Storm Insurance Ploy Riles Martin
Illawarra Mercury
Saturday March 6, 1999
It was appalling insurer QBE was using storm victims as a ``bartering chip" against any government in an attempt to get changes to the industry, Cunningham MP Stephen Martin said yesterday.
``They want their policyholders to be hung out to dry, to coin a phrase, while they play politics," he said.
Mr Martin was commenting on a report in yesterday's Illawarra Mercury which said QBE was holding 22 storm victims to ransom as it tried to heavy governments in the wake of last year's devastating rains.
The company's chief executive Raymond Jones has admitted QBE has not paid these people because it wants to keep the issue ``on the public agenda".
In a video-taped meeting between QBE and Wollongong insurance justice advocates, Mr Jones admitted that his company's strategy was a deliberate ploy to force governments into action.
But on Thursday, Mr Jones disputed claims that these policyholders were being used as pawns.
He claimed QBE was taking a responsible approach to issues raised by last year's deluge.
Mr Martin said yesterday he intended to raise the matter in Federal Parliament next week.
He also planned to ask Prime Minister John Howard what had happened to the call from Illawarra politicians for an inquiry into the insurance industry.
``I wrote to the Prime Minister about this on December 1 last year," he said.
Mr Martin said he understood the issue had gone to Finance Minister John Fahey but he had referred it to the Prime Minister's office.
© 1999 Illawarra Mercury