Hard questions continue to be asked of privatised home warranty insurance, with revelations in the Sydney Morning Herald at the weekend that Howard Government minister Helen Coonan received the maximum $200,000 payout.

Senator Coonan, a former Assistant Treasurer responsible for financial services, collected the maximum payout for faulty work done on her NSW house in 2001.

The payout came to light last week as a Senate committee continued to review privatised home warranty insurance. Its final report is due in October.

Figures from the Office of Fair Trading show only 38% of claims were partially or fully accepted in NSW since 2002, and Builders Collective of Australia President Phil Dwyer told the inquiry the maximum payment is very rare.

Senator Coonan’s payment came as the Government shifted the policy from a retail product to a wholesale scheme, removing consumer protection and financial reporting requirements.

But Senator Coonan told the newspaper at the weekend those amendments were handled by then Financial Services Minister Joe Hockey.

The scheme’s insurer, Vero, says the money was paid on the merits of the claim.