Brought to you by:

Bligh wants insurers to adopt flood definition now

Queensland Premier Anna Bligh has called on insurers to adopt the proposed standard flood definitions before it becomes law.

She acknowledges that it will be months before the Federal Government can pass the necessary legislation to make the definition law, but says insurers should adopt it now to avoid the “tricky wording” of some policies.

The Government announced on November 14 that it will release draft regulations about the standard definition for consultation by the end of the year.

But Ms Bligh told the Queensland Parliament last week there is “absolutely no prohibition on any insurance company accepting that new definition on a voluntary basis”.

She says she has written to the Insurance Council of Australia (ICA) urging insurers to adopt the changes ahead of what is forecast to be another wet summer.

“If they did that before the next wet season we would find more Queenslanders protected in the event that we do see this kind of flooding.”

ICA told insuranceNEWS.com.au in August that the industry had accepted the standard definition two months earlier. However, it’s understood that formal government commitment to the definition would probably be needed before insurers make the necessary changes to policies.

“I have called on the industry to respond, either collectively or individually as companies, in support of voluntarily adopting the Commonwealth’s proposed definition as soon as possible,” Ms Bligh said.