Cars hit hard in Vic storms: insurers

At least half of the damage sustained in the ferocious Christmas Day storms that hit Melbourne and northwest Victoria was to vehicles, the Insurance Council of Australia says.

Within days of the wild weather that brought huge hailstones and flash floods to the state, about 5000 claims had already been lodged with insurance companies, with thousands more expected as people return from holidays.

Insurance Council of Australia CEO Rob Whelan says those lodging claims are unlikely to experience the same sort of controversy flood victims in Victoria and Queensland did early this year, when some received insurance payouts while their neighbours did not, depending on the way their insurers defined flood.

“This particular storm is really about flash flooding and hail damage. The vast majority of claims are around flash flooding and hail damage, and all policies cover that,” Mr Whelan said.

He believed 50 per cent of insurance policies would cover flooding damage to houses near rivers.

“And progressively companies are rolling out cover for that type of flooding throughout 2012,” he added.

Responding to criticism from insurance holders expressing anger over delays to calls for help, Mr Whelan blamed a shortage of staff working on Christmas Day.

He said insurance companies were busy bringing people back from leave to cope with the inundation of calls, and urged people making claims to be more patient.

By Tuesday about 4000 people had called the State Emergency Service requesting help in the wake of the storms.

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