Chris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

I rise to add my voice to those who have spoken on this motion of condolence and to give the House an update in relation to insurance matters in particular. As people return to their properties and try to put their shattered lives back together, they need to know that they are not alone. The speedy and compassionate resolution of insurance claims will be an important part of rebuilding these communities and of rebuilding lives.

As the Prime Minister has already outlined to the House, the government have been in regular contact with the Insurance Council of Australia and with some individual insurers over recent days. The government have made it clear that we expect insurers to act with compassion and understanding and in a flexible manner to process claims as quickly as possible. As of this morning there have been 4,100 insurance claims lodged. Insurers are putting claims staff and assessors on the ground as soon as possible and as access to affected areas is granted by the relevant authorities. I am informed that there are already several hundred assessors available to enter bushfire affected areas when permission is given.

The Insurance Council of Australia has also activated a catastrophe recovery task force to coordinate assistance to those who have concerns or questions about their insurance claims. The Master Builders Association has joined this task force to assist with the supply of trades and supplies for the rebuilding efforts. I have reminded insurers that the government expects insurers to have a strong presence on the ground in emergency centres and affected towns as access is made available. Last night, the Minister for Families, Housing, Community Services and Indigenous Affairs advised the Prime Minister and me that, while many relief centres have representation by insurance companies so that policyholders can lodge claims at those relief centres, there were some relief centres without that representation. Last night the Insurance Council undertook to remedy that situation. I am advised that, as of today, there should be representation by at least one insurance company at each relief centre and that the last relief centre to receive such a representative will receive one by tomorrow morning at the latest.

It is important that red tape and frustration for people making an insurance claim be minimised. To make this as easy as possible, the Insurance Council and the government have agreed that an insurance company that is represented at a relief centre will be able to accept claims on behalf of insurers who are not represented at that relief centre. They will also be able to process emergency payments from other insurers. The Insurance Council has developed a common claim form for victims of the Victorian fires. This will again make the process as easy as possible. The chairman of the ACCC has this morning advised me that the ACCC has no concerns with this arrangement under the Trade Practices Act, and it has been implemented.

The Insurance Council will act as the clearing house for these claims and will coordinate the processing of the claims. The council has assured me that the processing of these claims will commence within 24 hours of receipt. This means that victims of this disaster, no matter who they are insured with, simply have to approach the insurance representative on the spot, even if that representative is not from their company, to get their claim processed. The Insurance Council has also advised that insurers are allowing the lodgement of home and motor insurance claims over the phone and are providing upfront, emergency funds where required for food and clothing.

People who have suffered a property loss due to the bushfires should contact their insurer directly or by phone or contact the person in the emergency relief centres. They do not need to worry if their insurance documents are lost or destroyed; the insurer will have their details electronically and will usually require only the policyholder’s name and address and one or two other personal details in order to process the claim. I would advise that policyholders should also ask their insurer whether they are offering upfront payments for emergency food and clothing when they get in contact with their insurer.

The Chief Executive of the Insurance Council of Australia, Kerrie Kelly, has been on site in Victoria yesterday and today, and we are in very regular contact. On behalf of the House, I thank the Insurance Council for its cooperation.

In the event that bushfire victims are not treated appropriately by their insurer, there are arrangements in place to resolve disputes between policyholders and insurers. The Financial Ombudsman Service provides independent and free dispute resolution for insurance complaints. The Financial Ombudsman Service can investigate a dispute and issue a written decision which is binding on the insurer under the Corporations Act. We have been in regular contact with the Chief Ombudsman of the Financial Ombudsman Service, Colin Neave AM, over the last 48 hours. The Chief Ombudsman has arranged for a dedicated hotline for victims of the Victorian fires and the Queensland floods who experience difficulties with their insurers. This number for the fire and flood hotline is 1800337444, and it is operational from now. The Chief Ombudsman has also told me that there will be a dedicated team of senior officers dealing specifically with concerns arising out of the natural disasters. I believe the Financial Ombudsman Service is well known and respected by all honourable members—particularly, for example, the honourable member for Aston, who was involved in the establishment of the Financial Ombudsman Service—and I am sure all honourable members would agree that the Financial Ombudsman Service will provide a very valuable service, as it has in this and other natural disasters.

Experience from previous disasters, like the Canberra bushfires and previous flooding, indicates that there will be some cases that need to be referred to the ombudsman. In the past, this figure has been about one per cent of claims. The Chief Ombudsman has undertaken to keep me advised of progress and to provide me with a formal report quarterly on issues arising out of the Victorian fires, which I would be happy to table in the House. I repeat the Prime Minister’s request of yesterday: if any honourable member has constituents who are unhappy with the way they are being treated by their insurance company, they should please contact me directly. I will then personally raise the matter with the chief executive of the insurance company concerned, the Insurance Council or the chief financial ombudsman, as appropriate.

While I am at the dispatch box, I think it might be useful to members to very briefly inform the House of the assistance available from the Australian Taxation Office to victims of both the fires and the floods. The tax office is fast-tracking refunds, allowing more time to lodge activity statements or tax returns without incurring penalties, allowing additional time to pay tax debts without any interest charged, arranging for debts to be paid by instalments, helping reconstruct tax records where documents have been destroyed and omitting penalties or interest. Assistance is not limited to those people who are directly affected but will also be made available to others, such as business owners whose main income is derived from the affected areas, and also of course to volunteers in both the floods and the fires.

I would encourage people to contact the tax office at the appropriate time to make arrangements that meet their individual circumstances and give people the assurance that the Australian Taxation Office will show lenience in the short term while people are getting back on their feet. Again, in these extraordinary circumstances, if any honourable member has concerns about the way the tax office is dealing with an individual victim of these disasters, I would encourage that member to talk to me directly and I will raise the matter personally with the Commissioner of Taxation.

This has been a crisis for families in Victoria that has demanded an exceptional response from government agencies and emergency services. It also demands an exceptional response from insurance companies and other financial service providers. The government will continue to be actively involved with insurance companies and others to ensure that exceptional response is forthcoming.

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