Insurance scheme needed to provide for those who cannot get flood cover – Daly

Fine Gael Cork South West Deputy, Jim Daly, has called for an insurance scheme to be established for victims of flooding who are being refused cover due to repeated flooding.

The scheme which would be based on the national solidarity principle, along the lines of that which is used by Motor Insurers’ Bureau of Ireland (MIBI), which provides insurance for victims of uninsured drivers.

“A scheme, such as this would see an additional premium added to existing policies to cover premises that cannot get insurance to cover flood events. Similar systems such as the National Flood Insurance programme in the US and ‘The Cat Nat System’ in France are well established, providing flood insurance to premises that cannot get cover.

“In the US and France the Government has intervened to ensure that all underwriters are committed to a scheme to insure flood risk properties by imposing an additional premium on all policies to protect those who have been denied cover. The time has now come for the Irish Government to initiate a similar scheme here in Ireland.

“The MIBI was established by agreement with the Government and the underwriters of motor Insurance in 1955 in response to the rising number of accidents involving uninsured vehicles. I believe it is now time for the Government to introduce a similar scheme for properties that cannot get flood insurance.

“As a public representative for areas such as Bandon, Clonakilty and Skibbereen, which have all suffered more than their fair share of flooding, the Government must act to protect residents and businesses who are being refused flood insurance. There is a real threat to the future viability of these towns if the recent flooding events are to be repeated. In the event of another flood, hundreds of families and businesses, who have no insurance cover, are in real danger of facing financial ruin.

“The proposal, if supported by Government, would mean an additional cost to all existing policy holders to cover the increased risk to premises in flood prone areas. I believe that the national solidarity principle would be accepted by people in order to protect the homes and
livelihoods of everyone in the State.”