Qld: Insurers may review policies on blackouts

AAP General News (Australia)
08-07-2004
Qld: Insurers may review policies on blackouts

BRISBANE, Aug 7 AAP - The threat of electricity blackouts this summer may force some
insurance companies to review their policies, the Insurance Council of Australia Queensland
manager Graham Jones said today.

Last summer, claims related to power loss cost insurers hundreds of thousands of dollars,
Mr Jones said.

This could mean businesses could face higher excess provisions or may not be able to
lodge claims for lost produce, such as spoiled food in shops and restaurants.

"Like any event, insurance companies will certainly look at what's happening, what
their claims are and what cover they are prepared to provide," Mr Jones told AAP today.

"It's possible companies may impose a larger excess and they may review their wordings
but to the best of my knowledge, it's not on any insurers' radar at the moment.

"The basis of insurance is about fortuitous or accidental events, not inevitable events,
so it's something they will need to look at and each individual insurer will look at their
own position."

He advised small businesses to talk to their insurance companies to determine the extent
of their cover in the event of further blackouts in the summer storms, Mr Jones said.

The Insurance Council has warned that businesses may not be able to lodge claims for
lost produce if blackouts were deemed to be normal seasonal factors.

Storm damage currently is provided as a standard benefit under all insurance policies.

Premier Peter Beattie this week said the government had invested the profits of Energex
and another state-owned power supplier, Ergon Energy, in essentials such as health and
education.

But he said the dividends had had no effect on the state of the power network.

AAP rad/sjb

KEYWORD: ENERGY INSURANCE

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