Issued : Thursday 18 November, 2010

At Tuesday night’s meeting of Bandon Town Council, Labour Party Councillor, Gearóid Buckley proposed a motion (see below) calling for the implementation of a nationwide State guaranteed insurance scheme to cover the property of those affected by flooding.

Cllr. Buckley expressed disappointment that the motion was not adopted in full but said he was happy that the overall principal of the motion was accepted by all members.

Cllr. Buckley said, ‘We are now exactly one year on from the flooding disaster of November 2009. The difficult thing to understand is that Bandon is still at the same risk of flooding as this time last year. This is because little substantial flood relief works have been carried out in the town in the intervening 12 months. This leaves residents and traders in a very difficult and scary position.

‘On top of that, many of last year’s flood victims in Bandon have yet to receive any compensation from their insurance companies. This is totally unacceptable considering that most insurance companies were able to increase their premiums over-night following the flooding.

‘In the current economic climate, small businesses are being put to the pin of their collar to survive as it is. Cash flow is obviously a major issue. I spoke to one family where their insurance company have promised to pay them a “small amount” of their compensation as a gesture before Christmas. This family have been out of their home since November of last year.

‘It is clear that insurance policy holders are being put on the long finger by insurance companies. Many residents and traders in Bandon feel victimised all over again as the bureaucracy and red tape always favours the large insurance company.

‘As well as this, many have found it next to impossible to get insurance to cover there property into the future. A solution needs to be put in place.

‘It is important that public representatives put forward positive solutions to the problems faced by businesses and members of the public. I believe that my motion could be useful in preventing this problem in the future. I know that it has worked in the past in the United States.

‘The Government needs to take some action that will entice private insurance companies to cover those most at risk until such time a complete range of flood relief works can be carried out. It must put in place something like I have proposed or else it should legislate to protect property owners and policy holders.’

ENDS

See motion below

“That this Council write to the Minister for the Environment, Heritage and Local Government and request that his office investigate the possibility of implementing a state guaranteed insurance scheme. Such a scheme would be made available to both domestic and commercial users where they have been denied insurance from all private insurance providers because of excessive loadings beyond their control, for example flooding,

“This scheme should be operated independently or on behalf of the Government by a third party.

“All clients of this scheme must provide relevant evidence of being denied insurance cover.

“Any premiums should reflect current market prices. (For example average prices from private insurance providers +10%)

“An initial central government investment will be required but should be returned once the scheme has initially broken even. Any monies generated thereafter be transferred to the Office of Public Works (or relevant authority), so it can carry out works, which are required so that scheme clients may apply for insurance through private insurance providers.”