HIH claims scheme set to wind up
The Federal Government’s HIH Claims Support Scheme should be wound up by the end of the year after accepting almost 11,000 claims since the insurer’s collapse in 2001.
Corporate Affairs Minister Chris Bowen says the scheme has received 16,000 applications for assistance and paid 10,900 eligible claims since July 2001.
“Less than 280 claims remain to be finalised and it is expected that most of these claims will be settled by the end of this year,” he said.
The support scheme was established by the Federal Government and administered by the Insurance Council of Australia and major insurers. It’s believed to have cost the Government more than $650 million.
Earlier this month the Federal Government announced the launch of a new policyholder protection scheme to provide quick access to cash and claims in the event of a future insurer failure.
The Government would also fund that scheme but has proposed a levy on “relevant institutions” should it not fully recoup funds from the liquidation process.
Corporate Affairs Minister Chris Bowen says the scheme has received 16,000 applications for assistance and paid 10,900 eligible claims since July 2001.
“Less than 280 claims remain to be finalised and it is expected that most of these claims will be settled by the end of this year,” he said.
The support scheme was established by the Federal Government and administered by the Insurance Council of Australia and major insurers. It’s believed to have cost the Government more than $650 million.
Earlier this month the Federal Government announced the launch of a new policyholder protection scheme to provide quick access to cash and claims in the event of a future insurer failure.
The Government would also fund that scheme but has proposed a levy on “relevant institutions” should it not fully recoup funds from the liquidation process.