Queensland MP David Lee has questioned insurers’ handling of Ex-Tropical Cyclone Alfred floods after small businesses in his Hervey Bay ward said they faced “diminishing prospects” of having damage claims accepted.

The Liberal National state MP spoke out ahead of an Insurance Council of Australia meeting for policyholders in the area later this month.

“In all my engagements with flood-affected small business owners, they are expressing profound concerns about the diminishing prospect of success regarding their insurance claims,” Mr Lee told the opening of Queensland parliament yesterday. “Some insurance companies have been great, while others appear to be hastily disclaiming any liability for flood damage.”

Citing information from the state’s business disaster recovery scheme, he said insurance difficulties are among the main issues raised by owners trying to rebuild after Alfred swept ashore in March.

“Distraught business owners are being asked to complete hydrology reports, and they are reporting that insurance companies are either rejecting or substantially delaying their claims.

“I am advocating for insurance companies to do all they reasonably can to provide a timely resolution to insurance claims without hastily disclaiming liability to flood-affected businesses.”

He shared the experience of a butcher whose shop was damaged and has an estimated repair cost of at least $300,000.

“[The butcher] has had no income since [Alfred] and he is paying staff from his rapidly diminishing savings,” Mr Lee said. “[He] has been paying insurance premiums for nearly 20 years.”

ICA says insurers have received more than 100,000 claims totalling almost $1 billion from Alfred, which pounded Queensland and north NSW with floods and heavy rain.

Hervey Bay was among the worst-affected areas, ICA said when declaring the event a catastrophe.

ICA will hold the meeting with insurance customers in Hervey Bay on May 15.

Its director of mitigation and extreme weather response Liam Walter said: “While the Insurance Council and its members had presence in Hervey Bay immediately following this weather event and provided support and advice for impacted community members, it’s important for insurers to visit the region to work through any questions, issues or concerns.

“We expect assessments activities and scope of work discussions are well under way at this point in the claim process, but hope these additional forums will provide further support for the Hervey Bay community as they continue their recovery.”

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