Lismore Electorate Storm Damage

Mr THOMAS GEORGE (Lismore) [10.35 a.m.]: Surprise, surprise. I want to talk about the hailstorms that hit Lismore last October. The problems that previous speakers referred to in their electorates are echoed throughout my electorate. I know that the relevant Minister is aware of the problem and has taken action. However, I believe the whole insurance industry needs to be reviewed. I want to pay tribute to the State Emergency Service in the Lismore area—indeed, to the emergency workers in all electorates. At the end of last September Rural Fire Service volunteers fought a fire in Bundjalung Park for a week. They came home for a few days and then there was a hailstorm in Lismore that created havoc. A week later there was a tornado at Dunoon, and at Christmas time we had floods.

I place on record the fact that I spoke about this issue in 2001 when we had a disaster at Casino and similar problems arose regarding insurance companies. I will give an example to highlight the problem I want to raise. A lady, Jill Young, pointed out to me that three years ago she purchased a house by obtaining finance and that she had to have insurance to cover the finance. While she was deciding who to insure with, the bank said to her, "Go with our insurance company. Come in here and this gentleman will fix you up with insurance." So she insured the house. Since that time she has been paying the monthly instalments out of her bank account to the bank's insurance company. Three years later a hailstorm hit her house. The insurance assessors turned up at the house and said, "This house has not been maintained. We are not going to fix up this roof. Furthermore, we are cancelling your policy."

Jill Young then came to see me. I rang the insurance company and said, "How could a house deteriorate so badly in three years? You people insured it for three years." The insurance company said it would review the matter. The insurance company then said, "We are going to fix up the roof, but we are still cancelling the policy." I gave the details to the local newspaper, which ran a big story on the issue. The newspaper rang the insurance company about its not reinsuring the house. Within half an hour the insurance company had reviewed the matter again and decided to reinsure the house. Cancelling insurance makes it impossible for a person to get insurance from another company because one company has already knocked them back.

This problem with insurance companies is not restricted to Lismore; as we have heard from the members for Blacktown and for Wallsend it occurs in other electorates as well. The problem is that following these disasters people are told by insurance companies that their roof has not been maintained. Some 90 per cent of residents would not know there is a problem with their roof until water comes through the ceiling into the house. They would not realise that they have to check their roof. What experience would they have that enables them to check their roof annually? It is a problem we are faced with after every storm and every flood. I am very disappointed in insurance companies. Quite a few insurance companies are now making ex gratia payments in relation to floods and storms.

Recently I read a paper issued by legal aid in support of people making an insurance claim. The paper contained a cartoon depicting two raindrops talking to each other. One raindrop says to the other raindrop, "Are you floodwater or stormwater?" The other raindrop says, "I'm not sure, let me consult a lawyer." That sums up the case. The flood at Kyogle caused $200,000 worth of damage to Kyogle Bowling Club. The water came through the club as a result of a deluge of rain into the river. The water did not come from the river—the club is situated on the riverbank. The water did not come from the river and into the club; it came through the club and into the river. Yet the club has been told that it was a flood. The cartoon sums it up. The insurance companies are banking on people fighting them through the courts. That is not right. The insurance companies need to be sympathetic. It is good to see the Minister's representative in the Chamber. I am sure that he will continue to pursue this matter on behalf of my constituents.