‘Fraud and collusion’: FNQ cyclone victims denied insurance compensation
Bob Katter has accused insurance companies of “fraud and collusion” claiming providers have denied thousands of cyclone victims compensation over “ridiculous” technicalities.
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Bob Katter has accused insurance companies of committing “fraud and collusion” claiming the providers have denied thousands of cyclone victims compensation over “ridiculous and pedantic” technicalities.
The Federal Member for Kennedy slammed the companies for leaving residents in his electorate in the lurch weeks after the devastating ex-TC Jasper smashed the north Queensland coastline.
Mr Katter said Far North residents were forced to pay four times the amount in insurance premiums to those in the South East, fees that thousands of families were unable to afford.
He said recent surveys showed one in four residents were unable to afford insurance and went without.
But even those with cover had been left hanging by “collusive” behaviour of insurance companies who he claimed had denied payouts due to technicalities.
“You can have a freezer that’s floating in the yard, but according to the insurance companies, there’s been no water in the house,” Mr Katter said.
“People with cyclone insurance are being told the damage wasn’t from the cyclone, but (instead) by the rain event that followed.
“It’s the most ridiculous, outrageous and pedantic behaviour from these companies and in my eyes, it’s fraud and collusion.”
Mr Katter took aim at all providers bar Sure Insurance and Allianz Insurance.
Further, he called for public servants in the Australian Securities and Investments Commission to be sacked over a failure to protect vulnerable flood victims.
He blamed the country’s financial insurance watchdog for failing to ensure the benefits of the reinsurance pool flowed onto people.
The $10bn cyclone reinsurance pool - or insurance for insurers - was meant to lower premiums in Northern Australia.
He said it had done anything but.
“It’s a complete failure by ASIC to enforce corporate law on these companies, and these public servants responsible should be prosecuted,” he said.
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