ID :
173546
Wed, 04/06/2011 - 14:16
Auther :

Cowardly insurers warned of name, shame by Australian PM Gillard

SYDNEY (AAP) April 6 - Insurers have been warned by Prime Minister Julia Gillard they will be named and shamed over their failure to look people in the eye and hear their complaints about flood coverage.
Ms Gillard says the government could put pressure on the companies to meet customers and also make changes to ensure the situation is not repeated.
Earlier on Wednesday, Ms Gillard also called the insurers cowardly, echoing comments by Assistant Federal Treasurer Bill Shorten, who was scathing of insurers after they failed to front angry disaster victims at a meeting in Ipswich on Tuesday.
Mr Shorten said the no-show was "corporate cowardice". Ms Gillard agreed.
But, she said, Australia had an open, competitive economy and the government could not simply order insurers to pay up.
"I understand people who feel they have been ripped off by insurance companies, but we don't live in an economy where government can come in and rewrite insurance policies people have signed up to, but we can have a name and shame policy."
Ms Gillard said the government was working hard to erase ambiguity over the definition of a flood, which had been blamed for many people's insurance claims being knocked back.
Mr Shorten used the Ipswich meeting to release a single, standard definition for floods in a discussion paper that aimed to end the confusion.
The definition is expected to be considered for inclusion in legislative changes to be introduced later this year.
Ms Gillard said what happened at Ipswich was shameful.
"They (insurers) didn't stump up. They didn't have the courage to go and we are very, very critical of that lack of courage and ability to sit with Queenslanders and work their issues through," she told the ABC.
She said that so far more than 928,000, or one in five, Queenslanders had received federal government help.
Ms Gillard and Queensland Premier Anna Bligh jointly announced a $39 million package to support the recovery.
It includes $20 million for community development and recovery funds for Queensland communities most affected by the floods, as well as $10 million to support mental health services for victims.
Meanwhile, the minister assisting the attorney-general on the flood recovery, Joe Ludwig, toured Grantham - one of the areas worst hit during the January floods - on Wednesday.
Senator Ludwig announced that the Lockyer Valley Regional Council would receive $37.8 million in advanced funding, as one of 44 disaster-affected councils in Queensland.
He said the funding was part of more than $387 million the councils would share, with more than 80 per cent of that to go towards rebuilding Queensland's road network.
In a statement, Senator Ludwig said it would ensure "communities like the Lockyer Valley are connected and businesses can get back to work".

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