08 September 2012

RACQ insurance verdict gives flood victims hope, Councillor Paul Tully claims

Cr Paul Tully
INSURANCE giant RACQ says a recent decision against it on a claim from a Goodna flood victim will not set a precedent.

RACQ lost the case against Les and Lois Cameron after an 18 month legal battle ran by Legal Aid.

The Financial Ombudsman Service ruled in the couple’s favour that their home was impacted by flash flooding, not riverine flooding.

The distinction between riverine and flash flooding has been a sticking point for thousands of householders in their insurance claims.

But RACQ's Executive manager Insurance Communications Mike Sopinski said the decision did not set a blanket precedent.

"The FOS has stated it will deal with each claim on a case-by-case basis,'' Mr Sopinski said.

"We have claim decisions upheld and we have had claim decisions overturned.

"We have always said we will fully abide by the umpire's decision."

Mr Sopinski urged any householder who believed their claim should be looked at by the FOS to do so.

While the couple were celebrating their win at the Goodna RSL last night, local councillor Paul Tully said the decision gave fresh hope for flood victims.

Cr Tully, himself a flood victim, said the Ombudsman’s determination was binding and there was no provision for it to be re-examined.

“I urge all flood victims in Ipswich and Brisbane whose insurance companies refused to pay out their claims to now appeal those decisions to the Financial Ombudsman Service,’’ Cr Tully said.

Cr Tully will hold a press conference at midday Friday.

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7.9.12