Insurers have been put on notice to pay out genuine claims by Queenslanders left reeling from Tropical Cyclone Jasper.
Federal Emergency Management Minister Murray Watt said some insurers were misinforming people that issues with a national scheme could prevent them from paying up.
Insurers signed up to the national $10 billion plan known as the reinsurance pool, which was created by the former coalition government in 2022 to keep premiums down after natural disasters.
But insurers say to be covered under the pool, a cyclone event must last no longer than 48 hours once it is declared by the Bureau of Meteorology.
That 48-hour deadline for Jasper expired on Friday, well before record rainfall and flooding devastated the far north.
Mr Watt said there had been insurers trying to create the impression that because of issues with the pool, people wouldn't be able to claim their insurance.
"That is absolutely untrue. It is absolutely unhelpful and it is disgusting for insurers to try and pass the buck away from their responsibilities to pay people their insurance premiums," he told reporters.
"Whatever issues there might be with the cyclone reinsurance pool ... it has nothing to do with the requirement of insurers to pay up on insurance policies.
"They have a legal obligation to do so. They have a moral obligation to do so."
Mr Watt said the pool, considered an insurance for insurers, would be looked at to see what changes may be needed.
More than 3800 insurance claims have already been lodged by flood-hit Queenslanders.
"The reinsurance pool is a contract between the government and insurers," Queensland senator Nita Green said.
"It's not a contract between consumers and insurers - I want to make that really clear.
"Insurers should not be trying to find an excuse ... to not pay out on genuine claims by people in north Queensland."
Ms Green urged insurers to "come to the party" in the wake of Jasper.
"They need to be on the ground ....meeting with people face to face," she said.
"They need to provide as much support to their customers as possible.
"We put them on notice today that they must do what this community expects of them and that is pay out the claims that are genuine."
The Insurance Council of Australia urged customers not to be concerned about the pool, saying they would be prioritising claims for affected policyholders across the far north.
Declaring the event an "insurance catastrophe", the council said disaster response teams were on the ground to provide assistance.
"Insurers are here to help far north Queensland and stand ready to help impacted policyholders through this challenging time," chief operating officer Kylie Macfarlane said in a statement.
"The most important step policyholders can take right now is to contact their insurer and get the claims process underway.
"Customers should not be concerned about the reinsurance pool, it will not impact their ability to make a claim."
