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Industry on back foot over repairs

As Premier Iemma appoints a recovery expert and beefs up emergency services for western Sydney residents still living under tarpaulins, one thing is obvious: he's no longer consulting the industry before he acts.

In expanding the "National Insurance Hotline" from three to five days a week, Mr Iemma slammed insurers' response. "The Government is putting unscrupulous insurance companies on notice," he said. "No longer will they be able to get away with misrepresenting what their policies cover or denying perfectly reasonable claims.

"If consumers have been denied a claim for storm damage, they can now call the hotline and get free legal advice."

ICA and the Insurance Ombudsman Service (IOS) both told insuranceNEWS.com.au they have had no input into the hotline, which has received 400 complaints during its first six months.

IOS Communications Manager Alison Gillies says the ombudsman is best placed to deal with policyholder complaints. "We would be disappointed if this hotline diverted people from the IOS, which is staffed by insurance and dispute resolution professionals."

The NSW Government has also appointed civil engineer and infrastructure expert Bob Leece as Recovery Co-ordinator to liaise with ICA over "the supply of building materials, builders and tradespeople".

Licensed tradesmen can now register for work on another hotline. Their details will then be given to ICA "so insurers have access to as many qualified builders as possible", Mr Iemma said.

But ICA spokesman Sean Sampson says the council hasn't liaised with the Government on the new recovery operation.

"The council has yet to be consulted by the NSW Government or Mr Leece on how the recovery co-ordinator will operate," he said. "How the council will liaise with Mr Leece has yet to be determined in discussion with him."