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I read in another post that pick up of flood affested damaged stuff was included in most insurance policies. I notice that the insurance companies did not make this clear publicly while thousands of volenteers took trailer loads of stuff to the tip, saving the insurance companies a FORTUNE.

Quick calculation.

22,000 registered volenteers ( and about 3 times more unregistered )
lets say they worked for 10 hours per day for 3 days and that half of that time was spent taking stuff to the tip.
And an average clean up person is paid $25 per hour ( and it costs a bit more including workers comp etc ), so lets say $30 per hour. Plus the use of a vehicle and trailer approx another $15 per hour.

so $45 x 15 x 88,000= $59,400,000

Nearly $60 million

AND STILL they are arguing about the definition of FLOOD, RISING WATER, RUNOFF Etc

*************UNBELIEVABLE************************

Gordo'
 

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As has been the case in every recent flood in Australia, the different stance on the definition of flood by difference companies has come under major criticism. For the record, the insurance industry banded together in 2010 to develop a common definition across all insurers however the ACCC put a stop to it under the premption that it was colusion and that all insurers could not have the same definition.

As part of the financial services sector, insurance companies are bound by a number of financial codes legislations.

What doesn't get any press is that insurance companies buy reinsurance to protect themselves from financial ruin in the event of catastrophes (such as the QLD and VIC floods). This too is a financial contract which is bound by the terms and conditions within.

When it comes to paying claims outside the scope of the policy (such as flood) insurers aren't allowed to deviate from their contracts. The contracts with reinsurers won't allow for claims to be paid outside the scope of the policy.

Not all insurance policies are the same and as a policy holder, you are buying a contract to indemnify you under the terms and conditions of the contract after an insured event occurs.
 
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