Insurance firms ‘not behind compo delays’

THE Irish Insurance Federation (IIF) has insisted the industry is not responsible for the delays faced by policy holders who have yet to be compensated for flood damage caused eight months ago.

Speaking to the Irish Examiner, the umbrella group’s manager of non-life insurance, Michael Horan, said despite growing anger over the inadequate payouts to flood victims, no insurance firm was deliberately holding back financial support.

Since the crisis last November, a total of 1,800 flood damage insurance claims have been made in Cork, including 1,150 from ordinary citizens and 650 from the commercial sector.

The insurance market believes the damage has cost the county €141 million, of which €21m is related to homes.

However, while only a fraction of this figure has been paid out to insurance policy shareholders facing the expense, IIF representative Mr Horan said companies are doing all they can to speed up compensation payouts.

“The majority of them [claims] have been resolved. I know it takes time for the more serious damage to dry out, which could be delaying some cases,” said Mr Horan, who was unable to clarify how many claims have been resolved.

“Under our household policy the cover is to repair buildings or to replace what is damaged.

“Obviously insurance companies will meet reasonable claims, but the aim of the policy is to put you back in the same position before the loss, not to put you back in a better position,” he said.

The Cork branch of the St Vincent de Paul contradicted the claims, with local representative Brendan Dempsey insisting that several hundred people are being “screwed” by companies who are meant to protect them.

A recent questionnaire sent out by the group to flood victims has found that some people are facing costs of up to €80,000 which insurance firms have refused to fully pay.

In the four worst household cases outlined by Mr Dempsey, the combined flood damage cost is €225,000.

Flood victims support groups, local politicians and charity organisations have suggested the delay in the Oireachtas Environment Committee findings on what caused or exacerbated the crisis last November are contributing to the lack of firm conclusions in a number of flood damage claims.

However, Mr Horan insisted this was not the case.

“Between insurance firms and policy holders, who is at fault for what happened is immaterial. It may be that an insurance company might have a right of recovery against someone or some group which caused the damage, but that is for a different day. The household insurance policy says you’re covered for certain things,” he said.

* The IIF has asked anyone facing difficulties in resolving insurance claim disputes to contact their information line on 01-6761914, or their email address [e-mail]