Insurers urged to adopt flood definition

The Qld premier says insurers who used tricky wording to avoid paying policy holders who were in thigh-high water should adopt a standard flood definition. The federal government last week released its response to the 47 recommendations of the Natural Disaster Insurance Review, proposing a standard definition to ensure last summer's insurance woes are not repeated. Some people received insurance payouts while their neighbours did not, depending on the way their insurers defined flood. Premier Anna Bligh on Thursday said it would take some time for the federal government to get the regulations in place. Ms Bligh has written to the Insurance Council of Australia urging insurers to adopt the changes ahead of what is forecast to be another troublesome summer. 'There is absolutely no prohibition on any insurance company accepting that new definition ona voluntary basis,' Ms Bligh told parliament on Thursday. 'If they did that before the next wet season we would find more Queenslanders protected in the event that we do see this kind of flooding.' Ms Bligh said MPs on both sides of the house had been contacted by constituents whose insurance policies defined flood differently to the flood they experienced. 'I'm of the view that if you're standing in your lounge room and the water is up to your thighs, you've been flooded,' she said. 'And I think that's how most people feel. 'They were devastated to find that there was some tricky wording in some policies that meant those companies could avoid responsibility.' About 2.5 million people were affected and at least 35 died when more than 70 per cent of Queensland flooded last summer. Ms Bligh tabled to parliament a Disaster Readiness Update, detailing what had been done to prepare the state for future storm seasons. 'We are well prepared for anything that might be thrown at us this summer and we are determined to learn from the past,' she said. The Queensland Floods Commission of Inquiry in its August interim report made 175 recommendations. The premier's update shows 81 of the 105 recommendations relevant to the state government have so far been completed. Of the 24 recommendations underway, 10 will be implemented by December 31 this year. The other 14 recommendations relate to 'ongoing complex' issues, including the final reviews of several dam manuals. The commission is due to deliver its final report in February.