Nationalise the insurance industry!

BY ANDY GIANNIOTIS

HOBART — On July 2, the Tasmanian branches of the Socialist Alliance called for the nationalisation of the insurance industry to solve the insurance crisis.

The announcement was a response to the July 1 suspension of clinical and education services by Family Planning Tasmania. FPT was unable to renew its insurance policy, which ran out June 30.

Socialist Alliance spokesperson Kamala Emanuel said that the campaign for the nationalisation of the industry was one of the party's priority pledges. Emanuel works as a doctor at FPT and is a Socialist Alliance candidate for the seat of Bass in the July 20 Tasmanian election.

Emanuel told Green Left Weekly that the suspension of clinical services by FPT "shows yet again that the profit-driven insurance industry is unable to solve the insurance crisis. As a consequence of premium hikes and the collapse of the medical defence organisation United Medical Protection, a range of health services across Tasmania and Australia are under threat. Family planning services are just the latest victims of the crisis; independent midwives and some of the state's doctors are among others."

"It isn't just a problem for those working in the health sector, but also for the community which relies on their services", Emanuel said. "It's not just the health sector; numerous community groups have been unable to find or afford insurance for activities that are part of everyday life. Sporting, cultural, political and other community organisations have all been affected."

Emanuel argues that a nationalised insurance industry would be able to offer insurance coverage at an affordable cost, because it wouldn't be run to maximise profits. She pointed out that state governments have operated insurance services in the past, but most have been privatised since the 1980s.

"The privately run insurance companies are using the excuse of the September 11 terrorist attacks in the US to jack up their premiums for public liability policies. They are refusing to insure all sorts of groups and activities. To obtain such insurance costs a packet", warned Emanuel.

"Our call for the nationalisation of the insurance industry is a call for public ownership of an industry that is holding society to ransom."

While the Socialist Alliance has called on the Tasmanian Labor government to nationalise all insurance operations in Tasmania, "the real solution to the crisis will require a national response", said Emanuel.

"Beyond that, we also need guaranteed income security and an expansion of free, high-quality public health care. When untoward events happen, people should be looked after regardless of fault. They shouldn't need to sue someone in order to get their needs met", concluded Emanuel.

From Green Left Weekly, July 10, 2002.

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From GLW issue 499