The Executive Director and CEO of the ICA, Rob Whelan, expressed concern that the review may frighten people away from obtaining urgent flood insurance. “We don’t want a situation to arise where people do not have appropriate cover for their property because they were put-off by an irresponsible review,” Mr Whelan said.
“There have been around 130,000 claims lodged as a result of the flooding and cyclone in Queensland last summer and there are only 725 disputes being managed. “Those with a flood risk should be responsibly encouraged to purchase flood insurance and not leave themselves unprotected,” he said.
“In 2008 the insurance industry agreed to a standard flood definition, but it was rejected by the ACCC at the time. “The industry called for a standard definition of flood in its submission to the Natural Disaster Insurance Review and is awaiting approval by the Federal Government.
“The ICA has worked hard with the Federal Government to make insurance more easily understandable for policy holders. “We also want all policies to come with ‘Key Facts’ sheets, which will outline what is covered by each policy, making them more easily understood by consumers. “Of course, if consumers have any concerns they should call their insurer or insurance broker and clarify any issues.”
The ICA had highlighted the importance of providing information to consumers in its submission to the NDIR. “We have been delighted with the recent flurry of flood mapping information that has been released,” Mr Whelan said.
“The Queensland Government, Ipswich Council and HardenUp have all provided data that will help develop a standardised approach to floodplain management. “We need to refocus efforts on reducing the occurrence of flood through mitigation, the improvement of building codes and better land-use planning. “Handing out dummy awards is not a solution it’s a stunt. It’s not worthy of Choice”, Mr Whelan said.
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