May 9, 2019 12:30
Photo : Unsplash
The premier of Quebec, François Legault has sent a clear message to insurance companies for damage in the beginning of the week : assume your part !
Mr. Legault said that have information according to which insurers would attempt to pass the bill for sewer back-ups to the programs of emergency financial assistance put in place by the department of public Safety.
On Tuesday, the prime minister stated that there would be reminders to insurers in some well-defined cases. Mr. Legault has also specified that, according to him, the sewer backups are eligible for a compensation by the insurers.
Regular Communication with the government
Contacted by the Journal of insurance, Pierre Babinsky, director of communications and public affairs at the insurance Bureau of Canada (IBC), said that his organization was in regular communication with the government of Quebec in order to ensure that the connection between the financial assistance program and private insurance is effectively for the citizens affected.
“It is important to remember that in order to be covered for flooding or sewer back-up, the insured must have taken out the appropriate rider. The exchanges with the government have an opportunity to recall that the insurers will indemnify their customers as a result of a sewer back-up or compensation if they have actually agreed to the amendments necessary, ” said Mr. Babinsky in the Journal of the insurance.
It also points out that insurers and the department of public Safety use the same criteria to distinguish a sewer back-up flood. “Also, any citizen to be the victim of a flood can make a request for financial assistance to the government, that it is insured for this risk or not, unless its coverage private insurance does not cover the full cost of the damages, said Mr. Babinsky.
The losses will exceed$ 100 Million
Moreover, in a bulletin issued this morning, Aon has revised upwards its forecasts as to the damage caused by the floods in the east of Canada. Two weeks ago, the company estimated that the economic losses would be in the tens of millions of dollars.
Aon the is increasing and indicates that they will be in the hundreds of millions of dollars.
The firm also notes that since the penetration rate of insurance cover against flooding is low, insured losses will be lower.