5.

Insurance

We have a comprehensive insurance program as part of our risk management strategy.

We review insurance coverage each year. We arrange cover for various risk exposures that could affect Sydney Water’s:

  • existing assets and those under construction

  • operations

  • insurable legal liabilities.

Sydney Water transfers these risks to the NSW Treasury Managed Fund and various Australian insurers.

We seek advice from our appointed insurance broker about placing and maintaining insurance and about insurance for major projects.

As part of our new corporate strategy, we are reviewing strategic risks to reflect potential threats to achieving the new corporate objectives.

What legal events have we faced?

Independent Commission Against Corruption (ICAC)

In March 2012, the NSW Independent Commission Against Corruption (ICAC) accepted and published Sydney Water’s response to ICAC’s March 2011 recommendations. ICAC is due to close out the recommendations in March 2013.

NSW Supreme Court action

We began legal action in the Supreme Court of NSW in March 2011, to recover money in relation to a contract allegedly signed by a Sydney Water staff member who did not have the authority to sign it.

On 13 December 2011, the Supreme Court made a determination in favour of Sydney Water. The Court has granted the defendant extra time to appeal the judgment.

NSW Land and Environment Court action

We asked the Land and Environment Court to compensate us for losses from contamination of land we own at Waterloo. Although a defence has been filed, the court has not set a date for the hearing yet, or given directions for filing evidence. In separate proceedings, the court ordered those who contaminated the land to restore it.

Sydney Water Regulation 2011 (NSW)

The Sydney Water Regulation 2011 replaces the Sydney Water Regulation 2006, which was repealed on 1 September 2011. There are some changes, as the new Regulation does not include some previous offences, such as providing false and misleading information.