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Charlton flood payments 'better than nothing'

Friday November 2, 2012 - 12:51 EDT

A lawyer for Charlton's flood victims says more local insurance claims have been settled after rulings from the Financial Services Ombudsman.

Residents have been locked in disputes with their insurers for nearly two years, after their homes were damaged by flooding last year.

Lawyer Michael Bates says so far the ombudsman has handed down decisions on 13 cases and all have been in favour of residents.

He says while some of the payouts have been less than hoped, it will help many residents to rebuild.

"In some cases, some people have received close enough to 70, 80, 90 thousand dollars but look, it's certainly not the type of money to enable people to rebuild a new home but it's certainly better than the position they were in, which was they had nothing other than a letter from the insurance company telling them they were lying," he said.

He says while there is still a significant number of cases yet to be heard, he hopes they will succeed.

"Now that the ombudsman has found that initially it was stormwater or local run-off that the reminder of cases will be successful and they'll be successful in varying degrees," he said.

"We've always said ... there will be some matters that won't be successful and there will be some cases where people won't get all that they want, but something is better than nothing."


- ABC

© ABC 2012

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