Insurers Kill Workers' Camp

Date: 06 August 2001

A trade union holiday camp has been forced to close because no insurer will cover it, sparking calls for the Carr Government to regulate the entire industry.

The Rail, Tram and Bus Union has stopped members using the 14 units at Jervis Bay after its insurer refused to provide cover - despite the union making just two claims totally $7,000 over the past 30 years. The insurer gave the RTBU no other reason than it was its business strategy.

But when the union went looking for an alternate insurer, they were continually knocked back - on the grounds that their original insurer had refused to insure them!

RTBU state secretary Nick Lewocki says the decision shows insurance companies are out of control.

"The matter has highlighted to the RTBU that the insurance industry is not governed by any regulations or guidelines that require them to provide a service to either business or private citizens," he says.

"If a major insurance company can dump a customer of 30 years what chance would an ordinary working family have against such action."

Lewocki says that while the insurance industry is happy to take millions underwriting NSW Government contracts and commercial property owned by superannuation funds, they are turning their backs on ordinary people.

"First it was the bastard banks, now it's the bastard insurers," he says.

The Labor Council is calling on the Carr Government to implement an immediate Code of practise requiring the industry to act in a fair and equitable manner.

"Only those insurance companies that sign a code should be eligible to insure government-owned property," Lewocki says.

And he says unions should also call on industry superannuation fund trustees to use only insurance companies who are committed to such a code for commercial property owned by industry superannuation funds.

"Only the trade union movement is capable of forcing these corporate mavericks to be accountable to force the industry to comply with appropriate regulations and guidelines that will assist families and workers in the protection of their property."

For further information

Contact:	Peter Lewis
Union:	Labor Council of NSW
WWW:	http://workers.labor.net.au/

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