Oireachtas committee urged to grill insurance industry on flood claims

An Oireachtas committee has been asked to grill the insurance industry about its handling of flood claims from stricken parts of Cork City and County.

Fine Gael TD Jerry Buttimer said he had evidence that some insurance companies were dragging their heels when it came to dealing with claims from householders and business owners in certain areas whose premises were destroyed in last week’s flood.

The Cork South Central TD also said there were indications that some companies would hike premiums in these areas, or refuse to provide flood cover at all in future.

He cited one example of a business premises in Bandon, which suffered tens of thousands of euro worth of damage in a 2010 flood, which is still waiting for its insurance company to pay out.

“It is scandalous the way some in the insurance industry are dealing with flood victims in Cork,” said Mr Buttimer.

He raised the issue in the Dáil yesterday and said the State must hold the insurance industry to account.

Taoiseach Enda Kenny said he had sympathy for those whose homes and businesses have been destroyed.

“I’m quite sure that the insurance companies will be happy to attend at the appropriate Oireachtas committee to explain the reasons for their decisions,” he said.

Mr Buttimer has written to the chairman of the joint committee on finance asking him to invite the insurance industry to appear before it.

He said the industry must be held to account on how it interacted and engaged with residents and business owners, especially those in areas which had never experienced flooding before.

“It’s becoming too easy for insurance companies to opt out. There are now certain areas of the city, in particular, that have never flooded, yet are being refused insurance cover,” said Mr Buttimer.

Meanwhile, Senator Colm Burke, who visited the devastated Meadowbrook estate near Glanmire at the weekend, has called on insurance companies to make an initial and immediate payment of €3,000 to their policy holders whose homes and businesses have been affected.

“I believe that once insurance companies receive a notice of claim from a property owner, this initial payment should be immediately made, with the full assessment of the claim then being made,” he said.

“This payment would help to relieve, in a small way, the financial pressure which the affected property and business owners are now faced with.”