FOR A DEFINITION of a MUTUAL: Click HERE

MAG wants the NRMA to be run as a Mutual:

providing Benefits to its Members from the profits it makes.

•  Eestablish a new mutual insurance company, which offers rebates to policyholders out of excess profits, and to again subsidise the roadservice;

•  Cut roadservice fees with membership rebates from the Company's profits;

•  Restore the "NRMA Plus" benefits scheme to reward 25+ year members;

•  Deliver a better insurance deal for members

•  Re-establish an NRMA Inspection Service

• Increase the number of road patrols to get to members quicker;

• Abolish the current NRMA policy of "S" plates for older drivers;

•  Ban members funds being wasted on political donations;

 

WHAT IS A MUTUAL AND WHY IS IT IMPORTANT

WHY IS MUTUAL INSURANCE SO IMPORTANT FOR ROAD SERVICES

WHAT ABOUT DEMUTUALISATION?

DEMUTUALISATION OF NRMA INSURANCE IN 2000 WAS WRONG

 


 

WHAT IS A MUTUAL AND WHY IS IT IMPORTANT

•  The NRMA is a members' mutual, a co-operative company owned by its members,

whose sole reason for existence is to provide benefits to its members by sharing out the profits it earns.

•  The "mutual" concept is that a group of people, through co-operation, are better able to act for their mutual benefit than if acting alone.

•  The NRMA was established by people who realised the benefit that a motoring mutual would bring to the road users of NSW. It was highly successful.

•  The Mutual structure is the only structure capable of providing benefits to members

which include "unprofitable or loss-making" activities such as local service centres, travel advice, maps, accommodation surveys, informational materials, lobbying, research etc which are not undertaken for profit. Shareholder companies, focused on delivering profits and generating wealth for its investors cannot afford to "waste" money on activities which do not directly lead to generating future wealth.

•  MAG was formed to protect and champion the mutual ideals of the NRMA.  

WHY IS MUTUAL INSURANCE SO IMPORTANT FOR ROAD SERVICES

•  75 years ago NRMA introduced low cost members' Mutual Insurance

with profits subsidising the Road Service. This kept fees low and provided lots of benefits and free services to members.

•  Demutualisation of NRMA Insurance in 2000 ended these subsidies. Your fees have since skyrocketed.

•  Every otherAustralian motoring organization offers insurance and subsidises its motoring services

in just the same way the NRMA used to do. It has been proven to be a winning formula.

•  It's time to start again, and establish a new mutual insurer to subsidise the Road Service.

WHAT ABOUT DEMUTUALISATION?

•  Successful Mutuals are far more valuable to members because of the benefits they provide than a one-off, fist-full of dollars by demutualising.

•  Unfortunately, Mutuals are often seen by clever corporate raiders and asset-strippers as easy targets, particularly if they have weak structures and high levels of assets.

•  The NRMA with its wealthy and successful Insurance Mutual were seen as easy targets

•  In 1994 an attempt was made to demutualise the complete NRMA leaving it privatized and focused on delivering profits to shareholders rather than benefits for members.

•  NRMA Motoring and Services remains a Mutual today because Richard Talbot championed members' rights and sank the 1994 demutualization.

•  Undeterred by the result of 1994 by some some of the directors worked up a plan to split NRMA and demutualise Insurance which was the powerhouse of wealth generation.

•  The 1994 prospectus reminded members:

"Selling off NRMA Insurance would effectively split the NRMA apart.
The NRMA's strength lies in the value of both road service and insurance, with each benefiting the other.
If they were to be separated, each would be weakened.
The value of the combination is greater than its parts."

DEMUTUALISATION OF NRMA INSURANCE IN 2000 WAS WRONG

The Insurance company was demutualised in 2000.

•  NRMA Insurance became a highly profitable company.

•  NRMA Motoring Services was left as a financial basket case
without the support of subsidies from the Insurance company it once owned.
In fact the agreements made it pay money to the Insurance company to control its own database and collection of membership fees!

•  Promises made to members at the time have now been broken.

•  Fees have skyrocketed to keep the NRMA profitable

•  Member Benefits have been cut

 

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