Graham Perrett (Moreton, Australian Labor Party) Share this | Link to this | Hansard source

It is now around three months since the tragic floods ripped through my electorate, damaging or destroying 4,200 homes and, unfortunately, more than 1,000 businesses. Some of those were quite significant businesses, employing up to 3,000 people. Whilst I have seen the devastation of Japan and Christchurch—and I am thankful I do not represent an electorate in those areas—nevertheless it is still quite devastating to go around my electorate and see the damage that occurred.

Three months on, most people are still waiting for their houses to dry out and for the rebuilding to begin. You can still drive down the streets and see straight through houses where things have been ripped out and where they are just waiting for the insurance to kick in or not. For many of these people the novelty of staying at another family’s house or in a friend’s garage or living in a house without walls and floor coverings or in a caravan out the back or parked out the front is wearing very thin.

Many are still waiting for insurers to finalise their assessments, and many of my constituents are dealing with the news that they have received from their insurer that they are on their own. Insurance companies like NRMA, Alliance and CGU, to name but three that have been particularly brought to my attention by my constituents, have left too many of their loyal long-time policyholders out to dry. Imagine what it is like after you have been paying insurance premiums religiously—for many people for decades, especially since the 1974 floods when people took out flood insurance—to be told by your insurer that you have been abandoned just when you needed help the most. Most of us do not have much left over after we pay the mortgage, the utilities and other household expenses, so imagine what it is like if you have been flooded. You still have to pay your mortgage, and some people, unfortunately, still have to pay their rent. You also have to find money to rebuild your house and somehow find money to pay rent for your family if you are living in alternative accommodation rather than at a friend’s house. This is next to impossible; impossible for these people who have been devastated to get ahead or to get their head above water, so to speak—a horrible metaphor. Insurance companies must get on with the assessments and support the rebuilding as quickly as possible.

I want to particularly single out NRMA, which was very, very quick to engage its expert hydrologists and issue the reports to claimants accompanied by the rejection letter that many of my constituents received. It was little comfort for the flood victims to find out that they would not be covered because of the hydrologists’ assessment of the type of water that occurred. If you live in Queensland you would see the NRMA ads. They often have a couple of Broncos—which is a Brisbane rugby league side. NRMA is a New South Wales company that is trying to make inroads into Queensland and uses the Broncos in its advertisements. You need to do a little more than just put on a couple of Broncos jerseys to show loyalty to Queensland, I would suggest. It is no wonder that many of my constituents who are flood victims are fed up and furious with these insurers.

For those people who had no expectation of insurance, thankfully there is the Premier’s Disaster Relief Appeal to assist them, and often the kindness of strangers. I have mentioned previously in the House some of the wonderful organisations that have actually given to cash people—like Buddhist and tai chi organisations and quite a few others. But for those who were bedazzled by the fine print in their insurance document and have found themselves without cover, it is time for these insurers like NRMA, Allianz and CGU to show some heart and pay up.

To be fair, there are some insurance companies that have not deserted their policy holders. I will mention two companies, Suncorp and Westpac, which, it has been reported back to me by my constituents, have done the right thing. In fact, I spoke to a bloke today who was flooded who described Westpac as ‘absolutely brilliant’. So I will give some praise where it is due. We have seen great examples of cooperation and goodwill from some insurers, but we have also seen some disgraceful behaviour. As a lawyer, I understand that they have to look at the contract. But there are certainly some pretty sharp practices going on out there, especially when I see the heartache of people who were flooded in 1974 and flooded again in 2011. Many of them are absolutely heartbroken.

I welcome the support we have received from Assistant Treasurer Bill Shorten. He is doing some great work. I think he will be in Ipswich early in April—and I look forward to the insurance companies turning up. I welcome the review that he has announced into the insurance industry and look forward to a standard definition of ‘flood’ so that people do not get caught out in the future. (Time expired)