Bushfire liability could reach $800 million
Power line failures caused at least six of the February Black Saturday bushfires, with insurers likely to become involved in damages claims worth up to $800 million, according to a leading Melbourne barrister.
Speaking at a bushfire liability discussion hosted by the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) last week, Melbourne barrister Tim Tobin QC claimed badly maintained power infrastructure was a critical factor in the fires.
He says low maintenance has been a problem since the Victorian power production and distribution industry was privatised in 1993.
“Maintenance is now a major concern in the country,” he said. “We know that some fires were caused by clashing wires – a totally avoidable event.
“In Horsham and Coleraine, conductors came off the pole. There is no dispute. The conductor has come down and people have seen the fires start.”
He says major blazes in Kinglake and Mudgegonga were also likely to be the subject of legal actions.
Mr Tobin is among a group of experienced bushfire litigators planning legal action against privately owned power companies. He says they can’t wait until the bushfires royal commission reports in July next year before bringing class action suits and individual writs. Such a delay would compromise victim compensation and access to vital evidence.
Mr Tobin says insurance companies are entitled to share in the legal recovery process, and praises the insurance industry for its handling of the disaster.
“This event is one that requires empathy with people affected,” he told the industry audience. “We were ready to have a go at you, but so far you’ve done a magnificent job.”
Speaking at a bushfire liability discussion hosted by the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) last week, Melbourne barrister Tim Tobin QC claimed badly maintained power infrastructure was a critical factor in the fires.
He says low maintenance has been a problem since the Victorian power production and distribution industry was privatised in 1993.
“Maintenance is now a major concern in the country,” he said. “We know that some fires were caused by clashing wires – a totally avoidable event.
“In Horsham and Coleraine, conductors came off the pole. There is no dispute. The conductor has come down and people have seen the fires start.”
He says major blazes in Kinglake and Mudgegonga were also likely to be the subject of legal actions.
Mr Tobin is among a group of experienced bushfire litigators planning legal action against privately owned power companies. He says they can’t wait until the bushfires royal commission reports in July next year before bringing class action suits and individual writs. Such a delay would compromise victim compensation and access to vital evidence.
Mr Tobin says insurance companies are entitled to share in the legal recovery process, and praises the insurance industry for its handling of the disaster.
“This event is one that requires empathy with people affected,” he told the industry audience. “We were ready to have a go at you, but so far you’ve done a magnificent job.”