Bushfire underinsurance adds traction to non-insurance fight
The insurance industry is demanding state governments act to reverse policies that promote underinsurance and non-insurance.
And the Insurance Council of Australia has opened up a new front in the battle for more affordable property insurance, reportedly calling for mandatory home and contents cover in fire-prone regions. Its research shows up to 30% of Victorian households do not have any home and contents insurance.
Weekend newspapers in NSW and Victoria took up the issue of insurance taxes – especially the controversial fire services levy – with reports highlighting the Insurance Council of Australia’s (ICA) belief that blanket aid paid to Victorian bushfire victims does nothing to solve Australia’s significant underinsurance burden.
In an article run in the Sydney Morning Herald on Saturday and picked up in Melbourne’s The Age yesterday, ICA spokesman Paul Giles questioned how much money from the bushfire appeal should be available to uninsured residents.
“Why would you pay insurance premiums for 15 years when you know the bloke next door is going to get his home rebuilt to the same standard or higher?”
Victorian Farmers Federation President Simon Ramsay agrees. “There is an expectation the whole community pay or fund the fire services through taxes,” he told insuranceNEWS.com.au.
Mr Ramsay says insurance taxes are a heavy burden on the Victorian farming community.
“The state government has argued underinsurance is less than 10% and the fire levy is fair and equitable. I think we're now seeing that is not the case.
“The Government says it is able to bill people who are uninsured for the fire services. I haven't ever heard of any uninsured person being given an account.”
The National Insurance Brokers Association (NIBA) says the NSW and Victorian governments have sufficient evidence that the affordability of home and contents insurance is affected by state taxes, and shouldn’t wait for the results of the bushfires royal commission before acting to eliminate them.
“Insurance taxes penalise policyholders and demand no contribution from those in the community who don’t insure,” NIBA CEO Noel Pettersen said today. “Insurance isn’t a sin. They shouldn’t be able to tax insurance at the same rate they do alcohol, or tobacco or gambling.
“It’s a ridiculous and unfair situation and it must change urgently for the economic wellbeing of the community.”
Victoria remains on high alert today with high temperatures and strong winds forecast across the state tomorrow.
And the Insurance Council of Australia has opened up a new front in the battle for more affordable property insurance, reportedly calling for mandatory home and contents cover in fire-prone regions. Its research shows up to 30% of Victorian households do not have any home and contents insurance.
Weekend newspapers in NSW and Victoria took up the issue of insurance taxes – especially the controversial fire services levy – with reports highlighting the Insurance Council of Australia’s (ICA) belief that blanket aid paid to Victorian bushfire victims does nothing to solve Australia’s significant underinsurance burden.
In an article run in the Sydney Morning Herald on Saturday and picked up in Melbourne’s The Age yesterday, ICA spokesman Paul Giles questioned how much money from the bushfire appeal should be available to uninsured residents.
“Why would you pay insurance premiums for 15 years when you know the bloke next door is going to get his home rebuilt to the same standard or higher?”
Victorian Farmers Federation President Simon Ramsay agrees. “There is an expectation the whole community pay or fund the fire services through taxes,” he told insuranceNEWS.com.au.
Mr Ramsay says insurance taxes are a heavy burden on the Victorian farming community.
“The state government has argued underinsurance is less than 10% and the fire levy is fair and equitable. I think we're now seeing that is not the case.
“The Government says it is able to bill people who are uninsured for the fire services. I haven't ever heard of any uninsured person being given an account.”
The National Insurance Brokers Association (NIBA) says the NSW and Victorian governments have sufficient evidence that the affordability of home and contents insurance is affected by state taxes, and shouldn’t wait for the results of the bushfires royal commission before acting to eliminate them.
“Insurance taxes penalise policyholders and demand no contribution from those in the community who don’t insure,” NIBA CEO Noel Pettersen said today. “Insurance isn’t a sin. They shouldn’t be able to tax insurance at the same rate they do alcohol, or tobacco or gambling.
“It’s a ridiculous and unfair situation and it must change urgently for the economic wellbeing of the community.”
Victoria remains on high alert today with high temperatures and strong winds forecast across the state tomorrow.