CENTRAL West Rugby Union chief executive Peter Veenstra has vowed his organisation will not support a National Insurance Levy Scheme (NILS) because it could result in a 100 per cent increase in insurance costs for clubs.
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The Australian Rugby Union has signaled its intention to individually register and insure players, rather than a per-team basis as they had previously done. The levies could cost senior players an additional $93 for seniors and $35.50 for juniors.
Veenstra and CWRU president Kim Rickards sent a letter to clubs yesterday confirming their stance on the proposals.
In it the CWRU states it supports a national participation fee (NPF) as long as "such fee is moderate and is used properly to support our game within our zone through coaching and development".
However it "opposes imposition of an individual player insurance levy, and insists that the present system of team based insurance can remain".
Whereas clubs had previously paid around $1800 a year on insurance, under the new scheme, Veenstra said they were facing bills of $3600 and he said the CWRU wouldn't stand for it.
"We won't embrace individual insurance. It's a massive impost on clubs and players and we are particularly concerned about what it would mean for small clubs. If they have 50 or 60 players, they would be looking at a cost of $3600, a 100 per cent increase on last year," he said.
"You might have players there who will only play two or three games and teams that are struggling to get 25 players for a game.
Mr Veenstra said there was the additional risk that players could take the field without insurance and that could leave clubs and competitions at risk.
"If you have a player that goes onto the field without insurance and gets injured or injures somebody else, we're not covered," he said.
"We have a duty of care to players, officials, club officials and if the insurance is for a team as a whole, you know that everybody running out onto the field is properly covered."
The CWRU's stance has been backed by the Country Rugby Union and NSW Rugby Union, who are also vowing not to sign up to the new proposal. Earlier this week NSWRU chairman Nick Farr-Jones wrote to ARU chairman Bill Pulver and said his organisation would collect the NPF but would take responsibility for insurance for NSW competitions unless the ARU changes its stance.
Veenstra wouldn't be drawn on what effect the introduction of the NILS would have on the CWRU because it would never be introduced. He also said the issue would have no impact on the 2015 competition.
"It's up to the ARU [when it will be resolved]. The NSWRU is waiting for a reply and once a response has been delivered, we will know what that will mean. I expect this will be resolved fairly quickly, I think the ARU will respond before the new year," he said.