Cathy O'Toole (Herbert, Australian Labor Party) Share this | Link to this | Hansard source

I stand here today on behalf of all Townsville residents who are experiencing bullying and intimidation tactics by the banks and insurance companies, and to say to the LNP government: you had better watch out, because right now what is happening in my town to people in distress is on your watch. The banking royal commission handed down its recommendations, and the LNP government are refusing to act on any of the recommendations until after the election. Townsville flood victims who are being bullied by the banks and insurance companies cannot wait until after an election for the implementation of these recommendations.

I will now recount to you an email that was sent to me today by a flood victim in Townsville who is being bullied and harassed by the Commonwealth Bank's insurance arm and who needs the recommendations of the banking royal commission implemented now. Matt says:

We have lost everything we own at our rental house in Townsville.

We are a family of five.

Three children aged 1, 4 and 6.

We have our contents insured with CommInsure.

Our experience has consisted of the following flagrant and unprofessional and uncompassionate practices in chronological order:

1. Over twenty hours of on-hold time to lodge our claim and understand the CommInsure claim assessment process and estimated timeframes.

2. Each call received by different staff who provided inconsistent and/or conflicting advice

3. Rejection of request for direct contact for claim manager to avoid one or two hour hold times

4. Neglect to offer policy entitlement to financial compensation for alternative/emergency accommodation

5. Encouragement to accept emergency cash payment for temporary/emergency accommodation at every query—following hours of on-hold and multiple interactions with staff, we learn that the emergency cash payment will get deducted from final settlement for contents (that is; we can't pay to replace items written off by CommInsure assessor)

6. Informed that our entitlement to temporary accommodation was separate to contents claim, but we needed to accept cash payout anyway—told that direct payment to accommodation was unlikely to be accepted by accommodation. Not true.

7. We were forced to find furnished accommodation that was within financial bracket communicated by CommInsure. They paid for two weeks temporary accommodation.

8. Request to extend accommodation denied—terms of policy ignored

9. Request to extend granted after multiple queries regarding policy terms.

10. Supervisor of claim phones to inform that our request to extend our entitlement to temporary accommodation was beyond reasonable because:

we required a furnished apartment

we were looking to find equivalent rental properties

11. Supervisor encouraged: we lower our standards to consider unfurnished accommodation—his assessor wrote off all of our contents

12. Supervisor encouraged: we consider accommodation further from schools and my work—second car and push bike written off meaning I will have to live within walking distance—

that is, of work. It goes on:

13. Supervisor encouraged: we consider lower standard of living accommodation so that we stop our need for temporary/emergency accommodation

We are massively stressed and traumatised from losing everything we own.

Our experiences with CommInsure have made or stress levels so much worse.

We've had to seek medical advice/intervention as a result of CommInsure induced stress.

The stress and time needed to deal with CommInsure stalling and bullying tactics has also delayed my return to work.

Can you please help?

Well, Matt, I can, by standing here today in this place and fighting for you. Matt and his family have survived the worst floods in Townsville's history. But what they can't put up with are the bullying tactics of CommInsure. Matt and his family should not have to put up with these bullying tactics, because the LNP government should do what they are paid to do by hardworking taxpayers like Matt. They should do their job of governing, and enact the banking royal commission's recommendations instead of protecting the interests of the banks. I demand that the LNP government put Townsville flood victims before their banking mates. People like Matt, in our community, should not be under this undue stress and pressure at a time when they have lost everything. I cannot believe that an insurance company would suggest to someone that they lower their standard of living. That is outrageous, with three young children and with one car gone and the bike gone. They can't get to work. How do they get their child to school? It is simply unacceptable. This government must act upon the banking royal commission recommendations immediately.