The Housing Industry Association (HIA) and ICA may be forced to appear before a Senate inquiry into home warranty insurance after declining to appear voluntarily.

The inquiry began in March and has heard claims from builder and consumer advocates that last-resort home warranty insurance amounts to little more than “junk insurance”.

The policy is compulsory in all states except Tasmania, but NSW statistics reveal only 38% of claims in that state were either partly or fully paid since 2002.

Tasmania ditched the insurance in April after government ministers denounced the scheme.

The HIA refused to front the inquiry, with MD Ron Silberberg describing the process to The Age as a “kangaroo court”. The HIA is a building trade group and home warranty insurance broker and has defended the scheme in written submissions.

An ICA spokesman told insuranceNEWS.com.au today the insurance industry is represented at the inquiry by “individual insurers”.

CEO Kerrie Kelly says ICA “made a written submission on April 18 to the Senate Economic Committee on behalf of its members”.

The inquiry has the power to summon both groups to give evidence.

Builders Collective of Australia President Phil Dwyer told insuranceNEWS.com.au HIA’s decision not to attend “allows it to avoid the hard questions”.