INQUIRY TO SHINE A SPOTLIGHT ON SHOCKING INSURANCE PRACTICES IN DISASTER-HIT COMMUNITIES
The Independent Federal Member for Calare, Andrew Gee, has welcomed the announcement that the federal government will launch a parliamentary inquiry into the response of insurers to the 2022 storm and flood events including those that occurred in Central Western NSW.
“Since this disaster hit our region, we have heard many stories of heartache and heartbreak from local residents and business people who have had their homes and livelihoods destroyed,” said Mr Gee.
“Communities like Eugowra, Molong, Canowindra, Cudal and Wellington were devastated by November's storm and flood events.
“The rebuilding and recovery process has been made much harder, and tragedy much worse, by the cold-hearted and shocking response of insurers to policyholders.
“The anger in our communities is white hot, and I don't think we are alone, with other regions across Australia left reeling from the callous conduct of insurance companies. From long delays in claims processing, to widespread knockbacks. It’s taken a huge toll across our region.
“The reality is that there is a massive power imbalance between policy holders and insurance companies.
“At the end of the day, if a policy holder wants to fight a knockback from an insurer, they’re going to need to fork out big dollars for an expert hydrology report and also a solicitor. If you’ve lost everything or your business is in ruins, there is just no prospect of fighting back.
“The stories of insurers trying to do the right thing are sadly few and far between.
“Australians expect insurers to be assessing claims in a generous and kind-hearted way, nothing less.
“Insurance companies don't just answer to shareholders, but also the nation. They don't just have insurance contracts with our residents, they also operate with a social licence.
“We need to get to the bottom of what's happened here and make sure the pain that insurance companies have inflicted on our communities is not repeated in others.
“I’m hoping that this inquiry can shine a spotlight on the experience of our local residents and that they will get a chance to tell their stories on a national stage so that other communities won’t have to go through what we have endured.
“The stories that emerged from recent public meetings I’ve held on insurance claims have been deeply troubling.
“I am grateful to the Prime Minister and also to the Minister for Financial Services and Assistant Treasurer for answering our communities’ calls for an inquiry.
“When I asked the Prime Minister in Question Time in May whether he would support an inquiry, he indicated that he would consider it and he has done what he said he would do.
“I’m hoping that this inquiry will be a watershed moment in the way that insurers deal with disaster-hit policy holders.
“Change needs to come from this immense tragedy and devastation.
“I think it’s important that the Minister has not only travelled to our area to hear first-hand what our residents have been through but that he has also come and delivered a tangible result. It’s certainly more than just a photo opportunity,” Mr Gee said.
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Media contact: Sinead Fogarty – 0417 852 386