ICA backs $50,000 ‘fair and compassionate’ bushfire grant
The Insurance Council of Australia (ICA) has backed the decision to grant blanket $50,000 payments to all owners of homes destroyed by the Victorian bushfires.
The decision means people who are insured will be treated in the same way as the uninsured – a situation that has caused heated media debate in Victoria.
However, uninsured victims may be able to made an additional claim through a special means-tested grant.
More than $130 million in donations to the Bushfire Appeal Fund will be distributed to people whose houses were destroyed or partially destroyed in the bushfires.
Owners of destroyed homes will get $50,000, comprising a $35,000 rebuilding grant and $15,000 to replace contents. Tenants of rented properties will receive $15,000.
People who have relocated due to partial destruction of their homes will receive $15,000 for costs associated with repairs and rebuilding.
ICA says the decision by the appeal fund controllers and the Victorian Government treats the insured and the uninsured “fairly and with compassion”.
“Today’s announcement is excellent news for those people affected by the devastating bushfires,” ICA said in a statement.
The additional means-tested grant is being made available to residents with special needs, such as large families, those with special rebuilding needs, reduced income and low-income households and uninsured residents.
Loss adjusters have so far dealt with more than 90% of the 9105 claims received.
The bushfires have caused estimated insured losses of $1.12 billion while about $220 million in emergency payments has been paid to affected policyholders.
Some 84% of claims are for property and contents policies while 16% of claims are for motor vehicles.
Industry representatives have been advised grants from the appeal fund will not affect policyholders who have already had their claims paid.
The decision means people who are insured will be treated in the same way as the uninsured – a situation that has caused heated media debate in Victoria.
However, uninsured victims may be able to made an additional claim through a special means-tested grant.
More than $130 million in donations to the Bushfire Appeal Fund will be distributed to people whose houses were destroyed or partially destroyed in the bushfires.
Owners of destroyed homes will get $50,000, comprising a $35,000 rebuilding grant and $15,000 to replace contents. Tenants of rented properties will receive $15,000.
People who have relocated due to partial destruction of their homes will receive $15,000 for costs associated with repairs and rebuilding.
ICA says the decision by the appeal fund controllers and the Victorian Government treats the insured and the uninsured “fairly and with compassion”.
“Today’s announcement is excellent news for those people affected by the devastating bushfires,” ICA said in a statement.
The additional means-tested grant is being made available to residents with special needs, such as large families, those with special rebuilding needs, reduced income and low-income households and uninsured residents.
Loss adjusters have so far dealt with more than 90% of the 9105 claims received.
The bushfires have caused estimated insured losses of $1.12 billion while about $220 million in emergency payments has been paid to affected policyholders.
Some 84% of claims are for property and contents policies while 16% of claims are for motor vehicles.
Industry representatives have been advised grants from the appeal fund will not affect policyholders who have already had their claims paid.