Fianna Fáil demands action on flood insurance
The hardline stance came after the Government unveiled a memo of understanding with the industry which Office of Public Works Minister Brian Hayes admitted might not lead to better cover for people in danger zones.
The uncertainty led Fianna Fáil’s environment spokesperson Barry Cowen to demand the Government take a stronger line with the insurance industry.
“Where flood defences have been put in place there should be some move to force insurance companies to provide cover,” he said.
Mr Hayes said the new agreement with Insurance Ireland would see government information about new flood defences sent to companies so they can include it in their risk assessment.
However, Mr Hayes admitted that did not mean people in those areas could now expect to get cover.
Asked if the insurance industry was dragging its feet on the issue, the minister said: “Well, we will soon see I suppose.
“I think they are very sincere about resolving this issue. It’s the first step on a road that we need to take together,” he said.
Mr Hayes said the new agreement was needed because insurance companies claimed they were not receiving flood defence information in a usable format before.
“I hope it will lead to more communities and residents getting the kind of cover they deserve. This information will now appear on their monitors when you ring to try and get insurance again.
“It can’t guarantee flood insurance. But what it does guarantee is that for the first time they have systematic and verifiable information from us which will help their underwriters gain an appreciation of the work that we have done,” Mr Hayes told RTÉ.
The minister said the deal would be reviewed if companies continued to fail to provide adequate cover.
Under the agreement, the OPW will share information on the extent, design, and nature of flood protections being provided.
Insurance Ireland said it could not estimate how many households would benefit from the new arrangement before it goes live in June.
The group said €750m had been paid out in claims since 2000 as the result of nine big floods.
Mr Hayes claimed €1bn had been saved in potential damages by the State spending €370m on flood defences since 1995.
The Government has refused to rule out imposing a 1% levy on all non-life insurance policies to create a fund to cover the 50,000 homes and businesses denied cover because of risk of flooding.
