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Eric Johnston
July 21, 2009 .
INSURERS have called for an overhaul of the fire services levy in the wake of this year's bushfires, arguing that all property owners rather than those just with home insurance should pay it.
The levy is used to finance fire services.
In a submission to the Victorian Bushfires Royal Commission, insurer CGU said the fire brigade funding model had failed to keep track with growth in demand for fire fighting services. The general insurer, which is owned by Insurance Australia Group, said a fire service, like police, was a "public good" and that funding arrangements should be transparent.
"Today, only insured people fund services that benefit the entire community," the submission said.
CGU said the Victorian Government should follow other states and introduce a property-based system to fund fire services. It argued this would provide substantial savings to policyholders and could encourage some to boost their level of insurance coverage.
2 comments:
CGU have a vested interest in compulsory insurance of all properties and if that is working in other states, we should encourage it. However, the general insurer also said:
... a fire service, like police, was a "public good" and that funding arrangements should be transparent.
If that is the case, there should be no fire levy - as there is no police levy.
Greg, I don't think CGU want compulsory insurance, they don't want to collect the fire levy for the Governemnt and why should they?
That is also the view of the insurance company we insure with, they just want to insure.
Most clients don't realize that their hight bill is not all insurance!
Regards
Mario Galteri
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