Insurers in Victoria’s flooded Gippsland region are finding themselves caught in a classic political pincer movement, with Premier Steve Bracks accusing them yesterday of not being as sympathetic with flood victims in his state as they have been with storm victims in NSW.

Touring the Gippsland area yesterday, Mr Bracks said he had been assured by the Insurance Council of Australia that claims would be treated “sympathetically”.

“I’m very disturbed to hear the reports about some companies who may not be adhering to that and I’ll be going back to them,” he said.

Television news reports this morning also suggested Wesfarmers’ insurance arm would try to avoid paying claims because it is involved in a $22 billion purchase of retailer Coles.

The Victorian Government’s flood recovery ministerial taskforce is expected to announce a package today worth about $40 million to rebuild infrastructure in the area.