QUEENDLAND’s Volunteer Marine Rescue squadrons could be liable for $100,000 in excess insurance costs should another event like ex-Cyclone Debbie hit.
The ten-fold increase was passed down by their insurance company this month, triggering an SOS from VMR state treasurer Adrian Westerman.
Mr Westerman said the cost could deplete the organisations operational funds if two or more catastrophes struck in close succession and wanted the state government to provide indemnity.
“We don’t have spare cash and the excess would be coming out of funds for things like rescue boats,” he said.
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Mr Westerman said the excess also meant damage bills less than $100,000 from such events could not be claimed, further adding to VMR’s woes.
He said the group’s 25 squadrons were operated using money mostly raised by volunteers, making for a tight budget. “We have money for (dispatches) but not much beyond.”
Victoria Point VMR commodore Doug Mackenzie said $4000 raised from the base’s biggest annual fundraiser last month had gone towards paying building insurance, which had risen about 30 per cent.
Insurance Council of Australia spokesperson Campbell Fuller said unless VMR divulged their insurer, specific comments could not be made.
He said higher excess costs were usually a trade-off for lower premiums. “Cyclone excesses are usually negotiated,” he said.
“The rises may be due to the amount of claims made by VMR or if it is a high risk.”
He said claims totaling $1.56 billion had been lodged in Cyclone Debbie’s aftermath, making it Australia’s biggest disaster since Cyclone Tracey in 1974.