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General Insurance Industry Arson Reward Scheme

The objectives of the Arson Reward Scheme are:

·         To provide a deterrent to arson and arson fraud;

·         To provide information to assist Police in the investigation of deliberate fires where arson is involved;

·         To provide information to assist insurers in the denial of liability for fire claims where fraud is involved and to reduce claim payouts.

Participation in the Arson Reward Scheme is by Insurance Council members.  Non Insurance Council member insurers are to be invited to participate.  (Refer Responsibility for Payment of Rewards).

Reward Situations

For information leading to the conviction of any person for destroying or damaging property in the State, insured by a participant in the scheme, through an act of arson: -

Case 1: Conviction of the insured (arson fraud);

Case 2: Conviction of a fire setter (insurance fraud is not involved);

Case 3: Successful denial/reduction of the insurance claim following civil court proceedings.

Note: In each of the three cases, an insurance claim must be involved and the property must be insured by a participant in the scheme.

In each of the three cases, a reward may apply for information leading to a conviction in circumstances where attempted arson is involved, for example, explosion damage associated with attempted arson of property insured by a participant in the scheme.

Reward recommendations are to be made by the Police where a criminal conviction is involved. The Insurance Council should be represented on the Police Rewards Evaluation Committee when rewards under the scheme are being considered. Where civil proceedings are involved (case 3 only) an Insurance Industry Rewards Assessment Committee using appropriate assessment guidelines will be established in each case to recommend a reward amount.

Upper limit any one reward is to be advertised as $25,000 in order to encourage the provision of sufficient relevant information.

Responsibility for payments of rewards

Insurance Council member insurers

The reward will be paid by the insurer(s) of the property involved, at their discretion.  The reward may be paid by a cheque from the Insurance Council, provided the insurer(s) will participate by reimbursing the Council.

Non Insurance Council member insurers

Agreement to be obtained concerning payment of reward amounts in respect of property they insure.

Promotion/advertising is to be primarily the responsibility of the Insurance Council.