An independent commission of inquiry into the Queensland floods disaster will examine the role of the private insurance industry in providing cover, according to Premier Anna Bligh.

The inquiry will have the powers of a royal commission and seek submissions from the public, summon witnesses, compel the production of documents and issue search warrants.

The commission will make recommendations in its interim report in August, and release a final report in January next year.

It will be headed by Queensland judge Justice Cate Holmes, assisted by two deputies: former Queensland Police Commissioner Jim O’Sullivan and international dams expert Phil Cummins.

Ms Bligh said it would be remiss of the inquiry if it ignored insurance-related issues. She says many victims say they have paid premiums for years believing they were covered for floods.

“The states don’t regulate the insurance industry – that’s a national responsibility,” she told Sky Media. “But I think, given the size of this event, it would be remiss of us not to allow people to bring some of that evidence to the commission.

“And the commission may be able to make some recommendations that the Federal Government could look at and perhaps protect all Australians better in the future.”

Ms Bligh says insurance policies aren’t transparent and alleged people had been “caught out by the fine print”.

Insurance Council of Australia (ICA) CEO Rob Whelan said in a statement this morning that the industry will be “an active and constructive participant” in the inquiry.

He also pointed out that proper flood mapping would allow flood risks to be fully understood and underwritten.

“ICA now has a database with some 4.2 million properties that are prone to flooding on its National Flood Information Database,” he said in a statement. “This work, along with other initiatives on building codes, weather-resistant building materials and various flood mitigation activities, will create a better understanding of how communities can become more resilient.”