Insurer won't offer new policies for two Qld towns
Monday May 7, 2012 - 07:25 EST




Flooded house at Roma in February, 2012. -



Queensland's biggest insurer Suncorp will no longer offer new policies in two regional towns until flood mitigation works are carried out.

Roma, in southern inland Queensland, and Emerald in the state's central region, have been devastated by major flooding in recent years.

The insurer says it has paid out $150 million in claims from residents.

Suncorp spokesman Jason McCracken says no new policies will be offered until levees are built.

"We're trying to encourage local government, State Government, to start taking some action - I think the time for talking is over," he said.

"We're keen to see something happen before we head into this storm season later in the year.

"We certainly don't want our policy holders and the rest of the country - the rest of Queenslanders - to be funding a situation when flood mitigation can be taking place."

However, Central Highlands Mayor Peter Maguire says the council has written to Suncorp asking them to reverse its decision.

He says recent floods show not all of Emerald is at risk.

"Where we are developing the town on the eastern side of the town, the great 99 per cent of the land over that side does not flood," he said.

"We'd like to get them to relook at the whole process."

Meanwhile, Maranoa Mayor Robert Loughnan says the decision is an insult to Roma residents.

"Very, very disappointed in that outcome at this stage, because as the biggest insurance company, there's no doubt a couple of the others will follow suit - so very disappointed," he said.


-ABC (Off Weatherzone website)