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Crisp urges insurance holders to check policies

Peter Crisp - Monday, June 18, 2012

Member for Mildura, Peter Crisp, has again urged constituents to shop around for insurance company options in relation to charges for the Fire Services Levy on their premiums.

Mr Crisp said the Government had not increased the Fire Services Levy that is included in insurance premiums and urged policy holders to check their insurance renewals carefully.

“When the Coalition was elected to Government in Victoria we promised to replace the Fire Services Levy with a fairer, more equitable property-based levy in the 2013-14 financial year and this is still the case” Mr Crisp said.

The Victorian Coalition Government adopted all Bushfires Royal Commission recommendations including that the Fire Services Levy be replaced with a property-based levy and to introduce concessions for low-income earners.

Mr Crisp said the Coalition Government will introduce a new levy that at long last ensures all Victorian property owners will pay a fair contribution to fire services, while ensuring Victoria's fire services continue to operate equitably and with sufficient resources.

“The Government’s timeline made it clear that the 2012-13 financial year is a transition year and we will be working with the industry to ensure the Fire Services Levy is administered fairly during this period,” Mr Crisp said.

“In fact, in the recent budget there was a reduction of 9.6 per cent in the amount required to fund the insurance contribution to our fire brigades.

“The charges being made on premiums for the Fire Services Levy differs between insurance companies and any increase in the percentage they charge is a decision of the individual insurance company,” he said.

Mr Crisp has recommended you ask your insurance company to explain any increases on your premium and, if you are not satisfied with their response, consult with other companies and shop around.

SHOP AROUND FOR PROPERTY INSURANCE

Peter Crisp - Thursday, February 09, 2012

People outraged at massive increases in insurance premiums should shop around if they are unable to negotiate satisfactory property insurance with their existing insurer, The Nationals Member for Mildura, Peter Crisp, said today.

Speaking following a meeting between The Nationals and Paul Northey, General Manager, Insurance RACV, Mr Crisp said it was clear some insurance companies, including RACV, had made a business decision to include flood insurance as a compulsory component of property and contents insurance.

Other insurance companies are offering clients the option of ‘opting out’ of flood insurance, he said.

RACV said they have considered the possibility of extreme flood events in calculating their flood insurance premiums, however these events may occur as infrequently as once per 10,000 years.

Whilst most damage is caused when floods go above floor level, RACV have also factored in the cost of claims for lower level floods.

RACV have taken a business decision to make flood insurance compulsory to avoid uncertainty during the stressful time after flood and/or storm damage. They acknowledge that the flood data is of varying degree of accuracy and are committed to ongoing improvement.

Based on this clear statement of RACV’s (and some other companies) position, we advise people to attempt to negotiate a flood premium which they consider acceptable with their existing insurer.

If these attempts are unsatisfactory then we encourage people to ‘shop around’. Other companies are offering optional flood insurance and the option of accepting a higher excess to reduce premiums should also be explored.

RACV and some other companies have made a business decision to make flood insurance compulsory and have factored quite low probability events into the setting of their premium. If clients, some of whom have been with the one company for many years, are not satisfied with the resultant premium then they should ‘shop around’ insurance companies.

Whatever people finally settle on they should make sure that it is in writing and that they understand the extent of the cover which they have purchased, Mr Crisp concluded.

INSURANCE PREMIUM INCREASES CAUSE PAIN

Peter Crisp - Wednesday, January 25, 2012

The National Member for Mildura, Peter Crisp, said residents across much of the Mildura electorate have expressed outrage at massive increases in property insurance premiums.

“I am disappointed insurance companies are including compulsory flood coverage on insurance policies along with increases in premiums,” Mr Crisp said.

“Many of those constituents, who have contacted my office, have informed me their property is not in a flood prone area.

“Should insurance premiums continue to rise, it may well reach a stage where people simply cannot afford to have property insurance.”

Mr Crisp also said that as a result of the Bushfire Royal commission the Victorian Coalition Government had called for community consultation for the design and implementation of a fairer, more equitable system to fund fire services in Victoria.

“The Coalition Government in adopting the Bushfires Royal Commission recommendations will introduce a new levy that ensures all Victorian property owners pay a fairer contribution to the state's fire services, while ensuring Victoria's fire services continue to operate with sufficient resources,” Mr Crisp said.

“History shows us that appropriately fire-fighting services are vital to the preservation of life and property and it is to be hoped that insurance companies do not take advantage in the aftermath of natural disasters,” Mr Crisp said.


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Contact: Electorate Office: PO Box 3225, MILDURA 3502. Phone: (03) 5021 2828