Our reading of the National Psychology Board PI policy is that the VPA Inc current policy, being a group policy, does not satisfy the requirements.

We also understand that psychologists will need to have a compliant policy from 1 July 2010.

Because of the decision of the National Board that psychologists must either have an individual policy or be covered by an employer or educational institution group policy, our policy is likely to be non-compliant and will therefore cease on 30 June 2010. Members would therefore need to take out an individual policy from 1 July 2010.

We have had discussions with the IH Group, an insurance brokerage which offers PI insurance, through Lloyds of London. IH Group can offer competitive rates for PI.

There are 2 categories of insurance on offer:

1. Employed only, or Employed with private practice earnings less than $40,000
2. Employed with private practice earnings above $40,000

For medium cover of $2M the premiums are

1. $181.23
2. $228.11

(Tax deductible of course)

This insurance meets all the requirements of the national board. Note that the Board has not set any requirement for minimum cover.

Click here to download the VPA - IH Group Application form

Click here to download the VPA - IH Group Information sheet

Purchase online at
www.ihgroup.com.au/associations/victorian-psychologists-association.html

Because we are not be able to offer Group PI insurance, the VPA fees for 2010-2011 are the same as the AHP for next year - $495.00 for a full-time membership. We do not currently offer PI insurance to members of the AHP. For psychologists the full-time VPA membership fees for 2010-2011 are less than last year’s fees which were $522.50 (fees will be the same as 2007-2008.

In summary:

• The VPA group policy may not be compliant with the requirements of the National Psychologists Board
• The Psychology Board imposed new PI requirements without consultation with stakeholders
• The new requirements come in from 1 July 2010
• Members will be covered by the VPA insurance policy up to 30 June 2010 after which it will cease
• We recommend that members investigate their options re PI cover, but we can recommend the IH Group for cost-effective cover which meets the requirement of the National Board
• We advise members that there is no kick-back to the VPA from recommending the IH Group
• The full-time subscription to the VPA is reduced to $495 for 2010-2011
• We remind members that both VPA membership and PI insurance premiums are fully tax deductible

The VPA continues to provide members with the full range of industrial services and protections.

The VPA PI policy will cease from 30 June 2010, and you should take out your own individual policy from 1 July 2010.