Mining insurance
The mining industry is important to Australia and a number of life insurance companies provide competitive mining insurance policies to protect the income of most types of miners in this highly regarded sector.
How income protection insurance for miners is assessed
When the select insurers offer income protection insurance for miners, they will take the following into consideration:
- underground/open-cut mining
- explosive use/contact or not
- hard rock mining or soft rock mining
- occupation title and duties required
- hours worked in a standard work rotation (e.g. 6 weeks on, 2 weeks off)
Every miner’s situation is different and occupations can vary from any of the following:
- Assayer
- Bogger operator
- Boilermaker/welder
- Carpenter
- Chemical engineer
- Diesel mechanic
- Dogman
- Draftsperson
- Dragline operator
- Driller operator
- Dump Truck Operator
- Electrician/Auto electrician/Electronic technician
- Engineer
- Excavator operator
- Exploration manager
- Field assistant
- Geologist
- Hauler
- Industrial chemist (non hazardous materials)
- Instrument technician
- Jumbo operator
- Laboratory technician
- Labourer
- Longwall co-ordinator
- Maintenance Planner/Supervisor/superindendent
- Metallurgist
- Mill operator/superintendent
- Mine deputy/manager
- Mobile Plant Supervisor
- O.H.& S. Manager/Officer
- Pit technician
- Plant operator
- Plumber
- Quarry manager/worker
- Rescue /recovery team workers
- Shift supervisor
- Surveyor
- Tool pusher
- Train driver
- Truck driver
It is therefore best to have all of the above information on hand before contacting an xLife adviser who can find the most suitable policy.
Example of an underground miner on mining insurance income protection claim
Tony had heard about the mining boom in Western Australia from friends and he didn’t want to miss out. He had a heavy vehicle license and plenty of experience working in the coal mines of the Hunter Valley, NSW, so he packed his bags and headed out west to make his fortune.
After securing an underground mining job, Tony consulted a financial adviser. He intended to work in Western Australia for five years and was confident he could earn between $150,000 and $200,000 per year thanks to a combination of experience, expertise and the current demand for his skills. He predicted that after five years he would have built an investment portfolio that could set him up for the rest of his life.
As well as putting in place a comprehensive investment strategy, Tony’s adviser suggested he also take out an insurance package, including income protection insurance. Because of the nature of his employment contract, Tony purchased an income protection insurance plan with a 30-day waiting period and insurable benefit up to the maximum of $10,000 per month.
Tony was a keen bushwalker and loved to go bush on the weekends to pursue his hobby. One Sunday he was bushwalking alone in rugged terrain close to the mine when he lost his footing on a narrow cliff track. He fell several metres down the cliff face, landing on a rocky ledge.
His injuries included a variety of cuts and bruises, along with a badly broken right ankle. But thankfully Tony’s mobile phone still worked and he was able to call for help. An emergency crew were at the scene within an hour to rescue him.
However, Tony’s injured ankle required surgery and several pins needed to be inserted. He was airlifted to Perth, where he spent a week in hospital. And it was almost three months before Tony made a full recovery and was able to return to the mine.
Tony received sick leave pay of four weeks from the mining company. Then, after four weeks, his income protection insurance payments allowed him to pay ongoing living expenses for the last two months of his recovery.
The good news was that despite being off work because of the accident, Tony’s wealth creation strategy was able to continue.
Source: AXA 2010
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April 2011
