Overview
- The Victorian Ombudsman found VMIA mishandled domestic building insurance claims, with delayed decisions and opaque processes that left some owners in severe hardship.
- Private staff messages denigrating claimants were revealed in the report; the government and VMIA issued apologies and implicated staff were counselled.
- The report made nine recommendations to improve claims handling, communication and transparency, which the new Building and Plumbing Commission and the Department of Transport and Planning accepted in principle.
- VMIA’s heavy reliance on external lawyers was found to be intimidating for claimants, with $22.8 million paid to four firms between 2022 and 2024.
- Porter Davis’s 2023 collapse left about 1,700 homes unfinished; roughly 560 clients lacked cover and were later targeted by a $15 million state rescue package, as DBI oversight shifted to the new commission.