As Tropical Cyclone Alfred approaches Queensland & Northern NSW, it is appropriate for general insurers, underwriting agencies, brokers, insurance claim managers and service suppliers to consider how the GI Code of Practce (Code) responds to Catastrophes.
Firstly, for consumers the ICA has advised, where possible, to prepare, residents should:
- Clear their property and gutters from loose material that possibly cause injury or damage during extreme winds or heavy rain, including moving outdoor furniture and pool accessories
- Secure boats or vehicles and move their car under cover
- Place important documents and valuables in plastic bags or other waterproof containers and put in a safe place
- Check your emergency kit is ready and nearby Insurance disaster response specialists are on standby, and the Insurance Council is liaising with the State Government, Queensland Reconstruction Authority and the National Emergency Management Agency in preparation.
Code overarching obligations
Insurers & their Distributors and Service Suppliers will be honest, efficient, fair, transparent and timely in dealings with customers. This is the Code’s overarching obligation to consumers and continues during Catastrophes (paragraph 21)
Fast-tracking urgent claims
Where an event (for example, a natural disaster) caused an insured to be in urgent financial need of the benefits they are entitled to under the policy, insurers we will do either or both of the following:
- fast-track both the insurers assessment of the claim and the process followed to make a decision about the claim;
- pay an advance amount to help ease an urgent financial need — insurers will do this within 5 Business Days after demonstration of an urgent financial need.
If the insured is not happy with the insurers response to a request about urgent financial need, then the insurer must tell the insured about their Complaints process.
(paragraphs 64-66)
Claims for total loss
When an insured has suffered a total loss, the insurer and Service Suppliers will treat the claim with sensitivity. If the claim has been accepted for a total loss under a home building and home contents insurance policy and the insured is unable to provide proof of ownership for the relevant insured property because it was lost in or damaged by the insured event (and ownership is clear) insurers will not:
- require proof of ownership; or
- require a list of insured property that was lost or damaged.
(paragraph 80)
Responding to Catastrophes
- Insurers will respond to Catastrophes efficiently, professionally, practically and compassionately.
- Insurers will co-operate and work with the Insurance Council of Australia on industry coordination and communications under the Insurance Council of Australia’s industry Catastrophe coordination arrangements.
- If an insured has a property claim resulting from a Catastrophe and the insurer has finalised the claim within 1 month after the Catastrophe event causing the loss, the insured can request a review of the claim if they think that assessment of the loss was not complete or accurate, even though a release was signed. Insureds have up to 12 months from the date of finalisation of the claim to ask for a review of the claim. Insurers will inform the insured in writing about this entitlement and their Complaints process when finalising the claim
(paragraphs 88-90)
Supporting customers experiencing vulnerability
It should be expected that anyone who experiences a traumatic situation such as a cyclone and subsequent flooding is vulnerable for a period of time.
Insurers are committed to taking extra care with customers who experience vulnerability. Insurers recognise that a person’s vulnerabilities can give rise to unique needs, and that their needs can change over time and in response to particular situations (such as during and after a cyclone/flooding).
If due to a vulnerability, a customer needs additional support or assistance, insurers will work with them and try to find a suitable, sensitive and compassionate way to proceed. Insurers will do this as early as practicable and will protect the insured’s right to privacy.
(paragraphs 91 and 97)
Financial Hardship
An insured has a right to ask an insurer to fast-track a claim if they have an urgent financial need.
(Paragraph 104)
Complaints
An insured may complain to an insurer about any aspect of their relationship with the insurer. This includes servcie suppliers and repairers appointed by the insurer.
Complaints will be handled in accordance with the Code and RG 271.
(paragraphs 139 and 141)
Access to information
Upon request, insurers must provide— free of charge, access to any information (including experts reports) that they relied on in handling a claim, or in responding to a Complaint. Insurers must give this information within 10 Business Days for copies of any Service Suppliers’ or External Experts’ reports or Complaints.
(paragraps 82, 151 and 161)
Reporting Code breaches
Anyone can report alleged breaches of the Code to the Code Governance Committee at any time.
(paragraph 164)