Source: New Zealand Government
Associate Finance Minister David Seymour is glad to see the Natural Hazards Insurance Act come into force today, further protecting homeowners’ rights after a natural hazard event and seeing the Earthquake Commission (EQC) become the Natural Hazards Commission.
“The Government is committed to ensuring Kiwis continue to get reliable insurance cover and claims paid efficiently, so they can recover and move on with their lives in natural disasters,” says David Seymour.
“Unfortunately, Kiwis have suffered through their fair share of adverse events in recent years. Our resilience shines through in these situations, but it is also an opportunity for the Government to learn and improve processes.
“These changes have been informed by events like the Christchurch earthquake and recommendations from the Public Inquiry into EQC, as well as feedback provided from the experience of claimants.
Specifically, the Act:
- makes the rules for mixed-use buildings clearer and simplifies the excesses for claims and calculations for retaining walls, bridges and culverts
- introduces a number of procedures intended to improve the homeowner experience, including a Code of Insured Persons’ Rights and access to an independent dispute resolution service
- clarifies and strengthens the Natural Hazards Commission’s role in supporting more resilient communities through having a greater role in sharing information, knowledge and expertise on natural hazard risk management
- turns the EQC into the Natural Hazards Commission, reflecting a recommendation from the 2020 Public Inquiry into the Earthquake Commission that the Act and name should signify the full range of natural hazards covered.
“I have also issued the first Funding and Risk Management Statement (FRMS) for the Natural Hazards Commission. The FMRS sets out how financial settings and levy settings are determined, and how the cost of claims will be shared between the Natural Hazard Fund and the Crown.
“In order to effectively manage and fund claims arising from natural hazards I have asked the Treasury to undertake a review of the financial settings and levy settings.
“The review will consider the current and possible future financial position of the fund and the overall financial position of the Crown. It will prioritise ensuring Kiwis have accessible and affordable catastrophe insurance.
“Decisions on any future changes to the levy will depend on the outcome of the review. The current levy remains in place and is backed by a statutory government funding guarantee so Kiwis have certainty their successful claims will pay out.
“This Government is committed to helping New Zealanders withstand the impacts of natural hazards so that we can stand strong together.”
