HIH Support Scheme

The Minister for Revenue and Assistant Treasurer, Senator Helen Coonan, today released a progress update on the Government's $640 million HIH Support Scheme.

"Over $42 million in assistance has been paid out to HIH policy holders since the scheme commenced in June 2001," Senator Coonan said.

"Without the Federal Government's assistance scheme, these HIH policyholders might have been waiting years to have their claims paid out by HIH's liquidator. Instead, they have certainty, peace of mind and much needed assistance."'

The majority of applications for assistance that have been received for household building and contents, personal motor vehicles, property and commercial lines, have been processed and paid. These classes of insurance do not generally involve litigation and can be paid out in a short period of time.

All eligible salary continuance claimants are routinely receiving payments and these people have been fully restored to the position that they were in prior to the failure of HIH last year.

Liability classes of insurance, which include public and product liability and professional indemnity, usually involve litigation and can take some years to emerge and resolve. These claims are being managed and paid and payments will continue over future years.

A break down of the types of applications for assistance that have been received is set out below.

Over 7,600 applications for assistance have been received. 1,500 claims have been paid out and 5,630 are currently under consideration by claims managers.

The Government's support package was announced following the exit of the HIH Group of companies, to provide assistance to policyholders facing financial hardship.

Other information about the Scheme including how to apply and eligibility conditions, can be obtained from HIH Claims Support Ltd's website www.hihsupport.com.au, or toll free 1800 055 544.