Financial Rights has so far assisted over 60 Australians across the various affected states who were directly affected by bushfires between November 2019 and April 2020 – people who needed legal support regarding financial hardship or an insurance dispute. We continue to receive calls about bushfire insurance disputes as in our experience these types of legal disputes can continue or even manifest up to 18 months, or even 2 years, after the initial disaster event.
The recent bushfire crisis may have been unprecedented, but the plight of many affected people who find themselves uninsured or underinsured after a natural disaster is not. Financial Rights’ Insurance Law Service has for decades advised consumers on a large number of bushfire-related financial services disputes in past bushfire seasons. These include:
We have also provided support for consumers on the insurance impacts of other natural disasters including:
Every time we have a significant catastrophe we discover that people have been left exposed to significant losses above and beyond their level of insurance, and ongoing claims disputes. The same is the case with the 2019-20 Black Summer of bushfires.
Many of the problems remain the same. The issues relate to disputes over temporary accommodation; whether an excess should be paid; the scope of works and cash settlement offers; or underinsurance borne of an incorrect sum insured for their property. We have spoken to numerous others who don’t have cover for their outbuildings, tanks, or feed for their animals (but who are not primary producers and therefore not eligible for government assistance). Then there are the people who are facing financial hardship and debt collection as a result of the disaster – many of which have no insurance at all, or are unable to obtain insurance moving forward.
There have been a large number of royal commissions and inquiries investigating the critical issues thrown up by natural disasters and their impact on Australian’s ability to insure against these ongoing and increasing risks. Including the
Many of the problems investigated in these inquiries are of the same order as those this current Royal Commission will be taking a close look at. Many of the solutions proposed by these previous inquiries were not acted on, only acted on in part, or governments decided to take minimal measures.
This Royal Commission must examine the issues that are consistent across these previous inquiries and build on their work. The issues are well known, as are many of the solutions:
Firstly, measures need to be taken to improve the ability of Australians to obtain suitable insurance to protect themselves against the risk of bushfires and other natural disasters. This requires:
Secondly, the government needs to intervene to ensure that insurance for Australians in areas subject to bushfire and other natural hazards is affordable. Reform is required to remove stamp duties, taxes and emergency services levies from insurance. The government must confront the problems of mitigation work head on, invest significantly and consider grants and subsidies for such work.
And finally, there must be greater national coordination in relation to disaster prevention, resilience, natural hazard data tracking, gathering and sharing with flow on improvements for insurers and consumers A National Disaster Resilience Agency should be established to co-ordinate, drive and monitor the effectiveness all aspects of disaster preparedness and recovery, including: prevention and mitigation work nationally; the impact of any mitigation work on the price and availability of insurance; the design, application and funding of any subsidies; and the resulting take-up of suitable and affordable insurance cover. This agency should include the functions of both an independent resilience assessor and an insurance price monitor. Alternatively an independent price monitor could be established separately. As disaster events intensify as a result of climate change, the community’s ability to absorb the enormous personal and economic costs of these events will only deteriorate. We need to start investing upfront in prevention, mitigation and disaster preparedness, rather than throwing enormous resources at the aftermath of each subsequent event.
Financial Rights acknowledges Aboriginal and Torres Strait Islander peoples as the traditional owners and celebrate the diversity of Aboriginal peoples and their ongoing cultures and connections to all lands and waters. Financial Rights acknowledges the Gadigal people of the Eora Nation as the traditional owners and custodians of the land on which our main office is located. We pay our respects to Elders past and present and future traditional custodians and Elders of this nation and the continuation of cultural, spiritual and educational practices of Aboriginal and Torres Strait Islander peoples.
Aboriginal and Torres Strait Islander peoples should be aware this website may contain images or names of people who have passed away.
