Friday, 14 May, 2021
MACKAY LOCAL NEWS •
Circulating in the Mackay, Isaac and Whitsunday Regional Council areas
Friday, 14 May, 2021
1
www.mackaylocalnews.com.au Issue 14 • $2.50
Insurance costs to fall By JOHN BELL
“EVERY North Queenslander’s home insurance costs will drop by 30 percent when the Federal Government’s $10 billion insurance underwriting scheme starts next year. This welcome prediction has been made by Steel Pacific Insurance Brokers’ General Manager, Glenn Sales. Mr Sales said that from next year, compensation for damage to homes, apartments and small businesses from floods and cyclones will cost the Government about $500 million a year. “The guarantee means that the cost of North Queenslanders’ home insurance premiums will no longer have to pay for this damage with unreasonable higher premiums, which have risen by more than 300 percent,” he said. “However the Federal Government scheme will not directly compensate each North Queenslander for flood and cyclone damage to their homes, apartments and small businesses. “Instead, when insurance companies face damages claims of over $100 million, the Federal Government’s $10 billion insurance guarantee will reimburse
insurance companies. Currently, these companies have sought to cover this higher insurance risk by laying-off, or reinsuring additional cyclone and flood damage risks overseas.” For example, The Mackay Local News has seen local examples of harbourside apartments, where owners have been asked to pay unaffordable and impossibly high costs of $100,000 for every one million dolloars in property value from Lloyds of London. However Mr Sales explained that the Morrison Government’s initiative is not new. Since the terrorist destruction of the TwinTowers in New York on September 11, 2001, the Australian Government has covered the insurance risk from terrorism. For example, it paid out for the Lindt Café siege in 2014, when two hostages and a terrorist were killed. “Detailed guidelines for federal government compensation for North Queenslanders’ flood and cyclone damage have already been drafted in Treasury officials Final Report for the Northern Australian Insurance Premiums Taskforce in 2011,” CONTINUED PAGE TWO
SUPPORT: Dawson MP George Christensen was instrumental in pushing for the Government’s insurance guarantee. Pictured above is another of Mr Christensen’s victories for North Queenslanders, when he took thousands of supportive postcards from North Queenslanders to the Chairman of the ADANI Group Mr Gautam Adani and to his Board members in Ahmedabad, India
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