ARC Justice’s acting strategy and impact manager Kate Clohesy said her organisation — which offers free legal advice — had concerns about the number of queries they had received in regard to Rochester people who had accepted cash settlements.
For several weeks after the flood event ARC Justice offered advice from the 4Rs building on Diggora Rd and remains available to Rochester people concerned about a variety of issues — not just insurance matters — relating to the flood recovery.
She has taken a lead in co-ordinating the ARC Justice flood response, Rochester being within the organisation’s catchment.
She said there was a concern, based on the number of people who had contacted the service that not enough questions were being asked about cash settlements.
“What concerns us is that we haven’t had the number of people we might expect to want to discuss whether the amount they received was fair,” Ms Clohesy said.
Cash settlements have different conditions attached to the normal claims process, often allowing insurance companies to “wash their hands’’, of the policy holder with a one-off payment.
Ms Clohesy said while there were conditions on cash settlements, some could be reviewed.
“We are interested in hearing from those people who have doubts and are worried in hindsight. Those people who have made a decision to move the process forward and, on reflection, are questioning what they have received,” she said.
Ms Clohesy said it did not hurt to ask questions.
She said she had no doubt there were people who have taken cash settlements and were now wondering whether they have done the right thing.
“We are able to put their minds at ease, they may still have rights,” she said.
Ms Clohesy said the insurance industry was heavily regulated and there were built-in review processes available to policy holders in a range of circumstances.
“In some cases people will decided to take a cash settlement before (because) they have no (need) money and need to move on,” she said.
“When people go through an experience like this they are often pushing through a lot of things to get on with their lives.
“We often act in a similar fashion to a GP (General Practitioner) where we will be able to provide assistance or if necessary, direct people to a specialist (in certain types of legal matters).”
She said in some cases it would be important for people to have an expert reassure them that they had done the right thing.
“The other thing that is starting to come through is concerns about the scope of works,” she said.
“That is worrying people. If they think the insurance company has made mistakes, and they aren’t getting anywhere dealing with them directly, they can bring their scope of works to us.”
