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| Aerial photo of Wivenhoe Dam taken on January 12, 2011, shows wave of water eing released to lessen pressure on the dam. |
INSURANCE companies got it wrong when handling hundreds of claims by victims of the devastating 2011 floods.
In a boost for homeowners who had given up on having knocked-back claims paid out, the Financial Ombudsman has ruled overwhelmingly in favour of the victims.
At the centre of the payouts is the controversial release of water from Wivenhoe Dam - the flood wave - that went on to flood thousands of homes and properties downstream.
The Financial Ombudsman found the heavy rain that fell from 4am on January 11, 2011, prompted engineers to later adopt the "W4" release strategy of Wivenhoe Dam - under which protecting the dam became a priority over limiting downstream flooding.
This opened the door for a large number of people having their claims paid out where they otherwise would not have.
A total of almost 59,000 claims were lodged after the disaster. Of those initially rejected by insurers, 1182 appealed to the ombudsman.
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Lead Ombudsman for general insurance John Price yesterday revealed that more than two-thirds of those have since been resolved in favour of the flood victim or a result mediated. One hundred and sixty-six disputes are not finalised.
Mr Price said that as a basic rule, those properties that were flooded within 24 hours of 4am on January 11 were likely to be covered.
He said the floods had resulted in the largest number of disputes lodged from a single natural disaster in Australia.
www.CourierMail.com.au
9.1.13
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| Cr Paul Tully |
COMMENT: This is a sensational development for victims of the 2011 Brisbane River flood. It gives fresh hope to property owners and renters whose claims were denied by the rapacious insurance companies in the wake of one of Queensland's largest natural disasters.
The Financial Ombudsman has ruled that more than two-thirds of the claims lodged with the Ombudsman are valid - meaning that insurance companies who said riverine flooding was not covered under their policies, have had their argument flatly rejected by the Financial Ombudsman.
The Financial Ombudsman has ruled that more than two-thirds of the claims lodged with the Ombudsman are valid - meaning that insurance companies who said riverine flooding was not covered under their policies, have had their argument flatly rejected by the Financial Ombudsman.
It is heartening that the Financial Ombudsman has ruled that anyone "flooded within 24 hours of 4am on January 11 were likely to be covered". This paves the way for thousands of flood victims to refer their cases to the Financial Ombudsman for an independent review. But policy holders must act quickly. They must seek a review within 2 years of the rejection of their claim by the insurance company. It seems justice may now be within reach for many flood victims. - PaulGTully@gmail.com
