WILD weather in Queensland has triggered almost 6000 claims for RACQ Insurance, which argued yesterday it would have to take a tough line with flood claims so the insurer could remain in business.

Claims lifted from the 2000 indicated on Thursday and would increase, RACQI said.

The figures revealed the fast-rising scale of disaster.



The tally comes as it is thought RACQI, owned by the motoring body, is heavily buffered from single large catastrophes by its own "re-insurance'' protection triggering at $10 million.

The series of wild weather disasters ranging from pre-Christmas hail storms to the Toowoomba flash flood and last week's flooding in Brisbane has triggered hundreds of millions of dollars in claims for insurers.

The Insurance Council of Australia said flooding outside the southeast alone had chalked up $365 million in claims.

But flooding has sparked anger from people about policy wording, given victims might not be covered for water slowly rising out of a river as opposed to storm water quickly entering through the roof.

A RACQI spokesman said hydrologists were yet to determine how to classify the latest disasters.

Some politicians, including Treasurer Wayne Swan, have asked for "compassion'' from insurers, but not sought a blanket payout for victims outside of their insurance policy wording.

RACQI chief executive Bradley Heath said while his organisation "includes flash flood coverage in our standard household policies, RACQ Insurance has never offered flood cover as standard''.

"Unless policy holders have purchased the optional flood coverage, RACQ Insurance will not be able to pay flood claims,'' Mr Heath said.

"We have to ensure that we are here today, tomorrow and in the years ahead for all two million of our policy holders.''

Other insurers will face a similar dilemma about making extraordinary payouts. Neither Suncorp's AAMI brand, nor IAG's NRMA standard policies would cover a slow-river flood.

Insurers face a dilemma because their own "reinsurance'' protection may not cover any special payouts.

Insurers take their own protection via reinsurance companies to offer a buffer on an insurer's payout in a large-scale disaster.

But reinsurance industry sources have told The Courier-Mail they offer protection based on an insurer's policies with customers.

It is understood RACQI has its own reinsurance triggered at $10 million for a large catastrophe.

That is a far bigger buffer than the likes of Suncorp, which is triggered at $200 million or IAG, triggered at $150 million.