House of Representatives Committees

| House of Representatives Standing Committee on Social Policy and Legal Affairs

Footnotes

Chapter 1 Introduction

[1] L Murdoch, ‘Qld Floods “the Worst in History”’, 16 January 2011, Brisbane Times <http://www.brisbanetimes.com.au/environment/weather/qld-floods-disaster-worst-in-history-20110116-19sja.html#ixzz1gfV7273T> viewed 16 December 2011.

[2] Mr Colin Fagen, Chief Executive Officer, Australian Operations, QBE Insurance Australia, Committee Hansard, Sydney, 14 October 2011, p. 15.

[3] Insurance Council of Australia, ‘Cost of 2011’s Catastrophes passes $4.3 Billion as Builders take a Break‘, Media Release, 21 December 2011.

[4] Mr James Higgins, Executive Manager, Queensland Event Recovery, Suncorp Group, Committee Hansard, Sydney, 14 October 2011, p. 29.

[5] Mr Dallas Booth, Chief Executive Officer, National Insurance Brokers Association of Australia, Committee Hansard, Sydney, 14 October 2011, pp. 2–3.

[6] Australian Financial Counselling and Credit Reform Association et al, A Fair Go in Insurance, January 2011, pp. 4–5 <http://www.bsl.org.au/pdfs/Joint_subm_Fair_go_in_insurance_2011.
pdf> viewed 9 January 2012.

[7] Under the Insurance Contracts Act 1984 (Cth), insurance contracts are exempt from the unfair contract provisions of the Australian Consumer Law (in the Competition and Consumer Act 2010) or the Australian Securities and Investments Commission Act 2001 (Cth).

[8] F Guthrie, ‘Insurance Companies make the Rules’, 1 February 2011, The Australian, <http://www.theaustralian.com.au/news/opinion/insurance-companies-make-the-rules/story-e6frg6zo-1225997655110> viewed 16 December 2011.

[9] M Cranston, ‘Pace of Flood Rebuilding Questioned’, Australian Financial Review, 10 January 2012, p. 7.

[10] Australian Securities and Investments Commission (ASIC), ‘Getting Home Insurance Right: A report on home building insurance’, Report 54, September 2005, p. 5.

[11] ASIC, ‘Making Home Insurance Better’, Report 89, January 2007, p. 6.

[12] Queensland Flood Commission of Inquiry, ‘Terms of Reference’, <http://www.flood
commission.qld.gov.au/terms-of-reference> viewed 29 November 2011.

[13] Natural Disaster Insurance Review, ‘Terms of Reference’, <http://www.ndir.gov.au/
content/Content.aspx?doc=tor.htm>, viewed 29 November 2011.

[14] The Treasury, ‘Natural Disaster Insurance Review: Inquiry into flood insurance and related matters’ September 2011, pp. 9–16.

[15] The Hon. Bill Shorten MP, Assistant Treasurer and Minister for Financial Services and Superannuation, and the Hon. Robert McClelland MP, Attorney General, ‘Fixing Flood Insurance’, Media Release 52, 14 November 2011.

[16] House of Representatives Standing Committee on Economics, ‘Advisory Report on the Insurance Contracts Amendment Bill 2011’ February 2012.

Chapter 2 The general insurance industry in Australia

[1] Australian Prudential Regulation Authority, ‘Statistics: Quarterly General Insurance Performance, September 2011’, pp. 9–10 <http://www.apra.gov.au/GI/Pages/quarterly-general-insurance-statistics.aspx> viewed 20 December 2011.

[2] Mr Robert Whelan, Chief Executive Officer, Insurance Council of Australia (ICA), Committee Hansard, Sydney, 14 October 2011, p. 38.

[3] IBISWorld, ’IBISWorld Industry Report K7422: General Insurance in Australia’, May 2011, p. 3, <http://www.ibisworld.com.au/industry/default.aspx?indid=526> viewed 9 January 2012.

[4] IBISWorld, ’IBISWorld Industry Report K7422: General Insurance in Australia’, May 2011, p. 4.

[5] Financial Ombudsman Service (FOS), ‘General Insurance Code of Practice—Overview of Year 2009/2010’, p. 41 <http://www.fos.org.au/centric/home_page/publications/
general_insurance_code_of_practpra_yearly_overview.jsp> viewed 10 January 2012.

[6] Insurance Council of Australia (ICA), Submission 16, p. 2.

[7] ICA, Submission 16, p. 2.

[8] IBISWorld, ’IBISWorld Industry Report K7422: General Insurance in Australia’, May 2011, p. 6.

[9] Legal Aid NSW, Submission 57, Attachment 2, p. 20.

[10] Mr Dallas Booth, Chief Executive Officer, National Insurance Brokers Association of Australia, Committee Hansard, Sydney, 14 October 2011, p. 5.

[11] Bruce Gillan, Submission 64, p. 3.

[12] Legal Aid Queensland, Submission 44, pp. 6–7.

[13] Senator Gareth Evans, former Attorney-General, ‘Second reading speech: Insurance Contracts Bill 1983’, Senate Hansard, 1 December 1983, p. 3135, viewed 21 December 2011.

[14] Mr Greg Kirk, Senior Executive Leader, Deposit Takers Credit and Insurers, Australian Securities and Investments Commission (ASIC), Committee Hansard, Canberra, 22 September 2011, p. 1.

[15] Mr Kirk, Committee Hansard, Canberra, 22 September 2011, p. 1.

[16] The Insurance Contracts Amendment Bill 2010 was passed by the House of Representatives on 23 June 2010 and introduced in the Senate on 24 June 2010.

[17] For more information about the regulation governing brokers, please see ASIC, Insurance Broker Remuneration Arrangements, Report No. 42, June 2005.

[18] ASIC, Insurance Broker Remuneration Arrangements, Report No. 42, June 2005.

[19] Mr Ian Laughlin, Member, Australian Prudential Regulation Authority, Committee Hansard, 24 November 2011, p. 1.

[20] Australian Competition and Consumer Commission, ‘About Us’ <http://www.accc.gov.au/
content/index.phtml/itemId/142> viewed 29 November 2011.

[21] ICA, ‘Insurance Council of Australia Members’ <http://www.insurancecouncil.com.au/
AboutUs/OurMembers/tabid/1690/Default.aspx> viewed 11 January 2011.

[22] ICA, ‘About Us’ <http://www.insurancecouncil.com.au/AboutUs/OurRole/tabid/1288/
Default.aspx> viewed 1 December 2011.

[23] FOS, ‘Terms of Reference’, p. 23 <http://www.fos.org.au/ public/download.jsp?id=17224> viewed 10 January 2012.

[24] See for example, FOS, ‘Determination, Case number: 211177’ <https://forms.fos.org.au/
DapWeb/CaseFiles/FOSSIC/211177.pdf> viewed 19 December 2011. General principles of contract law are mostly based in case law, i.e. law decided by the courts.

[25] See for example, FOS, ‘Determination, Case number: 213228’ <https://forms.fos.org.au/
DapWeb/CaseFiles/FOSSIC/213228.pdf> viewed 19 December 2011.

[26] FOS, ‘Terms of Reference’, p. 2.

[27] Mr John Price, Ombudsman General Insurance, Financial Ombudsman Service, Committee Hansard, 15 September 2011, p. 1.

[28] FOS, ‘General Insurance Code of Practice – Overview of Year 2009/2010’, Appendix A.

[29] FOS, ‘Terms of Reference’, p. 22.

[30] FOS, ‘Terms of Reference’, p. 22.

Chapter 3 General Insurance Code of Practice

[1] Insurance Council of Australia (ICA), ‘General Insurance Code of Practice’, p. 2 <http://www.codeofpractice.com.au/> viewed 9 January 2012.

[2] Mr John Ripepi, Chief Executive Officer, Wesfarmers Federation Insurance, Committee Hansard, Sydney, 14 October 2011, p. 13.

[3] ICA, ‘General Insurance Code of Practice’, p. 9.

[4] ICA, ‘General Insurance Code of Practice’, p. 9.

[5] ICA, ‘General Insurance Code of Practice’, pp. 11-12.

[6] ICA, ‘General Insurance Code of Practice’, p. 7.

[7] Proposed changes to the General Insurance Code of Practice, 28 November 2011.

[8] ICA, ‘General Insurance Code of Practice’, p. 2.

[9] Financial Ombudsman Service (FOS), Submission 47, p. 12.

[10] Mr John Price, Ombudsman General Insurance, Financial Ombudsman Service, Committee Hansard, Canberra, 15 September 2011, p. 2.

[11] ICA, ‘General Insurance Code of Practice’, pp. 12–14.

[12] FOS, ‘General Insurance Code of Practice – Overview of the Year 2009/2010’, p. 11 <www.fos.org.au/public/download.jsp?id=14819> viewed 9 January 2012.

[13] FOS, ‘General Insurance Code of Practice – Overview of the Year 2009/2010’, p. 11.

[14] The complaints were with respect to clauses 3.4.1, 3.6.1 and 6.1.1 of the Code.

[15] FOS, ‘General Insurance Code of Practice – Overview of the Year 2009/2010’, p. 16.

[16] ICA, ‘General Insurance Code of Practice’, p. 12.

[17] FOS, ‘General Insurance Code of Practice – Overview of the Year 2009/2010’, p. 16.

[18] The other complaint related to technology problems.

[19] FOS, ‘General Insurance Code of Practice – Overview of the Year 2009/2010’, pp. 17–25.

[20] FOS, ‘Terms of Reference’, p. 22 <http://www.fos.org.au/public/download.jsp?id=17224> viewed 10 January 2012.

[21] FOS, ‘Terms of Reference’, p. 22.

[22] ICA, ‘General Insurance Code of Practice’, p. 2.

[23] ICA, ‘General Insurance Code of Practice’, p. 14.

[24] Mr Price, FOS, Committee Hansard, Canberra, 15 September 2011, p. 9; FOS, ‘Our Ombudsmen’, <http://www.fos.org.au/centric/home_page/about_us/our_ombudsmen.jsp> viewed 9 January 2012.

[25] ICA, ‘General Insurance Code of Practice’, p. 12.

[26] For more information on self regulation, see Australian Securities and Investment Commission, ‘Institutional self-regulation: what should be the role of the regulator?’<http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/NIGConf_081101.pdf/$file/NIGConf_081101.pdf> viewed 20 December 2011.

[27] Insurance Law Service (ILS), Submission 54, p. 13.

[28] Mr John Ripepi, Chief Executive Officer, Wesfarmers Federation Insurance, Committee Hansard, Sydney, 14 October 2011, p. 8.

[29] Mr Mark Smith, General Manager, Bank Distribution and Insurance, BT Financial Group, Committee Hansard, Sydney, 14 October 2011, p. 21.

[30] Mr Michael Wilkins, Managing Director and Chief Executive Officer, Insurance Australia Group, Committee Hansard, Canberra, 13 October 2011, p. 9.

[31] Mr Ripepi, Wesfarmers Federation Insurance, Committee Hansard, Sydney, Friday 14 October, p. 13.

[32] Committee Hansard, Graceville, 27 September 2011, p. 17.

[33] ILS, Submission 54, p. 13.

[34] Committee Hansard, Graceville, 27 September 2011, p. 21.

[35] Committee Hansard, Graceville, 27 September 2011, p. 21.

[36] Committee Hansard, Bridgewater, 26 October 2011, p. 14.

[37] Committee Hansard, Rochester, 27 October 2011, p. 2.

[38] Cr Graeme Lehman, Mayor, Somerset Regional Council, Committee Hansard, Ipswich, 27 September 2011, p. 16; Mr John Braga, Committee Hansard, Graceville, 27 September 2011, p. 36.

[39] Mr Greg Kirk, Senior Executive Leader, Deposit Takers Credit and Insurers, Australian Securities and Investments Commission (ASIC), Committee Hansard, Canberra, 22 September 2011, p. 7.

[40] Mr Kirk, ASIC, Committee Hansard, Canberra, 22 September 2011, p. 8.

[41] Victorian Legal Assistance Forum, Submission 50, p. 5.

[42] Mr Justin Stevenson, Director Civil Law, Legal Aid Western Australia, Committee Hansard, Kelmscott, 2 August 2011, p. 9.

Chapter 4 Lack of consumer awareness

[1] The Treasury, ‘Natural Disaster Insurance Review: Inquiry into flood insurance and related matters’ September 2011, p. 21.

[2] Hams v CGU Insurance Ltd, [2002] NSWSC 273.

[3] Financial Ombudsman Service (FOS), ‘Financial Ombudsman Circular,’ Issue 7, Update 1, Flood Edition, November 2011, p. 3: ‘Whilst in most circumstances the provision of a [Product Disclosure Statement] will satisfy the need to clearly inform, that will not always be the case. When considering whether the applicant has been clearly informed that their policy deviates from standard cover, it is necessary to consider the whole circumstances that have led to policy inception. Any conversations held prior to the inception of the policy, provision of insurance certificate and policy documentation were all considered. The [Financial Service Provider]’s conduct at inception was misleading as the applicant was led to believe that the policy provided full flood cover.’

[4] Australian Securities and Investments Commission (ASIC), ‘Consumer Understanding of Flood Insurance’ Report 7, June 2000, p. 9.

[5] ASIC, ‘Consumer Understanding of Flood Insurance’ Report 7, June 2000, p. 8; The Treasury, ‘Natural Disaster Insurance Review’ September 2011, p. 101.

[6] The Treasury, ‘Natural Disaster Insurance Review’ September 2011, p. 103.

[7] Mr David Coorey, Senior Solicitor, Legal Aid New South Wales, Graceville, 27 September 2011, p. 25.

[8] ASIC, ‘Consumer Understanding of Flood Insurance’ Report 7, June 2000.

[9] FOS, ‘The General Insurance Code of Practice: Overview of the Year 2009/2010, p. 53 <http://www.fos.org.au/public/download.jsp?id=14819> viewed 9 January 2012.

[10] Queensland Government, Submission 13, p. 1.

[11] Victorian Legal Assistance Forum (VLAF), Submission 50, p. 4.

[12] Ms Karen Cox, Coordinator, Insurance Law Service, Committee Hansard, Graceville, 27 September 2011, p. 24.

[13] Mr Robert Whelan, Chief Executive Officer, Insurance Council of Australia, Committee Hansard, Sydney, 14 October 2011, p. 40.

[14] Mr Mark Smith, General Manager, Bank Distribution and Insurance, BT Financial Group, Committee Hansard, Sydney, 14 October 2011, p. 20.

[15] Committee Hansard, Bridgewater, 26 October 2011, p. 10.

[16] ASIC, ‘Consumer Understanding of Flood Insurance’ Report 7, June 2000, p. 2.

[17] Mr Alexander Harrison, Chief Operating Officer, Direct Insurance, Insurance Australia Group, Committee Hansard, Canberra, 13 October 2011, p. 2.

[18] FOS, ‘Financial Ombudsman Circular,’ Issue 7, Update 1, Flood Edition, November 2011, p. 5, citing FOS Case No: 239225, available at <https://forms.fos.org.au/DapWeb/CaseFiles/
FOSSIC/239225.pdf>.

[19] Insurance Council of Australia (ICA), ‘10 Point Plan to tackle Disasters’, Media Release, 27 January 2011.

[20] ASIC, ‘Getting Home Insurance Right: A report on home building insurance’, Report 54, September 2005.

[21] ASIC, ‘Making Home Insurance Better’, Report 89, January 2007.

[22] ASIC, ‘Making Home Insurance Better’, Report 89, January 2007, p. 4.

[23] VLAF, Submission 50, p. 4.

[24] Insurance Australia Group (IAG), Submission 38, p. 7.

[25] Ms Bridget Lawton, Coordinator, Consumer Law Service, Caxton Legal Centre, Committee Hansard, Bridgewater, 26 October 2011, p. 13.

[26] The Treasury, ‘Natural Disaster Insurance Review’ September 2011, p. 106.

[27] The Treasury, ‘Natural Disaster Insurance Review’ September 2011, p. 102.

[28] Taskforce on Industry Self-regulation, Industry Self-regulation in Consumer Markets, August 2000, p. 68.

[29] Legal Aid NSW, Submission 57, p. 11.

[30] Caxton Legal Centre, Submission 53, p. 22.

[31] Legal Aid Queensland, Submission 44, p. 2.

[32] Choice, the Consumer Action Law Centre, Financial Counselling Australia and the Footscray Community Legal Centre, Submission 35, pp. 2–3.

[33] Insurance Law Service, Submission 54.1, p. 41.

[34] Committee survey.

[35] Committee Hansard, Charlton, 26 October 2011, p. 3.

[36] Mr Keith Oberin, Municipal Emergency Response Manager, Campaspe Shire Council, Rochester, Committee Hansard, 27 October 2011, p. 2.

[37] Buloke Shire Council, Submission 45, p. 15.

[38] IAG, Submission 38, p. 20.

[39] ASIC, ‘Review of general insurance claims handling and internal dispute resolution procedures’ Report 245, August 2011, p. 23.

[40] ASIC, ‘Review of general insurance claims handling and internal dispute resolution procedures’ Report 245, August 2011, p. 24.

[41] Choice, ‘The 2011 Shonky Awards’ <http://www.choice.com.au/reviews-andtests/
awards/shonky-awards/shonkys/the-2011-shonky-awards.aspx> viewed 26 October 2011.

[42] ICA, ‘General Insurance Code of Practice’, p. 9 <http://www.codeofpractice.com.au/> viewed 8 December 2011.

[43] Mr John Price, Ombudsman General Insurance, FOS, Committee Hansard, Canberra, 15 September 2011, p. 9.

[44] FOS, Submission 47, p. 10.

Chapter 5 Lack of consumer protections

[1] Choice, the Consumer Action Law Centre, Financial Counselling Australia and the Footscray Community Legal Centre (Choice et. al.), Submission 35, p. 4.

[2] Australian Securities and Investments Commission (ASIC), Submission 14, p. 2.

[3] ASIC, ‘Review of general insurance claims handling and internal dispute resolution procedures’ Report 245, August 2011, pp. 15–16.

[4] Mr Greg Kirk, Senior Executive Leader, Deposit Takers Credit and Insurers, ASIC, Committee Hansard, Canberra, 22 September 2011, p. 5.

[5] Insurance Council of Australia (ICA), ‘General Insurance Code of Practice’, p. 6 <http://www.codeofpractice.com.au/> viewed 8 December 2011.

[6] Legal Aid NSW, Submission 57, p. 18.

[7] Insurance Law Service (ILS), Submission 54, p. 8.

[8] Legal Aid Queensland (LAQ), Submission 44, p. 3.

[9] Legal Aid NSW, Submission 57, pp. 23–24.

[10] ICA, ‘General Insurance Code of Practice’, p. 6.

[11] ICA ‘General Insurance Code of Practice’, p. 6.

[12] ICA, ‘General Insurance Code of Practice’, p. 6.

[13] ILS, Submission 54.3, p. 39.

[14] ICA, ‘General Insurance Code of Practice’, p. 9.

[15] ILS, Submission 54, p. 6.

[16] Caxton Legal Centre, Submission 53, p. 26.

[17] Committee survey.

[18] R Barrett, ‘Payout Boost for Queensland Flood Victims’, 5 August 2011, The Australian <http://www.theaustralian.com.au/in-depth/queensland-floods/payout-boost-for-queensland-flood-victims/story-fn7iwx3v-1226108596967> viewed 11 January 2012.

[19] Northern Grampians Shire Council, Submission 37, p. 2.

[20] Ipswich City Council, Submission 34, p. 4.

[21] Carisbrook Disaster Recovery Centre, Submission 49, p. 2.

[22] LAQ, Submission 44, p. 9.

[23] Committee Hansard, Bridgewater, 26 October 2011, p. 13.

[24] Victorian Legal Assistance Forum (VLAF), Submission 50, p. 5.

[25] Mr Justin Stevenson, Director, Civil Law, Legal Aid Western Australia, Committee Hansard, Kelmscott, 2 August 2011, p. 10.

[26] C Connolly, ‘A consumer perspective on the NDIR Issues Paper’, September 2011, p. 11 <http://www.ndir.gov.au/content/commissionedpapers/2011/consumer_perspective_sept_11.pdf> viewed 8 December 2011.

[27] Committee Hansard, Graceville, 27 September 2011, p. 22.

[28] ICA, ‘General Insurance Code of Practice’, p. 6.

[29] Mr Robert Whelan, Chief Executive Officer, ICA, Committee Hansard, Sydney, 14 October 2011, p. 38.

[30] Mr Robert Scott, Managing Director, Wesfarmers Federation Insurance, Committee Hansard, Sydney, 14 October 2011, p. 41; Bruce K. Gillan, Submission 64, p. 3; Mr Michael Wilkins, Managing Director and Chief Executive Officer, Insurance Australia Group, Committee Hansard, Canberra, 13 October 2011, p. 4.

[31] Mr Doug Olsen, Senior Vice-President, Innisfail District Chamber of Commerce, Industry and Tourism Inc., Committee Hansard, Innisfail, 29 September 2011, p. 4.

[32] Mr Whelan, ICA, Committee Hansard, Sydney, 14 October 2011, p. 44.

[33] The Treasury, ‘Natural Disaster Insurance Review’ September 2011, p. 24.

[34] Buloke Shire Council, Submission 45, p. 11.

[35] Committee survey.

[36] Name withheld, Submission 67, p. 3.

[37] Central Goldfields Shire Council, Submission 27, p. 1.

[38] Cr Nicole Johnston, Councillor for Tennyson, Brisbane, Committee Hansard, Graceville, 27 September 2011, p. 11.

[39] Suncorp Group Limited, Submission 41, p. 15.

[40] Mr Dallas Booth, Chief Executive Officer, National Insurance Brokers Association (NIBA), Committee Hansard, Sydney, 14 October 2011, p. 2.

[41] Buloke Shire Council, Submission 45, p. 19.

[42] Pyrenees Shire Council, Submission 39, p. 2.

[43] Mr John McLinden, Chief Executive Officer, Loddon Shire Council, Committee Hansard, Bridgewater, 26 October 2011, p. 3.

[44] Mr Gregory Little, Municipal Recovery Manager, Northern Grampians Shire Council, Committee Hansard, Charlton, 26 October 2011, p. 6.

[45] Mr Wayne Belcher, General Manager, Corporate and Community Services, Central Goldfields Shire Council, Committee Hansard, Bridgewater, 26 October 2011, p. 5.

[46] Andrew Cripps MP, Submission 60, p. 5.

[47] City of Armadale, Submission 19, p. 3.

[48] A Thompson, ‘Flood Battlers left High and Dry’, Herald Sun, 11 January 2012, p. 10.

[49] Carisbrook Disaster Recovery Centre, Submission 49, p. 2.

[50] Committee Hansard, Rochester, 27 October 2011, p. 14.

[51] Ms Bridget Burton, Coordinator, Consumer Law Service, Caxton Legal Centre, Committee Hansard, Graceville, 27 September 2011, p. 22.

[52] R Barrett, ‘Payout Boost for Queensland Flood Victims’.

[53] Choice et. al., Submission 35, p. 6.

[54] A Thompson, ‘Flood Battlers left High and Dry’, p. 10.

[55] Caxton Legal Centre, Submission 53, p. 35.

[56] NIBA, Submission 46, p. 4.

[57] NIBA, Submission 46, p. 4; Choice et. al., Submission 35, p. 6; Ms Jenny Lawton, Professional Support Lawyer, Victoria Legal Aid, Committee Hansard, Bridgewater, 26 October 2011, p. 14; Legal Aid NSW, Submission 57, p. 22.

[58] Caxton Legal Centre, Submission 53, p. 34; Legal Aid NSW, Submission 57, p. 21.

[59] Cr Johnston, Councillor for Tennyson, Brisbane, Committee Hansard, Graceville, 27 September 2011, p. 11.

[60] G Barlow, ‘Flood Insurance Disputes Continue’, 4 January 2012, Weekly Times Now <http://www.weeklytimesnow.com.au/article/2012/01/04/425781_latest-news.html> viewed 11 January 2012.

[61] Mrs Tammy Tarrant, Submission 11, p. 1.

[62] Ms Erin Cook, Secretary, Bundamba Flood Victims Support Group, Committee Hansard, Ipswich, 27 September 2011, p. 28.

[63] Carisbrook Disaster Recovery Committee, Submission 49, p. 1.

[64] ICA, ‘General Insurance Code of Practice’, p. 6.

[65] Mr Derek Pingel, Coordinator, Lockyer Valley Flood Relief, Committee Hansard, 28 September 2011, p. 33.

[66] Name withheld, Submission 25, p. 2.

[67] ILS, Submission 54.1, p, 32.

[68] Ms Karen Cox, Coordinator, Insurance Law Service, Committee Hansard, Graceville, 27 September 2011, p. 17.

[69] Carisbrook Disaster Recovery Committee, Submission 49, p. 1.

[70] LAQ, Submission 44, p. 3.

[71] LAQ, Submission 44, p. 3.

[72] VLAF, Submission 50, p. 5.

[73] Ms Yvonne Coyne, Executive Director, City of Armadale, Committee Hansard, Kelmscott, 2 August 2011, p. 5.

[74] Buloke Shire Council, Submission 45, p. 16.

[75] Northern Grampians Shire Council, Submission 37, p. 4.

[76] LAQ, Submission 44, p. 6.

[77] Ms Burton, Caxton Legal Centre, Committee Hansard, Graceville, 27 September 2011, p. 25.

[78] Carisbrook Disaster Recovery Committee, Submission 49, p. 2.

[79] Cr Johnston, Councillor for Tennyson, Brisbane, Submission 58, p. 2.

[80] Australian Communications Consumer Action Network, Submission 33, p. 3.

[81] Caxton Legal Centre, Submission 53, p. 29.

[82] ICA, ‘General Insurance Code of Practice’, p. 10.

[83] ICA, ‘General Insurance Code of Practice’, p. 10.

[84] FOS, ‘Submission to NDIR’, pp.14–15, <http://www.ndir.gov.au/content/submissions/
issues_paper_submissions/Financial_Ombudsman_Service_Limited.pdf> viewed 2 December 2011.

[85] Caxton Legal Centre, Submission 53, p. 43.

[86] ILS, Submission 54, p. 12.

[87] Choice et. al., Submission 35, p. 3.

[88] Choice et. al., Submission 35, p. 3.

[89] David Stubbin, Submission 55, p. 3.

[90] Mrs Valerie Kingsley, Committee Hansard, Kelmscott, 2 August 2011, p. 15.

[91] Ms Deborah Olsen, Community Recovery Coordinator, Somerset and Ipswich Regions, Lifeline Uniting Care Community Queensland, Committee Hansard, Ipswich, 27 September 2011, p. 9.

[92] ILS, Submission 54, p. 10.

[93] Mr John Price, Ombudsman General Insurance, FOS, Committee Hansard, Canberra, 15 September 2011, p. 12.

Chapter 6 Dispute resolution processes

[1] Insurance Council of Australia (ICA), ‘General Insurance Code of Practice’, pp. 10–11 <http://www.codeofpractice.com.au/> viewed 8 December 2011.

[2] For example, Australian Securities and Investments Commission notes in a review of internal dispute resolution procedures that insurers demonstrate ‘little consistency … in the collection of an ability to report on information about complaints.’ Australian Securities and Investments Commission, ‘Review of general insurance claims handling and internal dispute resolution procedures’ Report 245, August 2011, p. 33. Also, statistics collected by Financial Ombudsman Service on internal dispute resolution show that of 22 581 disputes for personal and commercial insurance claims, 16 330 related to ‘insurance claims’, 29 to ‘catastrophes and disasters’ and 22 to ‘other relating to Code’. Financial Ombudsman Service, ‘The General Insurance Code of Practice: Overview of the Year 2009/2010, p. 69 <http://www.fos.org.au/
public/download.jsp?id=14819> viewed 9 January 2012.

[3] ICA, ‘General Insurance Code of Practice’, pp. 10–11.

[4] Mr Robert Whelan, Chief Executive Officer, ICA, Committee Hansard, Sydney, 14 October 2011, p. 45.

[5] Mr Keith Oberin, Municipal Emergency Response Manager, Campaspe Shire Council, Rochester, Committee Hansard, 27 October 2011, p. 2.

[6] Mr Mark Nucifora, Chairman, Cassowary Coast Banana Growers Association, Committee Hansard, Innisfail, 29 September 2011, p. 13.

[7] Australian Securities and Investments Commission (ASIC), ‘Regulatory Guide 165: Licensing: Internal and external dispute resolution’, April 2011, p. 24.

[8] ICA, ‘General Insurance Code of Practice’, pp. 10, 11.

[9] Carisbrook Flood Recovery Committee, Submission 49, p. 2.

[10] Central Goldfields Shire Council, Submission 27, p. 2.

[11] Caxton Legal Centre, Submission 53, p. 41.

[12] Caxton Legal Centre, Submission 53, p. 50.

[13] ASIC ‘Regulatory Guide 165’, April 2011, p. 21.

[14] Caxton Legal Centre, Submission 53, p. 48.

[15] Caxton Legal Centre, Submission 53, p. 39.

[16] Insurance Law Service (ILS), Submission 54, p. 12.

[17] Ms Karen Cox, Coordinator, ILS, Committee Hansard, Graceville, 27 September 2011, p. 17.

[18] Caxton Legal Centre, Submission 53, p. 39.

[19] ASIC, ‘Review of general insurance claims handling and internal dispute resolution procedures’ Report 245, August 2011, p. 34.

[20] Legal Aid NSW, Submission 57, p. 7.

[21] ILS, Submission 54, p. 12.

[22] ASIC, ‘Review of general insurance claims handling and internal dispute resolution procedures’ Report 245, August 2011, p. 34.

[23] ILS, Submission 54, p. 7.

[24] Financial Ombudsman Service (FOS), ‘2010-2011 Annual Review’, pp. 20, 36, 51 <http://www.fos.org.au/centric/home_page/publications/annual_review.jsp> viewed 8 December 2011.

[25] FOS, ‘2010-2011 Annual Review’, p. 36.

[26] ASIC, ‘Review of general insurance claims handling and internal dispute resolution procedures’ Report 245, August 2011, p. 38.

[27] FOS, Submission 47, p. 5.

[28] ASIC, ‘Review of general insurance claims handling and internal dispute resolution procedures’ Report 245, August 2011, p. 36.

[29] ILS, Submission 54.1, p. 49.

[30] Choice, the Consumer Action Law Centre, Financial Counselling Australia and the Footscray Community Legal Centre (Choice et. al.), Submission 35, p. 3.

[31] FOS, Submission 47, p. 5.

[32] The Treasury, ‘Natural Disaster Insurance Review: Inquiry into flood insurance and related matters’ September 2011, p. 11.

[33] Choice et. al., Submission 35, p. 4.

[34] Mr John Price, Ombudsman General Insurance, FOS, Committee Hansard, Canberra, 15 September 2011, p. 6.

[35] Mr Price, FOS, Committee Hansard, Canberra, 15 September 2011, p. 6.

[36] FOS, Submission 47, p. 20.

[37] FOS, ‘2010-2011 Annual Review’, p. 59.

[38] FOS, ‘2010-2011 Annual Review’, p. 65.

[39] Ms Cox, ILS, Committee Hansard, Graceville, 27 September 2011, p. 17.

[41] Northern Grampians Shire Council, Submission 37, p. 4; Buloke Shire Council, Submission 45, p. 11; Cr Graeme Lehman, Mayor, Somerset Regional Council, Committee Hansard, Ipswich, 27 September 2011, p. 17.

[42] Mr Price, FOS, Committee Hansard, Canberra, 15 September 2011, p. 11.

[43] FOS, ‘Terms of Reference’, p. 8 <http://www.fos.org.au/public/download.jsp?id=17224> viewed 6 January 2012.

[44] Mr Noel Roberts, Owner, Ace Computer World, Committee Hansard, Ipswich, 27 September 2010, p. 22.

[45] Mr Price, FOS, Committee Hansard, Canberra, 15 September 2011, p. 10.

[46] Mr Price, FOS, Committee Hansard, Canberra, 15 September 2011, p. 11.

[47] Victorian Legal Aid Forum (VLAF), Submission 50, p. 5.

[48] Caxton Legal Centre, Submission 53, p. 37.

[49] Queensland Government, Submission 13, p. 6.

[50] Committee survey.

[51] National Pro Bono Resource Centre, Submission 15.1, p. 15.

[52] Mr Price, FOS, Committee Hansard, Canberra, 15 September 2011, pp. 6–7.

[53] FOS, Submission 47, p. 20.

[54] National Insurance Brokers Association, Submission 36, p. 7.

[55] FOS, Submission 47, p. 21.

[56] Mr Price, FOS Committee Hansard, Canberra, 15 September 2011, pp. 7–8.

[57] Mr Holmes, Legal Aid Queensland, Committee Hansard, Graceville, 27 September 2010, p. 18.

[58] Caxton Legal Centre, Submission 53, p. 55.

[59] Choice et. al., Submission 35, p. 6.

[60] ILS, Submission 54, p. 15.

[61] VLAF, Submission 50, p. 8.

[62] Queensland Government, Submission 13, p. 5.

[63] Mr Justin Stevenson, Director, Civil Law, Legal Aid Western Australia, Committee Hansard, Kelmscott, 2 August 2011, p. 9.

[64] VLAF, Submission 50, p. 7.

[65] FOS, Submission 47, p. 22.

[66] The Treasury, ‘Natural Disaster Insurance Review’ September 2011, p. 17.

[67] Ms Bridget Lawton, Coordinator, Consumer Law Service, Caxton Legal Centre, Committee Hansard, Bridgewater, 26 October 2011, p. 12.

[68] Legal Aid NSW, Submission 57, p. 32.

[69] Choice et. al., Submission 35, p. 9.

[70] T Thompson, ‘Insurers jack up Rates as Victims struggle on’, Courier Mail, 9 January 2012, p. 5.

[71] Choice et. al., Submission 35, pp. 7, 8.

Chapter 7 Recommendations

[1] Cr Paul Pisasale, Mayor, City Ipswich Council, Committee Hansard, Ipswich, 27 September 2011, p. 7.

[2] M Smith, ‘Climate Change a Risk but Impact’s Unclear’, Australian Financial Review, 16 January 2012, p. 56.

[3] The Treasury, ‘Natural Disaster Insurance Review: Inquiry into flood insurance and related matters’ September 2011, p. 107.

[4] Proposed changes to the General Insurance Code of Practice, 28 November 2011.

[5] Financial Ombudsman Service, ‘Comparative Tables 2010–2011’ <http://fos.org.au/
centric/home_page/publications/comparative_tables/comparative_tables_20102011.jsp> viewed 14 February 2012.

[6] Canstar Cannex, ‘Home and Contents Star Ratings’, Report No. 4, October 2011, p. 2 <http://www.canstar.com.au/images/star_ratings_reports/home-and-contents-insurance-oct-2011.pdf> viewed 8 December 2011.

[7] Canstar Cannex, ‘Home and Contents Star Ratings’, Report No. 4, October 2011, p. 2.

[8] Mr John Ripepi, Chief Executive Officer, Wesfarmers Federation Insurance, Committee Hansard, Sydney, 14 October 2011, p. 11.

[9] Mr Peter McCarthy, Chairman, General Insurance Practice Committee, and Mr Daniel Smith, Director, Actuaries Institute of Australia, Committee Hansard, Canberra, 3 November, p. 6.

[10] G Downie, ‘Residents hit by Big Rise in Flood Premiums’, Canberra Times, 9 January 2012, p. 2; D Gough and G Wilkins, ‘Home Insurance Premiums to Skyrocket’, Sunday Age, 15 January 2012, p. 3; Geelong Advertiser, ‘Pensioner cops 600pc Hike in Insurance Bill’ <http://www.geelongadvertiser.com.au/article/2012/01/11/301451_news.html> viewed 11 January 2012.

[11] G Bullock, ‘Disasters: The first rule is take cover’, Weekend Australian, 21 January 2012, p. 29.

[12] Mrs Rosemary Menkens MP, Member for Burdekin, Queensland, Committee Hansard, Innisfail, 29 September 2011, p. 31.