) is defined as a type of property loss. However, fund members may be unaware that this is the case and that it is covered under the Comcover Statement of Cover, subject to terms and conditions. As a result, these fund members are not making claims to Comcover for fraud events, despite being able to do so.

Types of fraud covered by Comcover

Cover is available for first party fraud resulting in:

  • damaged, lost or destroyed property
  • losses following from such property damage or loss
  • legal liabilities.

First party fraud includes any acts of fraud or dishonesty directly committed by, or with the collusion of, staff or officials within an Australian Government entity.

What to do when first party fraud is detected

Comcover fund members must notify Comcover when a fraud incident occurs, when they are making a claim, or as soon as reasonably practicable once they  become aware of circumstances that are likely to give rise to a claim.

Early notification of a claim or an event or loss that is likely to give rise to a claim is crucial to the ability of Comcover to protect fund member interests and minimise any subsequent loss.

Government entities dealing with a possible fraud event should review their Schedule of Cover and consider contacting Comcover to report the fraud event.

Limits to the kinds of fraud that are covered

A claim may only be made against first party fraud. Comcover will only pay for losses to property wherever incurred through any act or acts of fraud or dishonesty committed by any of a fund member's:

  • officers, employees or directors
  • voluntary workers
  • members of boards, commissions, committees or other bodies when acting alone or in collusion with others.

Payment is only made up to the amount shown in a fund member's Schedule of Cover.

Find out more

For information on Comcover and/or entity insurance and risk management contacts:

Author: Tolga Tez

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