National disaster insurance scheme plan runs into opposition

Australian Households could be forced to raid their current accounts if they fail to take out comprehensive insurance should plans for a national disaster scheme fall by the wayside.

With thousands of Queensland residents still counting the cost of the floods that hit the state over recent weeks, consumer groups have joined a number of politicians in calling for the establishment of a national scheme geared towards protecting homes and businesses from the full impact of such natural disasters.

However, while such initiatives are already in place in the United States and New Zealand, opponents have argued that this would have a negative impact on the Australian insurance market, and ultimately on the national economy as a whole.

According to the Courier Mail, the chief executive of Suncorp, Patrick Snowball, is among those opposed to the scheme, with the industry chief arguing that government money should be used to improve water management facilities and flood mapping instead.

It is now estimated that it will cost around $5.8 billion to repair the flood damage to the Queensland infrastructure.
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