DESPITE calling the Senate Economics Committee Inquiry into the rort of Home Warranty Insurance a 'Kangaroo Court', Housing Industry Association Dr. Ron Silberberg will front that same hearing today.
Dr. Silberberg and a number of his senior employees will lobby Senators to retain the ‘joke’ insurance schemes.
Recently, Australian Property Journal reported that the Labor Party dominated inquiry into the Housing Industry and Vero Insurance controlled Builders Warranty Insurance is likely to find that the ‘Last Resort Insurance’ schemes should survive scrutiny despite being abandoned in
The ‘Last Resort’ insurance schemes, described as ‘worthless’ by consumer advocates reigns supreme in the Labor Party states of New South Wales and Victoria. The Victorian State Opposition has stated it would rid the building industry of the insurance scheme if it gained government.
The HIA has previously submitted to the Inquiry a number submissions dismissing opposition to the warranty schemes, from which it derives substantial commissions.
The Senate Inquiry has allowed the HIA to write a privileged – totally scurrilous and defamatory response – to the Builders Collective submission to the Inquiry without fear of court action.
Consumer advocacy Choice in its recommendation to the Inquiry stated:
“Australian Governments should take early action to provide better and uniform protection for those have a home built or renovated. Specifically, this should entail:
• Guaranteed access for consumers to alternative dispute resolution mechanisms
• Provision of greater scope to de-register builders who do not meet appropriate performance standards; and
• A revamping of compulsory builders’ warranty insurance to ensure that it is of genuine value to consumers and that consumers understand the product.”
In August 2004, Choice found warranty insurance basically junk insurance.
Choice in its submission to the Senate Inquiry reported that: “In August 2004 CHOICE Magazine investigated home warranty insurance. That investigation found that in most states mandatory insurance was unreasonably limited to circumstances where a builder dies, disappears or becomes insolvent. CHOICE also found that the privatisation of home warranty insurance coupled with changes to the insurance market had whittled away many consumer protection measures.”
The HIA in its privileged submission lambasted Choice declaring: “It appears that Choice Magazine is not interested in providing a fully informed (let alone a balanced) view on this issue”.
Opposition against warranty insurance has reached fever pitch with the Sydney Morning Herald and The Age campaigning against the warranty scheme.
In a recent article in The Age warranty insurance was described as a ‘joke’.
Australian Property Journal
