Quake-affected Australians angry as insurance claims rejected: 'We need help'

Muswellbrook Mayor Geoffrey Drayton is angry at local residents' insurance claims being rejected. (Source: Al Majlis/7 News)

Australians affected by a cluster of earthquakes in a NSW mining town are angry after their insurance claims were rejected. Residents in and around Muswellbrook have suffered from dozens of earthquakes and aftershocks since August 23, with the last measuring 4.2 on the Richter scale on Tuesday.

Many homes suffer from large cracks in roofs, walls, boards and bricks. But residents said they were struggling to get their claims approved by their insurance companies.

Amanda Wassell lives on the south side of the Upper Hunter town, and told Yahoo Finance she was angry when her provider explained why her claim was denied.

“The insurance company rejected our claim because it was considered a constituent motion,” she said.

“But we're still fighting this. We take care of our house, and we put a lot of time and effort into this place. It's not rundown.

“These companies need our help. We pay them to help when we need it, not when they choose to.”

Waseel is not alone in her battle against her insurance company.

The local council received hundreds of reports from residents who suffered damage to their properties from a series of earthquakes and aftershocks.

Nearly half of these people have submitted claims to their insurance companies, and only 9.5 percent have been approved so far.

51.5 percent of claims were rejected, and 39 percent of claims remained in limbo.

“The insurance company will not provide more information about where the claim is, and it has been more than a month,” one resident said.

Another added: “I haven't tried to claim because the earthquakes keep happening and everyone says their claims keep going down, so it seems like a waste of time.”

“We need help. Almost all insurance claims have been denied. This is financially devastating,” a third wrote.

“Despite this, my mental health has gone up dramatically. The moment I feel a tremor, I go into immediate panic thinking it will be another earthquake.”

The Insurance Council of Australia explained to Yahoo Finance that 340 claims have been filed so far, the majority of which (304) are personal claims and the remainder (26) are commercial claims.

Insurance companies sent engineers to the area to assess the damage.

“In many cases, the defects identified are cracks that exist due to natural ground movement and temperature changes over time that may not have been noticed before,” a company spokesperson said.

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Some examples of damage reported by residents. (Source: Facebook)

“Damages caused by natural ground motion, temperature changes and damage caused by seismic activity can be easily distinguished by expert engineers.”

But Wassell believes insurance companies don't look closely enough at the damage that is reported.

“I can't wait to show them more of the damage from the recent earthquake because the pictures will prove it was caused by the earthquake,” she told Yahoo Finance.

“[Insurers] “She entered our house and took many pictures of the ‘establishment movement,’ but we reported the additional damage immediately.”

The Council expects that the “majority” of claims will be “fully or partially accepted.”

Mayor Jeff Drayton said it's shocking to see how many insurance claims have been denied so far.

“The insurance companies’ response was a joke,” he said.

“They take too long to assess claims only to reject them, leaving people in limbo wondering what the point of insurance is.

“We need state and federal governments and insurance companies to come out and help the community.”

He hopes the New South Wales Reconstruction Authority will declare the series of earthquakes and aftershocks a natural disaster.

When this announcement is made, authority staff will be able to work with emergency services and community leaders to help the city recover.

But the clock is ticking, as the natural disaster must be declared within three months of the event and the deadline is November 23.

The Insurance Council explained to Yahoo Finance that there is another recourse for residents if their claims are denied.

“As with any claim, if a customer does not agree with their insurer’s decision, they can review the decision,” the spokesperson said.

“If they are not satisfied with the results of the internal dispute resolution, they can lodge a complaint with the Australian Financial Complaints Authority, which can make rulings binding on insurers.

“A disaster declaration does not change the contract with the insurer or the coverage set forth in the Product Disclosure Statement (PDS). Customers with questions or concerns should speak with their insurer.”

Vasil fears the situation will get worse.

“These are some of the largest earthquakes to hit the region,” she said.

“I've lived here for 10 years and, like in a lot of places in Australia, you hear noises from time to time, but these earthquakes over the last couple of months have really caused damage.

“I'm concerned about future earthquakes and the damage they will cause to existing earthquakes and the potential for new damage.”

The first earthquake that struck the region was last August, and the earthquake that occurred this week was the fourth.

The strength of the strongest force reached 4.7 on the Richter scale, and dozens of aftershocks were recorded.

The earthquake occurred this week near BHP's Mount Arthur mine site, which is located southwest of Muswellbrook.

Dr Hadi Qasimi, a geophysicist at the Australian Geosciences Authority, explained to the ABC: “There are some studies that suggest that seismic activity can be linked to mining activity, because any activity that you do can basically reduce the pressure system in the same area and could lead to… “Earthquakes.” .

“But at the same time, mines are naturally located near fault lines because that is where mineral deposits form.”

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