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Bushfire clean-up funding will boost insurance benefits: ICA

An $18 million bushfire debris removal initiative in WA will maximise insurance benefits for Perth Hills residents impacted by this month’s bushfires and has been welcomed today by the Insurance Council of Australia (ICA).

The fires burnt more than 10,000 hectares and destroyed 86 homes in the first week of February, with many more houses damaged. There have been more than 730 claims with an estimated loss value of more than $60 million.

The clean-up program, which is jointly funded by the Federal and WA governments, was announced today after consultation with insurance industry members. The funding covers the cost of debris removal and site clean-up.

ICA CEO Andrew Hall says the coordinated program is the first tangible step toward recovery and will speed clean-up of the area and prioritise community safety by securely transporting potentially hazardous material.

“A government-funded clean-up allows savings by insurers to be passed on to policyholders to maximise the funds available to them for rebuilding,” Mr Hall said.

Similar coordinated government-funded clean-up programs were successfully implemented after both the 2019-20 summer bushfires and 2009’s Black Saturday bushfires.

WA Minister for Emergency Services Francis Logan says assistance will be provided for all affected residential blocks.

"We are working with the Insurance Council of Australia and its members to ensure this clean-up program helps to maximise the insurance benefits for all those impacted,” Mr Logan said. "This will help us understand the recovery needs of affected communities and to undertake locally-led and community-driven activities which support the long-term recovery.”

The package will also assist a community outreach program aimed at improving access to financial support and counselling.