It is nearly that time of the year again when many members of the ADF are preparing to move the family and possessions to the new posting locality.

No doubt, like myself, these people are beginning to experience an ever-increasing feeling of dread. Once again, they put their prized possessions in the hands of the lowest bidder and pray to the great removal god that these removalists pack everything properly and hope against all hopes that nothing is damaged. Or worse, broken beyond repair.

Unlike the more modern policies provided by the various brokers on the market, the insurance cover provided by defence does not include new-for-old replacement. So we have a situation where, for example, a member of the ADF moves on posting and an item of furniture purchased two years ago for $500 is broken. Upon closer inspection by a recognised repair agent, the item is deemed to be irreparable.

Enter Removals Australia. Under current policy, compensation for damaged/unserviceable furniture isto the amount that would allow the purchase of a similar item of the same age and condition. Let's be totally realistic now and think logically - where on earth will the member find a similar item that is two years old in similar condition for the paltry sum $100?

My question is a very simple one. When will Removals Australia and the ADF enter the 21st Century and insure members belongings against casual damage/accidental breakage during removal on a new-for-old basis? Granted, the amount of indemnity during removal on posting has increased recently from $53,000 to $100,000 but what about new-for-old replacement on damaged/unserviceable items. Is that too much to ask?

WO2 S. Redford
HQ Norcom, NT


Maj-Gen Simon Willis, HDPE, replies:

The letter raises two issues that warrant comment, the basis for selection of removal contractors and the reason for continued use of the indemnity.

Removals Australia purchases removal services from removal contractors on a best-value-for-money basis, not lowest price.

Value for money is determined by price, quality of service and feedback from customers. Removalists who apply to join the panel of providers must demonstrate they have the operational and financial capability to consistently provide a high quality of service on the routes they apply to service.

Applicants who do not meet Removals Australia's service standards are not admitted to the panel and not invited to quote on any work.

The present indemnity arrangements are intended to restore items damaged in transit to members in the condition they were on uplift, or provide compensation equivalent to the value of the item on uplift.

As a general rule, an item up to 12 months old is accepted as new and made good on that basis. This approach is regarded by Defence as fair and reasonable. The expectation is not that members can purchase an item of similar age or condition but that the compensation paid can be used towards the purchase of a replacement item.

Indemnity provisions are not the same as commercial new-for-old insurance which is available for household contents. The indemnity covers furniture and effects in transit, where the risk of damage is greater and insurance costs are higher than insurance on household contents in a static situation.

Because the Commonwealth no longer wants to carry its own insurance, Defence can move from the current indemnity provisions to ordinary insurance during removals. This will look at the viability of using new-for-old insurance for goods in transit.