❓ A WA parliamentary question addresses the impact of the HIH collapse on builders' indemnity insurance, particularly regarding limitations imposed by insurance companies. The government acknowledges the issue and outlines steps taken to mitigate the impact, while also pointing to Commonwealth responsibility.
AnsweredQoN 941Legislative Assembly
QuestionView source ↗
(1) Is the Minister aware of continuing problems for builders in the demands being made on them by insurance companies for housing indemnity insurance in the wake of the HIH collapse?
(2) Is the Minister aware that in at least one case a builder with a sound record of 37 years in the building industry has been placed on a ‘limit’ for such indemnity insurance?
(3) Does the Government accept that this and other builders are having to accept limits on their business when the fault is not of their own making?
(4) Does the Government endorse the notion of builders of good repute having to bear the brunt of the collapse of one major insurer?
(5) Does the Government acknowledge that such limitations and restrictions on builders with unblemished records make it difficult, or even impossible, for younger men and women to enter the industry?
(6) What action is the Government taking to insist that large insurance companies are not exploiting clients who have given many years of honest service to the building industry?
(2) Is the Minister aware that in at least one case a builder with a sound record of 37 years in the building industry has been placed on a ‘limit’ for such indemnity insurance?
(3) Does the Government accept that this and other builders are having to accept limits on their business when the fault is not of their own making?
(4) Does the Government endorse the notion of builders of good repute having to bear the brunt of the collapse of one major insurer?
(5) Does the Government acknowledge that such limitations and restrictions on builders with unblemished records make it difficult, or even impossible, for younger men and women to enter the industry?
(6) What action is the Government taking to insist that large insurance companies are not exploiting clients who have given many years of honest service to the building industry?
AnswerView source ↗
Answered
18 September 2001
Responded by
Minister for Consumer and Employment Protection
Response time
20 days
(3-6) The State Government believes the Commonwealth should have been more active to prevent the HIH collapse as it occurred despite the Commonwealth having the responsibility for the regulation of the insurance industry. The State Government also believes the Commonwealth should do more to assist those in the community who are experiencing difficulties following the collapse. The State Government remains concerned at the impact of the collapse of HIH on the home building industry, though the situation appears to have eased due to its various initiatives. Apart from establishing the Home Indemnity Insurance Forum, to date the Government has put in place a number of measures to assist consumers and industry. Such measures include: A rescue package to benefit both builders and consumers by allowing some builders who had HIH indemnity insurance, but who had been unable to secure alternative cover, to get building licences released by local authorities and proceed with their stalled projects; The provision of training seminars to builders on how to most effectively apply for HII; and The reopening of the statutory review of the HII provisions of the Home Building Contracts Act 1991. The State Government continues to work with key stakeholders (by way of the Home Indemnity Insurance Forum) to examine the various issues confronting all sections of the home building industry in this regard. That Forum has recently provided me with their report containing recommendations to address the long term issues confronting the industry following the HIH collapse. The Report is now being considered by the Government.
The State Government continues to work with key stakeholders (by way of the Home Indemnity Insurance Forum) to examine the various issues confronting all sections of the home building industry in this regard. That Forum has recently provided me with their report containing recommendations to address the long term issues confronting the industry following the HIH collapse. The Report is now being considered by the Government.
The State Government continues to work with key stakeholders (by way of the Home Indemnity Insurance Forum) to examine the various issues confronting all sections of the home building industry in this regard. That Forum has recently provided me with their report containing recommendations to address the long term issues confronting the industry following the HIH collapse. The Report is now being considered by the Government.
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