The previous Dutch government has rejected a plan for a national insurance against major flooding, leaving many homes and businesses on the banks of the big rivers uninsured, Nu.nl reported at the weekend.

The plan was drawn up by insurers three years after the river Meuse burst its banks, causing wide-spread flooding in the province of Limburg. Since then, insurers and the government have continued to haggle over insurance.

In letter to the senate, former ministers Dilan Yesilgöz (justice), Mark Harbers (economic affairs) and Steven van Weyenberg (finance) said that the estimated €6 billion to €8 billion which the insurance premiums would raise may not be enough to cover a major disaster.

This, in turn, would mean the government would still have to free up additional funds, the former ministers said.

Properties and businesses directly affected by flooding resulting from the Dutch big rivers Meuse (Maas), Waal and IJssel are considered impossible to insure because premiums would be too high, and payouts in case of a large-scale flooding would bankrupt insurers.

People and businesses can currently turn to a government disaster fund but Limburg payouts have been both slow and unclear. The government said the insurers could play a role in streamlining the procedure.