CGU under pressure on flood claims
IAG subsidiary CGU Insurance has copped a media broadside for rejecting claims in Victoria’s flood-ravaged Gippsland region.
Residents in Newry have lodged complaints with the Insurance Council of Australia and the Insurance Ombudsman after CGU turned down their claims. The State Government is also urging residents to dip into a specially created “fighting fund” to cover legal expenses when pursuing claims.
CGU’s decision to reject claims isolates it within IAG, as fellow subsidiary RACV Insurance is reportedly paying residents living just metres away from those CGU rejected.
CGU Head of Claims Phil Gare says the company has paid nearly 200 claims to Gippsland residents, and rejections are in the minority. About 220 claims from the Gippsland region have been received by CGU. Ten have been knocked back and 15 are under review.
Mr Gare says CGU has to do the right thing by the rest of its policyholders.
“We are sticking to our policies, and if there is a grey area in the claim we will pay the claim. When we process a claim, we make sure we go through all the steps of the process.”
Water Minister Tim Holding – who obviously hasn’t heard of the Insurance Ombudsman Service – has encouraged the rejected policyholders to use a Victorian Government legal fund to pursue claims through the courts if necessary. But Mr Gare says local politicians are more understanding of insurers’ issues.
“I’ve spoken to Philip Davis (Eastern Victoria MLC), Peter Ryan (Gippsland South MLA) and Peter Hall (Eastern Victoria MLC) and they understand our position,” he said. “Obviously they would like us to pay all the claims.”
Residents in Newry have lodged complaints with the Insurance Council of Australia and the Insurance Ombudsman after CGU turned down their claims. The State Government is also urging residents to dip into a specially created “fighting fund” to cover legal expenses when pursuing claims.
CGU’s decision to reject claims isolates it within IAG, as fellow subsidiary RACV Insurance is reportedly paying residents living just metres away from those CGU rejected.
CGU Head of Claims Phil Gare says the company has paid nearly 200 claims to Gippsland residents, and rejections are in the minority. About 220 claims from the Gippsland region have been received by CGU. Ten have been knocked back and 15 are under review.
Mr Gare says CGU has to do the right thing by the rest of its policyholders.
“We are sticking to our policies, and if there is a grey area in the claim we will pay the claim. When we process a claim, we make sure we go through all the steps of the process.”
Water Minister Tim Holding – who obviously hasn’t heard of the Insurance Ombudsman Service – has encouraged the rejected policyholders to use a Victorian Government legal fund to pursue claims through the courts if necessary. But Mr Gare says local politicians are more understanding of insurers’ issues.
“I’ve spoken to Philip Davis (Eastern Victoria MLC), Peter Ryan (Gippsland South MLA) and Peter Hall (Eastern Victoria MLC) and they understand our position,” he said. “Obviously they would like us to pay all the claims.”