Standard ‘flood’ definition for insurance providers
In the wake of the Queensland floods, the Federal Government and Insurance Council of Australia (ICA) have agreed to develop a mandatory definition of ‘flood’ to be incorporated into current legislation.
Also agreed to was a one-page summary statement written in plain English that will help to ensure consumers know what their insurance policy covers.
The ICA is currently consulting with its membership on the definition for ‘flood’, after which the Assistant Treasurer, Bill Shorten, will consult with consumer groups to come to a consensus definition.
Shorten said the Government would then quickly move to adopt this.
“Both the standard definition and the one-page summary statement are complicated issues and there is more work to be done, but it is encouraging to see the insurance industry express its willingness to embrace change,” Shorten said.
The ICA also announced it will make a donation of $250,000 to Queensland legal assistance to aid with providing advice to flood and cyclone victims.
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