Frequently Asked Questions
Redicova was built to empower Northern Australia. Redicova provides fast emergency cash to assist us to recover quicker and get on with life after a severe tropical cyclone.
Read on to discover more about our product and if you have any further questions, please email them through to customersupport@redicova.com.au.
ABOUT PARAMETRIC INSURANCE
There’s a couple of ways parametric insurance is different to traditional insurance such as home and contents or business insurance.
1. Parametric insurance may not be based on experiencing any physical damage or loss to property.
Most people are familiar with traditional property insurance – you pay a premium to cover you in the case of property damage or loss. As the goal is to return you to your original position before the damage, you may only receive a payment after an assessment which verifies the extent of any material loss or damage.
Parametric insurance is based on an agreed event occurring, not necessarily the resulting in material damage.
Redicova covers you for any financial or economic loss (including property damage or personal injury) suffered by You caused by Very Destructive Winds as a result of a Severe Tropical Cyclone or within the 5km Buffer Zone, occurring at the Insured Situation. So you don’t need to have any physical damage to claim, instead you might be an employee who suddenly doesn’t have any income as your workplace has been damaged; or you’re a business owner who can’t operate because an event has affected the local area and your customers.
2. Parametric insurance claims assessment process.
As it’s not necessarily based on property damage, you don’t have to go through the usual process of having your damage being assessed by the insurance company before a claim can proceed. If the triggering event occurs at your Insured Situation, you get paid.
Not at all. You can purchase Redicova without having any other insurance, or in addition to existing insurance arrangements. Traditional insurance can cover your assets for run of the mill claims like fire, storm damage, lightning strike, fusion and accidental damage so you should consider what your requirements are based on your particular objectives, financial situation or needs.
Redicova benefits are payable regardless of any other insurance you may have.
Redicova benefits are payable regardless of any other insurance you may have.
Redicova can provide a handy back-up as cash benefits received from Redicova can be used to cover any additional costs you incur after an event or to fund insurance excess costs on your standard insurance claim.
You should check your other insurance policies to see if the benefits reduce if you make a claim under Redicova or any other insurance. Seek professional advice if required.
Business interruption insurance is a valuable cover to have in place but it may only apply if material damage to property occurs which prevents your business from operating. This means if your property is not damaged you may not be able to claim. So if you’re lucky and don’t suffer any property damage (i.e. lose your roof or your stock), you may not be paid for your loss of income under traditional insurance.
Income protection insurance generally applies to loss of income due to personal accident or illness which affects your ability to work - not because you lost your job due to the impact of a cyclone on the local community and businesses.
Redicova can fill an important gap in the insurance market.
Unfortunately the costs of insurance have generally been increasing in Northern Australia.
You may be able to use Redicova as a tool to reduce your other insurance premiums by increasing your excess under those policies. For example if you increase your cyclone excess under your building insurance to $5,000, you could save on your insurance premium. A purchase of five units of Redicova with a Sum Insured of $5,000, would then enable you to pay your excess if a Severe Tropical Cyclone occurs.
Please talk to your insurance advisor to see if Redicova could help you in this way.
ABOUT REDICOVA
Redicova is an innovative, autonomous parametric wind insurance product that has been specifically designed for residents of Northern Australia to protect you in the event of Economic Loss caused by the Very Destructive Winds, or winds within a 5km Buffer Zone, occurring at your Insured Situation.
We will cover you for Economic Loss due to Very Destructive Winds caused by a Severe Tropical Cyclone, or winds within the 5km Buffer Zone, occurring at the Insured Situation during the Period of Insurance, as reported by the BoM.
If a tropical cyclone is developing, is about to be named or has been named, you’re too late.
You will not be paid for a claim arising from a known imminent event.
We suggest that you plan well in advance of the next cyclone season.
Redicova is a wind based product only.
Redicova does not cover any other perils including resultant or consequential flooding.
Other perils such as fire, explosion, earthquake, lightning, theft and burglary, actions of the sea, malicious damage and legal liability are not covered under the policy. We recommend that you consider other insurance policies to cover these events based on your particular objectives, financial situation or needs.
Cover is only provided for the location of your residence, property or place of commercial or agricultural enterprise located within the Catchment Area of Northern Australia and shown on the policy schedule. Cover is not provided away from the insured situation.
Parametric Insurance Solutions Pty Ltd (ABN 47 630 096 552, AR No. 001274106 (an Authorised Representative of Hareds Pty Ltd ABN 45 056 839 368 AFSL 252530), trading as Redicova (“Redicova”)
The insurer are certain underwriters at Lloyd's.
We use cyclone data provided by the Bureau of Meteorology (BoM) and geocoded address information is provided by Geoscape Australia, the trading name of PSMA Australia Limited, a self-funded public company owned by Australia’s governments. This product is commonly known as PSMA G-NAF. It contains more than 13 million Australian physical address records. Both government agencies provide free and transparent information to the Australian public.
Your Insured Situation address is very important as we use the latitude and longitude associated with your Authoritative Address issued by your Local Government Authority (LGA) to determine if you are eligible to claim under your Redicova policy.
If you choose an incorrect address we may deny a valid claim.
No, Redicova covers a single Insured Situation.
If you own or occupy properties in different locations, you will need one Redicova policy for each location.
Redicova is a single location cover.
1. You purchase units of cover with an agreed Sum Insured of $1,000 per unit.
2. The BoM must report that Very Destructive Winds, or winds within a 5km Buffer Zone, have occurred at your insured situation to trigger a claim. When this occurs, our system will email you to advise you are eligible for a payment.
3. You simply log into our portal with your user name and password; check your contact and bank details; correct and save your details as required; click on ‘Make a Claim’ and submit your attestation electronically.
4. We will provide an automated payment into your nominated bank account promptly after approving your attestation.
5. Get on with life!
Parametric insurance policies are based on the risk of a specific event occurring and the premium is calculated on this risk.
Redicova is based on the risk of a severe tropical cyclone occurring during the cyclone season which commences on the 1st of November and finishes on the 30th of April annually.
Your premium has been calculated on this period.
This means that on or after the 1st of November, your premium becomes fully earned as we have commenced the cyclone season.
Cancellation on or after the 1st of November will therefore not attract a refund.
ABOUT CLAIMS
Your Insured Situation address is very important as we use the latitude and longitude associated with your Authoritative Address issued by your Local Government Authority (LGA) to determine if you are eligible to claim under your Redicova policy.
If you choose an incorrect address we may deny a valid claim.
If a tropical cyclone is developing, is about to be named or has been named, you’re too late.
You will not be paid for a claim arising from a known imminent event.
We suggest that you plan well in advance of the next cyclone season.
Redicova will email you if a Severe Tropical Cyclone with Very Destructive Winds, or winds within the 5km Buffer Zone, are recorded at the Insured Situation as soon as the current Severe Tropical Cyclone threat has passed and SEWS Alerts have ceased.
You must reply to our notification and complete and submit your attestation if you are entitled to claim under your policy.
You simply log into our portal with your user name and password; check and update your contact and bank account details if required, click on ‘Make a Claim’ and submit your attestation electronically.
Payment is by EFT only to your nominated bank account promptly after your attestation has been accepted by us.
We'll also send you reminders at seven, 14 and 21 days if you forget.
After 30 days, you simply need to email claims@redicova.com.au to lodge your claim manually.
Payment is by EFT only to your nominated bank account.
You will receive your payment promptly after Redicova approve your Claim Attestation.
We will send you reminders at seven, 14 and 21 days after the original notification. After 30 days, you simply need to email claims@redicova.com.au to lodge your claim manually.
You can use your settlement funds however you choose!
- Buy groceries and household supplies
- Pay emergency or extraordinary expenses incurred following a Severe Tropical Cyclone
- Pay an insurance excess
- Replant crops or clean up farms
- Replace or fix items
- Pay employee wages
- Replace your own income
- Pay your mortgage and bills as they fall due
- Buy or hire a generator to run a freezer
- Any additional costs or expenses incurred by you caused by the event
- Get on with life!
No - your attestation is a legal declaration and this is all that is required once you receive our electronic notification that you are eligible to claim.
No excess is applicable to Redicova.
100% payment will be made to those Insured Situations within the BoM Operational Track Map’s Very Destructive Wind Zone.
A 30% payment will be made to those Insured Situations located within a 5km Buffer Zone immediately surrounding the Very Destructive Wind Zone as declared by BoM.
An attestation is a legal declaration made by you that is required by our insurers for you to make a claim. It’s a word that literally means a ‘declaration that something exists or is the case’.
Economic loss is a term which refers to any financial or economic loss (including property damage or personal injury) suffered by you caused by Very Destructive Winds as a result of a Severe Tropical Cyclone, or winds within the 5km Buffer Zone, occurring at the Insured Situation.
Taxation Implications
For the purposes of the below provisions for Taxation Implications, the use of ‘We’, ‘Us’ and ‘Our’ means the Insurers and Redicova.
The following taxation information is only a guide. Your individual circumstances will be important to and may affect the tax treatment of any premiums you pay or benefits you receive. We recommend that you consult with a tax adviser regarding Your individual circumstances.
Income Tax
Generally, if You are entitled to receive benefits for lost salary, wages or revenue under an insurance policy, the premium You pay may be tax deductible.
We recommend that You contact Your Tax Advisor to discuss tax deductibility of Your Redicova insurance policy premium.
Goods and Services Tax (GST)
The Sum Insured listed on your Policy Schedule includes GST (if GST applies).
We will generally pay the full Sum Insured (including any GST) in the event of a claim, unless a lower settlement amount applies in accordance with the Policy terms.
You are required to tell Us of Your entitlement to an input tax credit on premiums. If You fail to disclose or understate your entitlement, you may be liable for GST on a claim We pay.
If You are, or would be, entitled to claim any input tax credit on premiums and You inform Us of this entitlement at or before the time a claim is first made under the Policy and after the last payment of a premium is paid, We will reduce the Sum Insured by the amount of such input tax credit.
Any GST liability arising from the payment of a claim by Redicova to you, is payable to the Australian Tax Office by You.
We recommend that you consult with a Tax Advisor to discuss the correct treatment of your claim settlement and your individual GST obligations.
I have my own private AWS at my situation. What happens if my AWS measures Very Destructive Winds at my location, but BoM records show I have not?
We can only use records provided by BoM to verify that Very Destructive Winds have occurred at the insured situation. Privately owned AWS units and observations cannot be used to support a claim under Redicova.
Redicova can only use records provided by BoM. Privately owned AWS units and observations cannot be used to claim under Redicova.
APPLICATIONS
You must:
- be eighteen (18) years of age to purchase insurance; and
- reside in the Catchment Area of Northern Australia; or
- legally own real property in the Catchment Area of Northern Australia; or
- operate a commercial or agricultural enterprise in the Catchment Area of Northern Australia.
A location that is:
- within 300km inland of the Australian Coastline; and
- if Your Insured Situation is in Western Australia - north of and including Carnarvon (WA) postcode 6701; or
- if Your Insured Situation is in QLD – north of and including Bundaberg (QLD) postcode 4670; or
- if your Insured Situation is in the Northern Territory – anywhere in the Northern Territory.
No, you do not need to be employed to apply for Redicova. We believe that everyone over the age of 18 should be able to apply for Redicova regardless of your employment status.
It doesn’t matter! As long as you reside at the insured situation, you can still apply for Redicova.
No, Redicova covers a single Insured Situation.
If you own or occupy properties in different locations, you will need one Redicova policy for each location.
Redicova is a single location cover.
- Call your Local Government Authority to request your Authoritative Address.
- Ask Australia Post for your proper delivery address is.
- Refer to your Land Valuation Certificate for your Real Property Description (RPD).
- PIN your location using google maps and email this to customersupport@redicova.com.au
How do I pin my location using google maps?
https://support.google.com/maps/answer/144361?co=GENIE.Platform%3DAndroid&hl=en&oco=0#
Follow this link to google maps support for instructions using an android, desktop computer or apple device.
https://support.google.com/maps/answer/144361?co=GENIE.Platform%3DAndroid&hl=en&oco=0#
Our cover is purchased in units. Each unit is valued at $1,000 Sum Insured. Unit prices are tiered based on location and potential exposure to Severe Tropical Cyclones.
The cost per unit will be shown at the time of application and on your Policy Schedule.
Simply log in and get a quote.
Taxation Implications
For the purposes of the below provisions for Taxation Implications, the use of ‘We’, ‘Us’ and ‘Our’ means the Insurers and Redicova.
The following taxation information is only a guide. Your individual circumstances will be important to and may affect the tax treatment of any premiums you pay or benefits you receive. We recommend that you consult with a tax adviser regarding your individual circumstances.
Income Tax
Generally, if you are entitled to receive benefits for lost salary, wages or revenue under an insurance policy, the premium you pay may be tax deductible.
We recommend that you consult with a Tax Advisor to discuss tax deductibility of your Redicova insurance policy premium.
Goods and Services Tax (GST)
The Sum Insured listed on your Policy Schedule includes GST (if GST applies).
We will generally pay the full Sum Insured (including any GST) in the event of a claim, unless a lower settlement amount applies in accordance with the Policy terms.
You are required to tell Us of your entitlement to an input tax credit on premiums. If you fail to disclose or understate your entitlement, you may be liable for GST on a claim We pay.
If you are, or would be, entitled to claim any input tax credit on premiums and you inform Us of this entitlement at or before the time a claim is first made under the Policy and after the last payment of a premium is paid, We will reduce the Sum Insured by the amount of such input tax credit.
Any GST liability arising from the payment of a claim by Redicova to you, is payable to the Australian Tax Office by you.
We recommend that you consult with a Tax Advisor to discuss the correct treatment of your claim settlement and your individual GST obligations.
Winds caused by a Severe Tropical Cyclone which are recorded and published by the BoM as having reached maximum mean surface winds of no less than 118 km/h near the centre of the cyclone and maximum wind gusts over land of no less than 165 km/h.
In simple terms, Very Destructive Winds are those experienced in Severe Tropical Cyclone rated as a Category 3 or above by the BoM.
BoM Definition – Very Destructive Winds
See: http://www.bom.gov.au/cyclone/faq/index.shtml#definitions
The term damaging winds refers to wind gusts in excess of 90 km/h.
The term destructive winds refers to wind gusts in excess of 125 km/h.
The term very destructive winds refers to wind gusts in excess of 165 km/h.
| Category | Sustained winds (km/h) | Strongest gust (km/h) | Typical effects |
|---|---|---|---|
| 1 Tropical Cyclone | 63 - 88 | Below 125 | Damaging winds |
| 2 Tropical Cyclone | 89 - 117 | 125 - 164 | Destructive winds |
| 3 Severe Tropical Cyclone | 118 - 159 | 165 - 224 | Very destructive winds |
| 4 Severe Tropical Cyclone | 160 - 199 | 225 - 279 | |
| 5 Severe Tropical Cyclone | Over 200 | Over 280 |
The official Cyclone Season in Northern Australia runs from 1 November to 30 April each year. Although historic frequencies can be measured, future likelihood is unknown as cyclones are unpredictable. Historic data indicates that all of Northern Australia is susceptible to Tropical Cyclones. Visit BoM for further information on historic cyclone data. www.bom.gov.au
You can choose the level of cover you need, so we sell cover in units each with a $1,000 Sum Insured. You can purchase as many units as required, subject to availability. So you can buy one unit at a time or 1,000 units all at once. It's your choice.
You can purchase as many units as you require, subject to availability. You can buy one unit at a time or 1,000 units all at once. It's your choice.
You can buy online from our website or with the assistance of one of our approved referrers. To find an approved referrer, simply login to the portal, register and get a quote to view the list.
Redicova is an annual policy of insurance - the same as your car or home insurance policy. Redicova is valid for 12 months, unless the policy ends earlier in accordance with its terms – for example you cancel you cover or the full sum insured has been paid out as a result of a claim.
You will need to purchase additional Redicova units if you have had a claim and your sum insured is exhausted by the claim settlement if you wish to be covered for the remainder of that cyclone season.
There is a fourteen (14) day-cooling off period. If you wish to cancel the policy, you can cancel it by contacting Redicova in writing within fourteen (14) days of its date of issue.
If you cancel during the cooling off period we will refund all the premium less any non-refundable government charges, taxes and levies that we have paid.
If a tropical cyclone is developing, is about to be named or has been named, you’re too late.
You will not be paid for a claim arising from a known imminent event.
We suggest that you plan well in advance of the next cyclone season.
Any financial or economic loss (including property damage or personal injury) suffered by You caused by Very Destructive Winds as a result of a Severe Tropical Cyclone, or winds within a 5km Buffer Zone, occurring at the Insured Situation during the Period of Insurance.
No, this is a Very Destructive Wind product only.
Redicova will only respond to Very Destructive Winds, or winds within the 5km Buffer Zone, occurring at your insured situation.
Redicova does not cover flood or other perils.
It doesn’t matter. As long as you have valid Redicova insurance and your insured situation sits within the path of the Very Destructive Wind Zone (the central dark red onion ring) as published by BoM, you will receive a 100% payment for other Economic Loss you suffer as a result.
If you are in the Buffer Zone (5km immediately surrounding the Very Destructive Wind Zone as declared by BoM), you will receive a 30% benefit payment.
Absolutely! While you can have parametric insurance without standard home and contents, business or rural insurance.. You should consider maintaining your existing home, business, strata, rural property or other insurances based on your particular objectives, financial situation or needs, for example to cover other events such as fire, earthquake, fusion and accidental damage.
Before the Policy expires, we will advise you whether we intend to offer renewal and if so on what terms. It is important to check the terms of any renewal before renewing to ensure that the details are correct.
You are most welcome to speak with your trusted insurance professional regarding Redicova.