Urgent Need For Insurance Policy Simplification

SYDNEY – January 25, 2011: “One can have nothing but sympathy for those affected by the recent widespread floods,” says David Purchase, Executive Director of VACC.

“As they get their lives back together and commence the heart breaking task of repairing their properties and businesses, we all need to be as generous as we can in assisting them.”

“Similarly while insurance companies need to be generous and thoughtful in their interpretation of their policies, they cannot be called upon to carry the can. They are businesses to and need to survive.”

“In some recent utterances, some government spokespersons have almost threatened insurers to do much more than they should reasonably be called upon to do.”

“In saying this, VACC is no defender of insurance companies, who continually engage in what we regard as unfair conduct toward our crash repair members.”

“Calls for insurers to make their insurance policies much clearer about what is and what is not covered are entirely legitimate, whether it be about flood related damage or motor vehicle damage.”

“While policyholders have an obligation to read their policies, often one has to be a “Philadelphia lawyer” to understand the words and context.”

“So, therefore, VACC strongly endorses the calls for insurers to simplify their policies across the board, something which VACC has been banging the drum about for a long time.”

“It’s a shame that its takes a disaster, like the recent floods, to get people and governments to focus on the urgent need of policy simplification”, concluded Mr Purchase.