Goodbye Cash, Hello Property
From 1 July 2015 RMS is planning to discontinue the Cash in Safe and Cash in Transit cover lines. We say “planning” because we are still working through some of the finer details and there is a chance that closing the lines may be delayed.
Even though the 1 July 2015 date is not yet certain we thought it important to inform church organisations about this change so that you are not surprised if the Cash in Safe and Cash in Transit cover lines disappear from the property renewal notices when they are released in May.
But don’t worry there will still be cover available for cash after the change – it will just be incorporated into the broader property program (subject to special terms, conditions and limits).
So why the change? Well there are a number of reasons:
- To make things simpler – there will now be two less covers for church organisations to understand and review and two less covers for RMS to administer.
- To broaden cover – by including cash under the broader property program more church organisations will have cash cover than before.
- To introduce an excess for cash losses – excesses share the financial impact of losses and create an incentive for church organisations to manage risk and avoid losses.
- To support mission – church organisations will no longer pay a direct contribution for the cash cover lines, returning approximately AUD$35,000 per annum to support the mission of the church.
Right now there is nothing you need to do to initiate this change – we will make the changes in the background and it should appear seamless to you – but do keep an eye out for the June edition of InfoRMS by which time we hope to have more information to share.