FLOOD victims whose homes are in twin towns which were devastated by two major floods, are being abandoned by an insurance company.

Insurance firm Norwich Union has announced it will not provide insurance cover against flooding for householders in Malton and Norton, in North Yorkshire, after properties flooded in March 1999, and again in November last year.

The firm's decision makes the situation for residents even worse, as the start of the flood season is imminent, yet work to build the £4.1m flood defences approved in the wake of last year's devastation is still not under way.

Local MP John Greenway has criticised the move by Norwich Union and is seeking a meeting to try and reverse the decision, and the Derwent Action Group, set up to fight for compensation for the flood victims, has described the company's actions as appalling.

The secretary of the action group, Di Keal, whose home was flooded twice, said: "It is appalling that a big reputable company is abandoning its customers like this."

Last year, 1,600 homes across the North-East and North Yorkshire were hit by flooding, and £242m was paid out nationally by insurance firms in domestic flood claims.

Norwich Union said it paid out more than 100,000 flood claims last year and described flooding as "inevitable" this year.

A spokesman said: "Insurance is there for unforeseen risk. Because such places as Malton and Norton have been flooded on a habitual basis it is known that the area will flood again. That is why we can no longer pick up the flood risk for the area."

Local councillor Stephen Shaw said: "They're getting cold feet, simply because of two incidents in two years, they're forgetting the 40-odd years before that without flooding. This makes it all the more important that the flood defences get under way.

" It is appalling, insurance is all about spreading the risk and the premiums should reflect the risk, they shouldn't be walking away from a problem, they're in the business of taking risks. I just hope this is not applied by all insurance companies, because that would be bad news."