Floods tend to bring out the best in people - and the worst in insurance companies.
The recent torrential downpours at Coffs Harbour on the New South Wales Central Coast once again prove the horror of being insured with a company which will do anything and everything to refuse a claim.
Take the case of the two neighbours near Coffs Creek at Coffs Harbour.
NRMA Insurance quickly and happily paid a $6000 "storm water" damage claim to one couple.
Their neighbours - insured with the Auto and General Insurance Company - were denied their $7000 claim on the basis that their damage was caused by "flood waters".
This was the same day, same storm, same creek and same inundation!
Yet, Auto and General Insurance Company used its own powerful and shrewd policy interpretation to deny what were considered as legitimate claims by their competitors.
Consumer Watch spokesman Paul Tully says AGIC is a national disgrace.
"Consumers should dump AGIC and get on board with a company that is motivated by factors other than sheer greed.
"AGIC seems to have only two corporate aims - taking people's money and denying people's claims."
He said all Australian insurance companies should follow the lead of Suncorp in Queensland and provide automatic flood insurance cover on all of its household policies.
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CR PAUL TULLY: paul@tully.org.au
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