Sarah Henderson (Corangamite, Liberal Party) Share this | Link to this | Hansard source

On Christmas Day last year, the communities of Wye River and Separation Creek, nestled in steep hills on the Great Ocean Road between Lorne and Apollo Bay in the Corangamite electorate, were devastated by a terrible bushfire. One hundred and 16 homes were lost, and many were damaged. It was a miracle no-one was killed. But for the incredible planning of emergency services including the Wye River CFA, led by Captain Roy Moriarty, tragedy could have so easily occurred.

Under the National Disaster Relief and Recovery Arrangements, the Commonwealth has contributed almost $4 million to the cost of the clean-up, infrastructure repair works and emergency payments.

Recovery has been long and slow. Many businesses have suffered, particularly in Wye and Apollo Bay. The Great Ocean Road has been closed for a total of some 46 days since last Christmas, most recently because of floods and landslides and the ongoing threat of a major landslip at Paddy's Path, between Wye and Sep. A large wall is now under construction there in an attempt to keep the road open and safe.

As part of the Turnbull Government's $25 million contribution to a $50 million Great Ocean Road upgrade in partnership with the previous state Liberal government, the Separation Creek bridge is being rebuilt at a cost of $4 million. Proudly, we have committed another $25 million to the Great Ocean Road upgrade, but, very regrettably, the Andrews Labor government continues to turn its back on this iconic tourist attraction and refuses to match this funding.

Last week I visited Wye River , on a magnificent spring day. Many people are preparing to rebuild in this magical part of the world. But there is one group of homeowners , including Geelong photographer Mark Strachan , who are battling yet another injustice. They were unlucky enough to have taken out a total replacement p olicy for their home with AAMI i nsurance, owned by Suncorp. A AMI's treatment of these policy holders has been nothing short of disgraceful. AAMI's complete replacement cover is meant to take all the worry away. In its promotional material, it states :

If your home is damaged or destroyed by an insured event, we'll repair or build it no matter the cost to us.

The problem is AAMI will not rebuild the home itself—the policy does offer this discretion—and it is refusing to provide sufficient money to cover the cost of the rebuild.

In at least six cases, AAMI is underquoting the cost of the rebuild by between an estimated $100,000 and $250,000. In a number of cases, AAMI will only reveal the lowest quote to rebuild and refuses to release any funds so p olicyholders can get architect plans drawn up , which is required for an independent costing. It is using companies which have no local knowledge of the terrain and the complexity of building to the required BAL , or bushfire attack level. These companies also carry none of the risk of reb uilding, meaning there are no consequences for them for underquoting or not providing sufficient contingency.

Home owners are paying mortgages for homes which do not exist , and nearly 11 months on they are still in dispute, being forced to the wall by an insurer that is, frankly, trying to screw them—excuse the language, but that is what they are doing, Mr Speaker—at every turn.

Another case involves a woman who is a permanent resident but cannot move back into her badly damaged home because AAMI will not provide sufficient funds to repair it. She does not want to be named , but she told me: ' I had carried their premium total replacement insurance for many years with never a claim. Depressed, homeless, staying with friends after having worked hard all my life for my own little home near the coast. It is AAMI, not the fires, which have taken that all away.'

As but one example, AAMI's scope of works for each proposed rebuild contains an estimate for waste water works . AAMI's quote is $ 16 ½ thousand, but the real cost , according to reputable local builders , is between $50,000 and $60,000.

AAMI is willing to discuss these claims , and I am meeting with AAMI this week. But, frankly , after almost a year, the time for talk is over. Mark and the other policy holders have been ex tremely unlucky to be with AAMI, and the full cost of the rebuild, along with compensation for lost interest, earnings and costs must be paid as a matter of urgency. Justice must be done.