Frequently asked questions

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Frequently asked Questions

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What is the structure for the Mutual?

The Local Government Mutual is a hybrid discretionary mutual, which means there are 2 layers of protection:

  • The Mutual pools its income from members to cover the cost of low-level, expected losses
  • There is a layer of insurance to protect against larger, unexpected losses and accumulation of losses

Members will pay a contribution into the Mutual to benefit from the protection it provides. The contribution will vary between councils based on the risks they bring to the Mutual.

As a discretionary mutual, the Mutual Board can also use its discretion to approve claims that fall outside a member’s terms of cover, if it considers this to be appropriate.


How is the Mutual run?

The operation of the Mutual will be the responsibility of the Board of Directors. The majority of Directors will be drawn from members and elected by the membership.


How can I leave the mutual?

A member may leave the Mutual at the expiry of the protection period. 

How much will I have to pay to cancel the authority's membership?

There is no charge to cancel your authorities membership at renewal.


What does it mean to be a member of the Mutual?

Each member will have voting rights which it can exercise on members’ resolutions, including election of the Board of Directors. The Board will be made up of elected members and chief officers from member councils who will have a close interest in ensuring that the Mutual runs smoothly and efficiently.


How can I make a claim?

Visit our claims page on how to make a claim.

Will valid claims be paid?

The Local Government Mutual is a hybrid discretionary mutual which means that the Board has sole and unfettered discretion to agree to a claims, and if agreed, the amount to be paid. However, members can expect that all valid claims will be paid. The Board also has the discretion to agree to the payment of claims which fall outside the terms of the member’s protection. Unmeritorious third-party claims will be rigorously defended.

How will the Mutual utilise the authorities’ current approaches to claims management?

The management of claims will form part of the discussion with potential members during the admissions process.

How can I dispute the outcome of a claim?

In the first instance the disputes would be referred to the Board. The Rules of the Mutual will allow for further escalation.


What is the admissions process?

See our application page for more information.


Can we use an insurance broker?

Yes, we understand that many councils will have good working relationships with their insurance brokers and value their advice. Any local authority applying to the Mutual, or a member of the Mutual is of course fully entitled to retain the services of an insurance broker if they wish to and the Mutual has no objection to accepting business through brokers. The Mutual will not, however, pay commissions or make any other form of payment to a placing broker.

Risk Management

How will the Mutual prepare for emerging risks?

Identification and dissemination of information and advice on emerging risks will form an important part of the role of the Mutual. The mutual structure offers the advantage of flexibility in that the protection available is not constrained by market norms, although the range of protection provided clearly needs to be balanced with the exposure of the Mutual.