Insurance boss quizzed at floods inquiry

The boss of an embattled insurance company has been questioned at Queensland's floods inquiry about his decision to get personally involved in a claim.

CGU and several other insurers have been heavily criticised for failing to pay the claims of policy holders whose homes were affected when more than 70 per cent of Queensland flooded last summer.

Appearing before the Queensland Floods Commission of Inquiry on Thursday,CGU CEO Peter Harmer was asked why he took the unusual step of dealing personally with a dissatisfied client.

Mr Harmer told the inquiry he wanted to get a firsthand understanding of a customer's grievances.

Sally Doyle,whose investment property in the inner Brisbane suburb of West End was extensively damaged during the January floods,led a rally outside CGU's South Brisbane office on February 18 because she was dissatisfied with the company's handling of her claim.

Ms Doyle,who gave evidence to the inquiry on Wednesday,said she and CGU could not agree whether it was riverine flooding or stormwater backflow that caused the damage to her home.

Ms Doyle told the inquiry she was left demoralised by"draining and tortuous"telephone calls in her dealings with CGU.

Mr Harmer visited Ms Doyle's property on February 14 to inspect the damage himself.

In a statement tendered to the inquiry,Mr Harmer said he listened to Ms Doyle's concerns but explained that most clients were aware that CGU's home insurance policies did not cover flood.

"In the absence of the necessary flood mapping data,we were unable to price the risk and as such were unable to issue coverage for flood,"he said.