Simon Birmingham SA, Liberal Party, Shadow Parliamentary Secretary for the Murray Darling Basin
2:27 pm
My question is to the Minister for Climate Change, Energy Efficiency and Water, Senator Wong. Has the minister or the Minister Assisting the Minister, Mr Combet, met with representatives of the Insurance Council of Australia or the insurance industry to discuss the home insurance crisis facing the 1.1 million Australian homeowners who participated in Rudd Labor’s disastrous Home Insulation Program?
Penny Wong SA, Australian Labor Party, Minister for Climate Change and Water
I thank Senator Birmingham for the question. Minister Combet has in fact released a media release about this issue immediately prior to question time. The senator may not have had the opportunity—
Eric Abetz Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate
Released a media release—they are just words—
John Hogg President
Order! Senator Wong, ignore the interjection and address your comments to the chair.
Penny Wong SA, Australian Labor Party, Minister for Climate Change and Water
I thought it might be useful, given I have been asked what the minister has done, to refer to what the minister has done. He has indicated in his statement that there has been some media reporting about home insurance for people who have had their house insulated. The minister has indicated that he is advised that the Insurance Council of Australia is not aware of any cases where an insurer has refused insurance due to the installation of insulation under the Home Insulation Program. In relation to one case, which has been the subject of media reporting today—15 March—suggesting that NRMA refused to insure houses that had insulation installed under the program, the minister has referred to the fact that an NRMA spokesperson has confirmed it was not the policy of the company to ask questions about the installation policy as part of any risk assessment process.
Eric Abetz Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate
Penny Wong SA, Australian Labor Party, Minister for Climate Change and Water
That is probably a question, Senator Abetz, that should be addressed to the NRMA. In regards to their own insurance policies, the minister has indicated that households should consider their personal individual circumstances and make informed decisions regarding their personal situation. Obviously, the specific circumstances in relation to insurance will depend on the nature of the householder’s insurance policy, on the circumstances of installation—that is, who did it, whether they did it correctly and according to appropriate standards—and if they provided a warranty. The minister has also indicated that it appears that the case that was reported in the media today was in relation to a household which requested and received a phase 3 safety inspection. (Time expired)
Simon Birmingham SA, Liberal Party, Shadow Parliamentary Secretary for the Murray Darling Basin
Mr President, I thank the minister for that information and I ask a supplementary question. From the discussions that Minister Combet has clearly had with the insurance industry, can the minister give an assurance that no homeowner who participated in the Home Insulation Program will be left without appropriate insurance coverage in the event that they suffer from an insulation related house fire?
Penny Wong SA, Australian Labor Party, Minister for Climate Change and Water
As I have said, the minister has indicated that his advice is that the Insurance Council of Australia is not aware of any cases where an insurer has refused insurance due to the installation of insulation under the Home—
George Brandis Queensland, Liberal Party, Shadow Attorney-General
Why would they necessarily be aware? That’s not an answer!
Penny Wong SA, Australian Labor Party, Minister for Climate Change and Water
Thank you, Mr President. I will just repeat what I was saying: as I previously indicated, the minister has advised that the Insurance Council of Australia is not aware of any cases where an insurer has refused insurance due to the installation of insulation under the Home Insulation Program. I think that the advice given by the Insurance Council is clear. I am not sure that I can add to it in terms of what the status is under relevant insurance policies, which appears to be the direction of the question.
Simon Birmingham SA, Liberal Party, Shadow Parliamentary Secretary for the Murray Darling Basin
Mr President, I ask a further supplementary question. The minister indicated in the original answer, and again in that one, that with individual insurance policies there may be the matter of question as to whether homeowners would be covered in the event they have a home insulation fire. What comfort is there to homeowners who are not part of the ‘lucky’ 15 per cent who will get random audits that their home will still be covered in the event that they suffer from such a fire?
Penny Wong SA, Australian Labor Party, Minister for Climate Change and Water
With respect, Mr President, I am not sure how much of a supplementary that is. That is a question about the audit process, not a question about the availability of insurance to insured homes and the relevance of the Home Insulation Program. I have made clear what the minister’s advice is in relation to the availability of home insurance. I have also indicated in this place previously, with reference to Minister Combet—
George Brandis Queensland, Liberal Party, Shadow Attorney-General
Are you an insurance sceptic, Penny?
Penny Wong SA, Australian Labor Party, Minister for Climate Change and Water
George used to be a moderate, but that was a while ago. He worked out which way his career would be better off, so very principled over there on the front bench.
Penny Wong SA, Australian Labor Party, Minister for Climate Change and Water
I previously indicated in this place the minister has outlined his insurance—
Unidentified interjection - Hansard doesn't record who said this
Honourable Senators:
Honourable senators interjecting—
Stephen Conroy Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate
He’s always been pompous though!
Penny Wong SA, Australian Labor Party, Minister for Climate Change and Water
Yes, that is true. Pomposity does not know any factional basis. As I was saying, in relation to the audit process and inspection process, I have previously outlined in this place the way in which Minister Combet is approaching that issue in relation to both foil and non-foil properties. (Time expired)