Bob Katter calls for ASIC bosses to be sacked over insurance disaster in Far North Queensland

The federal MP says about one in four homes in a flood-devastated region is not insured and hit out at the reason why.

Federal MP Bob Katter has called for the heads of Australia’s financial services regulator to be sacked after claiming they failed to protect vulnerable flood victims in Far North Queensland.

Mr Katter said thousands of properties destroyed in the wake of Tropical Cyclone Jasper were not insured and blamed the Australian Securities and Investments Commission (ASIC) for failing to stop insurance companies from pushing up their fees.

“I am sick and tired of these people being paid $565,000 a year and all they had to do was get off their backside and ensure that the benefit that the government had put out there – the reinsurance pool – flowed onto the people,” Mr Katter said.

“They sat on their fat backsides in Canberra and did nothing.”

Countless homes have been damaged or destroyed in Far North Queensland since Tropical Cyclone Jasper. Picture: Supplied

The federal government’s $10bn reinsurance pool covers the cost of insurers’ payouts to affected customers within the first 48 hours of a cyclone being downgraded.

The system has faced mounting criticisms in the wake of Cyclone Jasper, as floodwaters and intense rainfall persisted in the days after the set deadline.

Mr Katter claimed insurance companies had been able to get away with “collusive behaviour” due to a lack of oversight from the federal regulator.

He said tens of thousands had lost everything in the wake of the disaster.

“Everything they own – their cars gone, all the furnishings in their house gone, the house is damaged to a point where they can’t afford to repair the house – it’s all gone,” Mr Katter said.

Bob Katter (left), with transport company owner Les Blennerhassett, said the reinsurance pool scheme ‘just didn’t work’. Picture: Scott Radford-Chisholm

“It should have been covered by insurance, and who’s fault was it? ASIC’s fault. So I will spend a significant portion of next year having the heads of ASIC sacked.”

The Insurance Council of Australia declared the cyclone a “significant event” after reporting that more than 3800 insurance claims had been lodged in the days before Christmas.

In a statement, ASIC Commissioner Alan Kirkland urged individuals impacted by flooding to be on the lookout for unscrupulous operators in the aftermath of natural disasters.

“Be wary of anyone who asks for payment upfront or who asks you to sign a contract immediately,” he said.

“Do not agree to sign anything that prevents you from dealing directly with your insurer or broker. If in doubt, contact your insurer directly using the phone number on your policy documents or on their main website.”