NSW Premier Bob Carr might have expected the insurance industry to hurriedly endorse his call for home and contents insurance to be made compulsory. But that actually goes against the industry’s philosophy that insurance should be a matter of choice, not compulsion.

Mr Carr made the call for compulsory insurance at the weekend as the bushfires once again revealed an uncomfortable fact about Australian householders: many choose not to insure at all, or are underinsured. Those who gambled and lost – estimates are not yet available – will have to fall back on the state and charities for relief. Not surprisingly, the issue got plenty of airing on Sydney talkback stations yesterday.

But ICA says the industry doesn’t endorse the suggestion. “People should be given the choice to insure, not forced to,” National Public Affairs Manager Sandie Watson told Sunrise Exchange News. “We would encourage people to take out insurance but we wouldn’t see it as right to force people to buy a product.

“Hopefully householders will understand the need for insurance, especially in the wake of the bushfires, because people can’t rely on government appeals. But in the end it’s up to people to decide.”  

She said another issue that’s been picked up by talkback programs is the issue of the fire services levy. She said ICA hopes that increased awareness of the issue will result in governments bringing about a more fair system to fund emergency services so that those who do take out property insurance aren’t disadvantaged.