In the total workforce system, this includes a member in Service categories 3, 4, 5 and 7. It also includes employees in Service category 1 through the operation of subsection F6.1 of the Defence Enterprise Collective Agreement 2024. A member in Service category 6 is unlikely to perform duty overseas.

Example 1: The member has underinsured possessions worth AUD 10,000. The possessions are destroyed in an earthquake. The insurer pays AUD 5,000. The member could have fully insured against earthquake damage at reasonable cost. The member gets no payment under this section.

Example 2: Possessions worth AUD 20,000 are destroyed in a civil war. Insurance cover for acts of war is not available at the posting location. The member gets the full amount under this section.

Example: A member owned a vehicle for two years. The original value was AUD 50,000. After two years, the CDF decided it had depreciated AUD 15,000. Its estimated residual value is therefore AUD 35,000.