Steve Gibbons (Bendigo, Australian Labor Party) Share this | Link to this | Hansard source

My question is addressed to the Assistant Treasurer. Will the minister give an update to the House on progress of insurance claims of those affected by the Victorian bushfires?

Chris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

I thank the honourable member for his question. We all know that the efficient and speedy settling of insurance claims will play a very important part as people seek to rebuild their homes and their lives following the Victorian bushfires. The latest advice is that 6,760 bushfire related insurance claims have been received. Approximately 85 per cent of these relate to property or contents. The approximate value of claims received to date, including residential, commercial, industrial and farming losses, is $810 million. This number is, of course, subject to refinement as further assessment and further work is done to detail the affected premises and assets.

The $810 million estimate comprises approximately 76 per cent domestic claims and 24 per cent farming, commercial and insurance claims. To 23 February, the general insurance industry has delivered approximately $63 million in emergency payment cash settlements to affected policyholders. Several insurers have now completed 100 per cent of the assessment of their commercial claims, while others have completed more than 80 per cent. The remainder of the claims are in areas which cannot currently be accessed. Sixty per cent of home claims have had their sites assessed, up from 50 per cent last Sunday. Of course, progress in completing assessments is dependent on the policyholder being ready to progress the claim—some, understandably, are not—and also on police and coronial activity in the area and, in some cases, continuing bushfires.

When I last addressed the House on this issue, I informed honourable members that the insurance industry had established representation and a process for lodging claims at every relief centre. Following the successful implementation of those arrangements, insurers are now commencing an adjustment of resources into the field to ensure that claims are processed as quickly as possible. The full establishment of the case management system, which has been outlined to the House by the Minister for Families, Housing, Community Services and Indigenous Affairs, has been matched by a dramatic downturn in visits to relief centres, and insurers are continuing to adjust their resourcing to ensure that claims are assessed speedily. Insurers are continuing to maintain a presence at Alexandra, Yea and the Kinglake relief centres, as these locations are close to the damaged properties. I take this opportunity to say to the front-line insurance workers who are dealing with victims being exposed to distressing scenes and stories every day and doing their best to resolve issues as quickly as possible that we appreciate their work.

As I have outlined to the House previously, there will inevitably be some disputation around some insurance claims. As the House will recall, the chief financial ombudsman, who has the power to issue binding decisions to resolve disputed claims, has established a bushfire and flood hotline. That number, for people listening, is 1800337444. The Financial Ombudsman Service has handled about 70 inquiries from bushfire affected policyholders and has been assisting those policyholders in dealing with their insurance companies. Last week I met with the chief executives of each major insurance company in Australia. Each of them indicated a desire to work proactively with the government to resolve issues as they arise, which we appreciate.

I also thank those honourable members who have been in contact with me personally to discuss issues in their electorates. I will not detain the House with an update on each of those issues, other than to say that I appreciate the cooperative spirit with which those honourable members have engaged with the government to resolve issues that they have brought to our attention, and we have worked well together to resolve those issues. It is still relatively early days in terms of resolving all the insurance claims and issues arising out of the bushfires, but we will continue to work with honourable members affected, with the insurance companies and, where necessary, with the chief financial ombudsman to resolve these issues as they arise. I will keep the House updated with progress.