More than 500 insurance claim disputes remain unresolved almost two years after one of Australia’s most destructive spates of natural disasters.

The Financial Ombudsman Service (FOS) has been asked to mediate 1772 disputes from last year’s Queensland floods, Victorian floods, Cyclone Yasi and the Christmas Day hailstorms in Melbourne.

About 30% remain unresolved, although General Insurance Ombudsman John Price says the service hopes to deal with these early next year.

“FOS is still receiving between 40 and 50 new disputes per month relating to these natural disasters, particularly the floods,” he told insuranceNEWS.com.au. “At this stage we are unable to predict when all disputes will be resolved.

“But it is hoped all existing disputes with FOS will be resolved in the first half of 2013.”

Five separate weather events cost insurers a combined $4.81 billion in claims last year, with flooding in Queensland ($2.8 billion) and Cyclone Yasi ($1.4 billion) the main culprits.

Mr Price says resolving disputes is time-consuming because every case is different.

“Each individual dispute that comes to FOS can be quite complex and the outcome will depend on its own unique facts,” he said.

“The resolution of any dispute depends upon the particular facts involved, including the location, topography, time of inundation and policy wording.

“In reaching a determination the Ombudsman will look at all available information provided by the parties and, in many circumstances, will conduct site visits to review the damage first-hand.”

FOS has been dealing with flood disputes since April last year.

“A small number of residual claims remain,” an Insurance Council of Australia (ICA) spokesman told insuranceNEWS.com.au. “Some involve complex engineering and rebuilding and others involve dispute resolution.

“Insurers have paid about $3.55 billion through building services and cash settlements to community members for these combined events, helping individuals, communities and businesses to recover.”

ICA Special Risks Manager Laurie Ratz has been holding pre-cyclone season briefings in north Queensland to help people better understand their policies.