Income Insurance :: News
SHARE

Share this news item!

Clarification Call: Insurers Challenged on Confusing Terms Amid Crisis

Clarification Call: Insurers Challenged on Confusing Terms Amid Crisis

Clarification Call: Insurers Challenged on Confusing Terms Amid Crisis?w=400
For two consecutive days, the flood-affected residents of Queensland have been voicing their concerns during the ongoing deliberations of a federal inquiry, tasked with examining insurers' responses to the catastrophes of 2022.
The inquiry, in its concluding phase, conducted its second public hearing in the Logan area on April 10th, 2024.

Daniel Mulino, the Chair of the House of Representatives Standing Committee on Economics, highlighted the importance of these sessions. According to him, insights from the affected populations convey invaluable perspectives that enrich the committee's understanding. More interactions with community representatives are expected to occur in the Far North Queensland and Tasmania regions, with proceedings for Victorians set in the towns of Maribyrnong, Rochester, and Heathcote on esteemed dates in April. Findings from these series of hearings are to be formally presented in a report by September 30.

During the latest session, the committee pinpointed the problematic nature of insurance lingo, such as the term 'SOW' (scope of works), which can exacerbate the frustration of those struggling through intricate claims procedures. Melinda McInturff, the Community Plus+ Community Resilience Coordinator, urged insurance providers to communicate more effectively and avoid terminology that may elude the understanding of the general public.

The inquiry revisited concerns including subpar cash settlement proposals and the deployment of professional evaluations to quantify losses—topics previously brought up with insurers, watchdogs, and consumer groups. McInturff revealed instances of insurers pressuring claimants into swift decision-making on settlements, citing an example of a family who felt compelled to settle for a meager $50,000 on the threat of having to furnish receipts for all lost items in the midst of post-disaster chaos.

Additional grievances noted were the procedures adopted by some insurers, which seemed to undervalue the repair costs incurred by flood victims. McInturff explained that frequent on-site evaluations by varying experts hinder the claims process, causing further perplexity and delay.

Emma Webster, the Flood Recovery Solicitor from Tenants Queensland, highlighted the need for the insurance sector to consider both renters and landlords. Insurance protection should cater to renters' needs, ensuring they have shelter post-calamity, while aiding landlords in repair efforts. Webster underscored that existing insurance frameworks place tenants at a stark disadvantage, excluding them from benefits like alternative accommodation provisions in the aftermath of such events.

Today's dialogue also uncovered the insufficient support insurance firms offer to their most vulnerable clients. McInturff referenced a domestic violence sufferer who reached out to her insurer on March 27, yet remains without a response. In the context of disasters elevating domestic stress levels, the urgency for such situations to be prioritized becomes even more evident.

The proceedings of this federal inquiry lay bare the critical interplay between natural disasters and the insurance industry. As voiced by countless individuals throughout these hearings, the demand for transparent and empathetic communication, equitable treatment of claimants, and consideration of the precarious positions some tenants find themselves in, is unambiguous and is expected to shape future policy discussions and outcomes.

Published:Thursday, 11th Apr 2024
Source: Paige Estritori

Share this news item:

Insurance News

ICA Advocates for Strata Law Reform in the ACT to Enhance Building Management ICA Advocates for Strata Law Reform in the ACT to Enhance Building Management
08 Jul 2025: Paige Estritori

The Insurance Council of Australia (ICA) is urging the Australian Capital Territory (ACT) to adopt strata transparency regulations, aiming to enhance oversight of building repairs and maintenance by owners’ committees. This call was made during a parliamentary inquiry, where the ICA pushed for measures akin to recent legislative changes in New South Wales. - read more
Tasmanian Government Insurance Proposal Faces Industry Backlash Tasmanian Government Insurance Proposal Faces Industry Backlash
07 Jul 2025: Paige Estritori

The Tasmanian government's recent proposal to establish a state-run insurance entity has drawn significant criticism from key players in the insurance industry. The plan, spearheaded by Premier Jeremy Rockliff, aims to expand the Motor Accidents Insurance Board into a broader service named TasInsure, offering products including home and contents insurance, small business coverage, and more. The RACT, a major player in Tasmania's insurance sector, expressed considerable concern, labelling the initiative as a simplistic answer to complex problems. - read more
Asbestos Scare Leaves Hospitality Business Uninsured Asbestos Scare Leaves Hospitality Business Uninsured
04 Jul 2025: Paige Estritori

The discovery of asbestos-contaminated mulch in a Sydney park led to the cancellation of a festival, resulting in significant financial losses for a hospitality business. Despite these setbacks, the company's claim for coverage under its business interruption (BI) policy was rejected. - read more
Landmark NSW Decision: Dog Walking Costs Covered in Car Crash Injury Claims Landmark NSW Decision: Dog Walking Costs Covered in Car Crash Injury Claims
03 Jul 2025: Paige Estritori

In a groundbreaking decision by the NSW Personal Injury Commission, an insurer has been directed to cover the costs of dog walking services for a car crash victim. The commission ruled that these services classify as domestic assistance under the state’s Motor Accident Injuries Act. This case could pave the way for broader interpretations of 'attendant care services' for claimants. - read more
Extreme Weather Drives $1.8 Billion in First Half Losses for Australian Insurers Extreme Weather Drives $1.8 Billion in First Half Losses for Australian Insurers
03 Jul 2025: Paige Estritori

Extreme weather events in Australia have resulted in significant financial impacts for insurers, tallying $1.83 billion in losses during the first half of the year. This comes as insurance companies gear up for further claims linked to ongoing severe weather in New South Wales. - read more



Life Insurance Articles

Understanding Income Protection Insurance: A Comprehensive Guide for Australians Understanding Income Protection Insurance: A Comprehensive Guide for Australians
Income protection insurance is an essential component of financial security for Australians, designed to provide a safety net by replacing a portion of your income if you're unable to work due to illness or injury. Despite its critical role in safeguarding livelihoods, it's often overlooked in personal financial planning. - read more
Common Pitfalls in Income Insurance Claims and How to Avoid Them Common Pitfalls in Income Insurance Claims and How to Avoid Them
Income insurance is a critical component of financial planning, offering a safety net when life's uncertainties impact your income stream. It ensures that you can continue meeting your financial obligations even if you're unable to work due to illness or injury. This peace of mind is invaluable, especially in an unpredictable job market. - read more
Illness and Your Finances: Strategies for Continuous Income Flow Illness and Your Finances: Strategies for Continuous Income Flow
When illness strikes, the impact on your finances can be as significant as on your health. Maintaining continuous income flow during such times is crucial for financial stability. - read more
Preparing for the Unexpected: Why Income Protection is Essential for Financial Security Preparing for the Unexpected: Why Income Protection is Essential for Financial Security
Life's unpredictability can often bring unforeseen challenges, particularly when it comes to our finances. One day you might be climbing the career ladder, the next you could find yourself unable to work due to illness or injury. This is where income protection insurance steps in, serving as a financial safety net that ensures you can continue to meet your living expenses, even when the unexpected happens. - read more
Understanding the Process: A Beginner's Guide to Income Insurance Claims Understanding the Process: A Beginner's Guide to Income Insurance Claims
Income insurance, an often-overlooked component of financial security, is gaining traction among Australia's burgeoning self-employed population. In an economy where traditional employment is no longer the sole path to success, this form of insurance has become a cornerstone for proactive financial planning. Touted as a safety net, it ensures that personal livelihoods and business operations remain secure in the face of adversity. - read more
Income Insurance: Common Misunderstandings that Could Cost You Income Insurance: Common Misunderstandings that Could Cost You
When life throws unexpected challenges your way, income insurance can be a financial lifesaver. Essentially, it's a policy designed to replace a portion of your income if you're unable to work due to illness or injury. Imagine not having to worry about bills piling up while you focus on recovery. That's the peace of mind income insurance aims to provide. - read more
How Pre-Existing Conditions Affect Your Income Protection Insurance Options How Pre-Existing Conditions Affect Your Income Protection Insurance Options
Income protection insurance is a type of insurance policy designed to provide you with a continuous flow of income in case you are unable to work due to illness or injury. It's a safety net that helps ensure you can maintain your standard of living, even when unforeseen health issues arise. - read more
Income Protection Insurance: A Must-Have for Australian Adults Income Protection Insurance: A Must-Have for Australian Adults
Insurance is a crucial component of financial planning. While many Australians understand the importance of life insurance, there's another vital type of coverage that often gets overlooked: income protection insurance. - read more
Why Every Australian Entrepreneur Needs Income Protection Insurance Why Every Australian Entrepreneur Needs Income Protection Insurance
Entrepreneurship in Australia - a landscape overview: The allure of entrepreneurship in Australia is undeniable, with the promise of innovation, personal autonomy, and potentially limitless earnings. However, the path of an entrepreneur is often unpaved and unpredictable. Without the safety nets traditionally provided by corporate employment, Australian entrepreneurs must proactively safeguard their personal finances against the capricious winds of business fortune. - read more
Understanding the Process: A Beginner's Guide to Income Insurance Claims Understanding the Process: A Beginner's Guide to Income Insurance Claims
Income insurance, an often-overlooked component of financial security, is gaining traction among Australia's burgeoning self-employed population. In an economy where traditional employment is no longer the sole path to success, this form of insurance has become a cornerstone for proactive financial planning. Touted as a safety net, it ensures that personal livelihoods and business operations remain secure in the face of adversity. - read more

Start Here !
disability protection
Apply now for your free Insurance assessment and price comparisons!

Start Here

Monthly Income Benefit:
Postcode: