Delays and confusion over flood cover feature in submissions from Victorian shire councils to the parliamentary inquiry into the insurance industry’s response to natural disasters.

Councils have told the House of Representatives inquiry that some Victorian residents are still waiting to be paid out seven months after flood hit large areas of the state last summer. They say many people believe insurers are using experts such as hydrologists to avoid paying claims and that many claimants dispute hydrologists’ reports.

Some councils argue in their submissions for a legislated time by which insurers must pay claims, ranging from 30 days to six months.

They also suggest a pooling arrangement for technical experts, saying this would promote speed and consistency.

The Shire of Loddon proposes development of an industry-wide consistent single assessment form.

Councils say residents are mostly unaware of how to dispute a claim or of how to use the Financial Ombudsman Service.

The Shire of Buloke, covering the badly flooded town of Charlton, notes that the level of distress in Charlton can be plainly seen by the number of “anti-insurer” signs that remain on roadways outside flood-affected properties.

“Six months on from the January 2011 flood event, the number of signs is still growing.”

Pyrenees Shire Flood Recovery Co-ordinator Norman Prueter says claims were delayed because residents used the wrong terminology when contacting their insurer, such as saying they had been flooded instead of having stormwater in the house.

Northern Grampians Shire Council says insurance delays made people reluctant to claim for flood recovery grants as they feared having their application denied, or having to pay back money once their claims were settled.