We are a proud member of the Financial Services Online network!
Connect with us on your favourite social media platform for the latest financial news, views, tips, tricks, resources and information.
Muswellbrook Shire Council conducted a survey among residents after the quakes, identifying extensive structural damages and a community riddled with anxiety. The survey, reflecting feedback from about 200 participants, showcased a troubling pattern: more than 50% of claims have been turned down by insurers.
Contrary to local concerns, the Insurance Council of Australia (ICA) maintains that insurers are diligently processing claims. The ICA anticipates that most unresolved claims will eventually receive full or partial settlements. An ICA spokesperson clarified in a statement to insuranceNEWS.com.au, “When assessing a claim relating to an earthquake, insurers engage expert engineers to assess potential damage.”
Such diligence, however, has done little to placate local leaders like Mayor Jeff Drayton, who remarked, “The response from insurance companies has been a joke. They have taken so long to assess the claims, only to reject them, leaving people in limbo and wondering what’s the point of insurance.”
This issue isn't isolated, echoing precedents such as the significant Victorian earthquakes in 2021. These earlier events also saw numerous claims lodged, with many resulting in rulings favorable to the insurers from the Australian Financial Complaints Authority.
Typically, homeowners might discover minor, pre-existing damages only after scrutinizing their homes post-quake. Insurance often does not cover such pre-existing conditions, contributing to a rise in rejected claims. As noted by industry reports, while earthquake damage tends to be included in home policies, ambiguous cases caused by routine earth movement or thermal expansion present challenges.
The ICA emphasizes the capacity of expert engineers to “easily distinguish” genuine earthquake damage from other types of defects. Yet, those dissatisfied with insurance outcomes have multiple recourses. Customers may initiate internal disputes, and if unresolved, escalate them to the Australian Financial Complaints Authority.
An underlying concern, though unproven, attributes these seismic events to nearby coal mining operations, raising questions about insurance policies' concordance with evolving geological realities.
With residents increasingly aware and anxious, the ball is in the insurers' court to restore trust. How swiftly and equitably these claims are resolved might well define insurance responses to future, inevitable natural calamities.
Published:Thursday, 21st Nov 2024
Source: Paige Estritori
| Insurers Face Intense Scrutiny Over Quake Claim Rejections 21 Nov 2024: Paige Estritori In recent months, Muswellbrook, a town in New South Wales, has experienced a series of earthquakes that have left residents grappling with both physical destruction and emotional distress. Criticism is mounting against insurers as more than 600 claims have emerged, following these seismic events, yet many remain unresolved or denied. - read more |
| AI Regulations: A Web of Complications 20 Nov 2024: Paige Estritori The Insurance Council of Australia (ICA) has raised concerns about the potential fallout from a fragmented regulatory approach to artificial intelligence and automated decision-making in the industry. There is fear that this patchwork of reforms could result in conflicting requirements, heavier compliance burdens, and increased industry confusion. - read more |
| APRA Survey Reveals Impact of Climate Change on Insurance Industry Practices 19 Nov 2024: Paige Estritori A recent analysis by the Australian Prudential Regulation Authority (APRA) reveals that over 90% of general insurers and reinsurers anticipate climate change will influence their underwriting procedures, posing new challenges to the industry. - read more |
| Fraudulent Claims Lead to Complete Denial of Compensation 18 Nov 2024: Paige Estritori In a remarkable case highlighting the severe consequences of insurance fraud, an individual's attempt to inflate a theft insurance claim has resulted in the total denial of compensation. Despite a significant portion of the claim being genuine, fraudulent actions negated any potential payout. - read more |
| Soaring Insurance Premiums Amid Changing Climate 14 Nov 2024: Paige Estritori As climate change persists, the impact of severe weather on insurance premiums is becoming more evident, pushing affordability out of reach for many Australians. Bernadette Systa, a mother of five, faced an undeniable financial strain as her annual home and contents insurance costs surged from a modest amount to more than twice what she initially paid. This experience echoes a growing dilemma faced by households across the country. - read more |
| Is Private Health Insurance Worth It? Exploring the Benefits In Australia, health insurance plays a significant role in ensuring individuals can access quality medical care without incurring prohibitive costs. - read more
|
| The Importance of Comparing Health Insurance Extras for Maximum Savings Health insurance is more than just a precautionary measure; it's a vital component in managing both your health and financial well-being. In Australia, where healthcare costs can quickly escalate, health insurance extras serve as a buffer, ensuring that services like dental, optical, and physiotherapy remain within reach. These extras can significantly reduce the out-of-pocket expenses you might otherwise encounter for non-hospital treatments. - read more
|
| Keeping Your Family Protected: The Importance of Adequate Health Insurance Coverage The modern Australian family faces a dynamic and ever-evolving set of health needs, with access to quality healthcare remaining a cornerstone of managing our wellbeing. As these needs shift through the different stages of life, the assurance of having a safety net in place can provide unparalleled peace of mind. It's this sense of security that makes adequate health insurance coverage indispensable in today's fast-paced society. - read more
|
| 5 Tips to Save on Health Cover as an Australian Senior Finding the right health insurance coverage is a critical concern for Australian seniors, who often face the dual challenge of managing chronic health conditions and maintaining financial stability in retirement. As the cost of healthcare continues to rise, the importance of securing an affordable health cover that still meets their needs cannot be overstated. - read more
|
| Understanding Health Insurance: A Starter's Guide for Young Australians Embarking on the journey of understanding health insurance is a pivotal stride for young Australians. It's a proactive step that embodies responsibility for one's well-being and financial foresight. Health insurance can often seem like a complex affair reserved for a future self, but grappling with its intricacies early can be both economically savvy and health-conscious. - read more
|
|
Demystifying Individual Coverage: Your Guide to Personal Health Insurance in Australia In the realm of securing one’s health and wellbeing, navigating the Australian health insurance landscape can be as critical as the care received. It stands as a complex tapestry, woven with policies, premiums, and government incentives, affecting individuals and families nationwide. - read more
|
|
|
5 Tips to Save on Health Cover as an Australian Senior Finding the right health insurance coverage is a critical concern for Australian seniors, who often face the dual challenge of managing chronic health conditions and maintaining financial stability in retirement. As the cost of healthcare continues to rise, the importance of securing an affordable health cover that still meets their needs cannot be overstated. - read more
|
|
|
Understanding Health Insurance: A Starter's Guide for Young Australians Embarking on the journey of understanding health insurance is a pivotal stride for young Australians. It's a proactive step that embodies responsibility for one's well-being and financial foresight. Health insurance can often seem like a complex affair reserved for a future self, but grappling with its intricacies early can be both economically savvy and health-conscious. - read more
|
|
|
Is Private Health Insurance Worth It? Exploring the Benefits In Australia, health insurance plays a significant role in ensuring individuals can access quality medical care without incurring prohibitive costs. - read more
|
|
|
Keeping Your Family Protected: The Importance of Adequate Health Insurance Coverage The modern Australian family faces a dynamic and ever-evolving set of health needs, with access to quality healthcare remaining a cornerstone of managing our wellbeing. As these needs shift through the different stages of life, the assurance of having a safety net in place can provide unparalleled peace of mind. It's this sense of security that makes adequate health insurance coverage indispensable in today's fast-paced society. - read more
|