HIH policyholders have another six months to lodge an application with the HIH Claims Support Scheme, Minister for Revenue and Assistant Treasurer, Senator Helen Coonan announced today.
The HIH Claims Support Scheme, in operation for more than two years, has paid out nearly $245 million to policyholders or those acting on their behalf. The Scheme will close to new applications with effect from Friday 27 February 2004.
“For the majority of policyholders, the circumstances giving rise to a claim have been known for some time. In making this announcement now, policyholders are being given a further six months to lodge an application,” Senator Coonan said.
“The number of applications received by HIH Claims Support Limited has been steadily declining over recent times to the point where the existing structure is no longer warranted or cost-effective.”
Closure of the Scheme to new applications will not affect the management of existing claims nor the processing of applications already lodged with HIH Claims Support Limited. Claims will continue to be managed by an outsourced claims manager after the Scheme closes to new applications.
“Without the Government’s Scheme, HIH policyholders would have had to wait for the final wind-up of the HIH Group before receiving any payment and would likely have received substantially less than what is being provided under the Scheme,” Senator Coonan said.
Once the Scheme is closed to new applications there will no longer be a need for the existing structure to continue. Accordingly, HIH Claims Support Limited will be wound out of the arrangements by 31 August 2004.
The Government will undertake a competitive tender process to consolidate any ongoing claims management.
“A facility will also be provided for policyholders to make a late application after the cut-off date where, through no fault of their own, they did not know, and could not reasonably have known, that they had a right to claim under a HIH policy,” Senator Coonan said.
“I would like to take this opportunity to thank the Insurance Council of Australia and the insurance industry, in particular, claims managers QBE, Allianz, Royal & Sun Alliance and the Insurance Australia Group, for their cooperation in setting up and managing the Scheme. Without this partnership, the Scheme could not have been so successful.”
A national advertising campaign will be one of the tools used to encourage HIH policyholders who believe they may be eligible for assistance to apply to the Scheme as soon as possible.
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 on 1800 055 544.