Builders Collective Australia

The indemnity/warranty Insurance upheaval will hurt us all

Click on this ABC Stateline segment that was aired on Friday evening the 18th June: http://www.abc.net.au/news/video/2010/06/18/2931328.htm

Whether we like it or not QBE cannot service the nation with this so called consumer protection product that will continue to inflict brand damage to all associated with it including the Governments now that they are underwriting it in NSW and Victoria.

The warranty manager of QBE is the person that has withdrawn twice from giving evidence to the Victorian Upper House Inquiry at the last minute as he was scheduled to appear at 10am on Thursday 17th June 2010.

His conduct is showing contempt for the Parliament, the builders, consumers, and removes any integrity this insurance ever held if it ever held any.

In terms of the insurers gouging it is taking place across the nation and in the WA Stateline segment the figure of $14,000 was for a $1,050,000 home, in NSW try $80,000 for a home value of $1.4Mil, and in Vic $44,000 for a home value of $950,000 in Geelong.

It is unfortunate that greed gets in the way of basic common sense as this is a product both the nations builders and consumers don’t need nor want.

Governments have a duty of care to the wider community and their almost obsessive perseverance with this product that is unable to justify its being is testing the boundaries of common decency to a point where the various Governments conduct may be exposed legally and that’s a position many builders are now asking whether it should be tested as well as the restriction of trade and the gouging.

Clearly there are many smaller builders that may not survive this upheaval.