Fight against insurance
A GROUP of unit owners on the Gold Coast want to form a cooperative insurance scheme to combat the spike in premiums and are inviting unit owners from the Far North to join in their crusade.
While unit owners on the Gold Coast are experiencing 50 per cent hikes in their insurance premiums, it is nothing compared to unit owners in the Douglas region, with reports of 300 per cent increases.
The Queensland Body Corporate Association is seeking interest from body corporate committees throughout the state to see if there is enough support to form the cooperative insurance scheme.
The scheme would remove the middle layer, including body corporate managers, which would potentially save costs and insure those who currently cannot get insurance.
Federal Member for Leichhardt Warren Entsch said the initiative was a start in the right direction but more needed to be done from the Government to address this dire issue.
“It’s about time we recognised these insurance companies are cherry-picking their markets to maximise their profitability,” he said.
“The Insurance Council of Australia refuses to acknowledge there’s a problem and Senator McLucas is saying everything is fine, all you have to do is shop around - one guy has been knocked back by 13 companies even though he has never made a claim.
“The reality is the problem is becoming worse.”
Mr Entsch is still battling to get the ICA to support his private members bill, which he said aims to make insurance companies provide affordable insurance for all or be prohibited from selling their product throughout Australia.
“The Government should be underwriting it because it’s absolute market failure and Swan (Deputy Prime Minister and treasurer Wayne Swan) is trying to pull out $400 million out of the underwriting for terrorism insurance to fill up the budget deficit, but it could go to another scheme to help North Queensland fix their problem,” he said.
“It doesn’t need to be permanent, just until we can get others into the market prepared to support us.”
To express your interest in joining a cooperative insurance scheme email the Queensland Body Corproate Association at firstname.lastname@example.org and for more information on MP Entsch’s Private Member’s Motion go to his website www.warrenentsch.com.au.