Victorian Bushfires

The ongoing February 2009 bushfires in Victoria has left many homes damaged or completely destroyed and tragically taken many lives. As people try to come to terms with their loss and start rebuilding their lives, they may need legal assistance with a variety of issues. For this purpose the Bushfire Legal Line on 1800 113 432 has been established to deal with any legal enquiry by communities affected by the fires.

During this time, we encourage those affected by the bushfires to consider the following:

1. Whether you have car insurance, home building and/or contents insurance.

If you do, contact your insurance company to:

i. Register a claim as soon as possible. It does not matter that your policy documents have been burnt/lost as your insurer can easily verify any cover you have with them. If you do not know the name of your insurer you can ask for assistance from the Insurance Council of Australia on 1300 728 228. For general information on how to make a claim please see our factsheets Making a claim on car insurance and Making a claim on home and contents insurance .

ii. Find out whether you are entitled to emergency accommodation under your policy and for how long.

iii. When you feel up to it, start thinking about gathering evidence of your loss. This could be anything from working on a list of contents lost, to taking photos once the area is safe to return to.

The General Insurance Code of Practice also obliges your insurer to fast-track your claim if you are in urgent financial need (Clause 3.7a), and to make an advance payment if appropriate (Clause 3.7b). Remember that any advance payment will be deducted from the total value of your claim.

2. Life Insurance - Given the devastating nature of the bushfires, many lives have been lost, and other people have been seriously injured. Families of those who have suffered such a loss may wish to look into whether their loved ones had life insurance policies in place. Many superannuation funds provide some level of life insurance cover for their members even if they are no longer employed. Claims can also be made for permanent disability. Contact the relevant insurance company, superannuation fund or Insurance Council Hotline on 1300 728 228 for more information.

3. If you have a question about claiming on your insurance policy or you have a dispute with your insurance company further down the track, you can call the Insurance Law Service on 1300 663 464 or the Insurance Ombudsman on 1300 780 808. For advice over the telephone and for information about other local services call the Bushfire Legal Line on 1800 113 432.

4. If you are a tenant affected by the bushfires either from having your possessions burnt or your rental property damaged or destroyed, please contact Bushfire Legal Line on 1800 113 432 or the Tenants Union of Victoria on (03) 9416 2577 for tenancy advice.

5. Do you have a mortgage or other loans? If you are paying off your home, you will be legally obliged to meet your mortgage repayments, even if your home has been destroyed or damaged by fire. Not paying your loan pending the outcome of an insurance claim will result in additional interest and enforcement fees being added to your loan and may result in legal action. You should contact your lender immediately to ask for hardship assistance. Some lenders have already announced special measures being taken to assist customers affected by the fires including relief from repayments and other forms of assistance.

The insurer is also obliged to notify your financial institution about the claim (for example, where there is a mortgage over your home) under the General Insurance Code of Practice, but you must let the insurer know about the financial institution’s interest.

If you have other loans you cannot pay as a result of hardship you should also contact your lender. You may have a legal right to a hardship variation on your loan, or your lender could be obliged to work with you under an industry code of practice. However, special relief offered by some institutions may be more beneficial and you should explore that avenue first.

For general information on hardship variations please see Factsheet:Hardship variations on consumer loans and Sample Letter: Request for Hardship Variation .

If you cannot pay your loan and you cannot reach an agreement with your lender contact the Bushfire Legal Line on 1800 113 432.

Contact other relevant organisations:

Victorian Bushfire Info Line on 1800 240 667.

Victorian Department of Human Services on 1300 650 172 or by visiting their bushfire assistance webpage at www.dhs.vic.gov.au/emergency/current-events/bushfire for information on financial assistance, coping with stress, health information and locating relief or recovery centres.

Red Cross Information Line for relief centres and assistance locating missing persons on 1800 727 077.

Insurance Council of Australia on 1300 728 228. The ICA has recently released a media alert which can be accessed at www.insurancecouncil.com.au/Default.aspx ?tabid=1662

The Bushfire Legal Line is a collaborative project set up by Victoria Legal Aid, the Federation of Community Legal Centres, the Law Institute of Victoria, the Victoria Law Foundation and the Public Interest Law Clearing House.