The Minister for Financial Services and Regulation Joe Hockey, announced $124,000 would be paid today to a young Townsville family under the Government's response to the collapse of insurer HIH.
The Minister said the recipients, Andrew and Diane Graham, had lost their home in a fire late last year and had been on the verge of finalising their insurance claim with HIH insurance when the company was placed into provisional liquidation.
"The Graham's case had been brought to my attention by the local Liberal member for Herbert, Peter Lindsay, who has pushed hard for the Government to find a solution to people enduring hardship due to the collape of HIH," the Minister said.
"Peter Lindsay has been a vocal and persistent advocate for the people of Townsville who have suffered due to the HIH collapse."
The HIH Claims Support Scheme was established to help individuals and businesses facing financial hardship as a result of the HIH collapse.
"It's a compassionate response to a far-reaching financial collapse, which could have had untold impact on communities right throughout Australia.
"At the moment, HIH Claims Support Limited is processing around 30 eligibility applications a day and cheques are being paid for salary continuance and personal lines."
The Government had received around 2800 applications for eligibility to the scheme, with the bulk of those being in liability insurance.
"Liability and professional indemnity are two of the more complicated types of insurance, but they're the categories which will make or break a small business operator if they don't get some sort of financial support," the Minister said.
"Without the scheme, a lot of small businesses would be facing hefty payouts, and this scheme will help alleviate some of that financial burden."
The HIH Claims Support Scheme was announced in May this year and is open to policyholders of the HIH Group including: FAI General Insurance, HIH Underwriting and Insurance, HIH Casualty and General, CIC Insurance and World Marine and General Insurance.
The scheme is available to HIH (or certain subsidiaries) policyholders subject to eligibility criteria.
Individual applicants need to prove they are Australian citizens or permanent Australian residents and are subject to an income test. Business applicants need to show they had 50 or fewer full-time equivalent employees as at 21 May 2001. Non-profit organisations need to show they are Australian.
For more information on the scheme, contact 1800 055 544 or visit the website www.hihsupport.com.au.