The Insurance Council of Australia says insurers are entitled to seek the recovery of costs if negligence is proved against the ACT government after nine vehicles sustained damage, some burnt out completely, during the grass fire at Exhibition Park on the Spilt Milk weekend.
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Multiple fire crews were called when a grass fire broke out in the car park at Exhibition Park on November 26 within the northern carpark off Wells Station Rd.
It took about half an hour to quell the blaze which threatened to engulf many more vehicles. A section of the security fence had to be cut down for fire crews to gain access. Three of the burnt out cars still remain at the scene, draped in ACT Fire and Rescue tape.
While fire investigators with the ACT Emergency Services Agency have said the cause of the fire is "undetermined", they added that "the most likely cause of ignition is heat from a vehicle exhaust igniting grass clippings".
The NRMA, which is the biggest vehicle insurer in the ACT, so far has only received one total loss claim thus far as a result of the Exhibition Park grass fire but more are expected.
A spokesperson from IAG, the insurance arm of the NRMA, said that the company is yet to determine what further action will be taken given the circumstances surrounding the vehicle loss.
Exhaust systems starting grass fires is not uncommon across rural Australia; dozens of combine harvesters catch fire every year while operating in ultra-dry wheat fields, and Victoria's Country Fire Authority describes the risk of starting a fire from a hot exhaust system as "high".
"Even pulling over into grass at the side of the road could start a serious grassfire without you even being aware." the authority has warned.
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Keeping grass height at low levels within the Exhibition Park carparks in readiness for big events is one of the regular requirements for Summernats. It appears that, in this circumstance, the carpark grass had reached a significant height, then been cut ahead of the festival, and the clippings left to dry where they fell. This could have increased the potential contact between the grass and the underbodies of the parked cars.
Should the liability issue be pursued in court and insurers seek to recover costs on the grounds of negligence on the part of the ACT government, one of the legal points of argument would be whether a sign hanging on the security fence at Exhibition Park, warning that parking is at the vehicle owner's risk, absolves the ACT government of any liability.
Previous such arguments has found these types of signs offer little legal defence against property liability.
The Canberra Times has submitted a Freedom of Information request seeking to obtain the Risk Management Strategy submitted prior to Spilt Milk.
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