Today is the last day of summer - and it is raining. In fact, we are promised torrential rain across a wide stretch of this state, and we are warned that there will be flooding as a result - and this follows other floods that have ravaged the city of Brisbane, wide areas of country Queensland and northern NSW. It may be just a freak phenomenon, or as some suggest - this may be the way of the future as a result of global warming.
One thing that has not changed is the unhappy experience those affected by floods are having with their insurance companies. When a property is damaged by fire there is little opportunity for an insurer to duck and dodge delivering a payment, but when water is involved a whole new set of interpretations come into play. That is the time insurers start citing the conditions in fine print in their policies.
What is discouraging is to watch the news on television and see the hand written signs being displayed by those who have had claims rejected. The names of the insurance companies involved are the same ones who reneged here in Wollongong way back after the big rain storm of 1998 - and who closed their offices here and walked away, leaving many policyholders destitute.
At that time, all levels of government promised a crackdown on shonky insurance companies. There was talk of imposing a common definition of water damage to define clearly the difference between " flood " and " storm " - and to insist that each and every policy contain a statement in clear, precise English stating exactly what is - and what is not - covered in that policy.
Obviously - that has not happened !
There are literally hundreds of insurance companies operating under multi names here in Australia. In past decades insurance has been a very profitable business. Most of the big companies are reputable and perform to a high standard, but there are some who cream off profits in periods of stable weather - and duck for cover and close their doors when an adverse weather cycle hits those profits.
A glance at the stock exchange price of insurance shares should be a warning to most people that few insurers are making a healthy profit in this present weather cycle, and as a result they are all tightening their belts and insisting on vetting every claim with a fine tooth comb. What does not help is the lack of clear rules that apply - to protect policyholders and ensure that legitimate claims are not summarily rejected.
Each insurance company seems free to write it's own policy conditions - and to act as both judge and jury when it comes to decisions on claims. It is time for the government to set a uniform code that will apply to all insurers - with no if's, but's or maybe's.
Right now, it would be a sure bet that insurance premiums are set to rise at the next renewal, and if such a common policy is forced on the insurers the premium will rise further, but the great leveller is competition - and at least that will remove the uncertainty about whether the lowest premium price is also an indication that a claim will get dodgy treatment.
Governments of all political persuasions have been making cleanup promises for many decades. Time to demand that they deliver the goods !
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