Media Release: The New Zealand Initiative welcomes changes to EQC Act
Changes announced by the Minister Responsible for the Earthquake Commission, Gerry Brownlee, will help ensure a better recovery from future earthquakes.
Minister Brownlee this week announced changes to the EQC Act that would make private insurers the first port of call for homeowners making claims after a disaster.
The Initiative’s Chief Economist Dr Eric Crampton says, “Too many homeowners, after the Christchurch earthquakes, struggled with a process they found to be fundamentally unfair. Many believed that EQC’s Scope of Works for repairs reflected government cost minimisation rather than the works necessary to reinstate the home within the terms of their private insurance contracts. And where EQC deemed the job to be less than the EQC cap, owners had little opportunity for recourse with their private insurer.”
“After the next disaster, claimants will be able to go to their private insurer in the first instance. The insurer and the claimant will find a suitable repair strategy, and the insurer will then go to EQC for coverage of the first $150,000 in cost. When your home is shattered and your life is upended, the last thing you need is the added stress of being bounced around between EQC and your insurer.”
“Further, insurers that are part of international groups have access to experienced claims adjusters that can assist in any large-scale event. EQC relied on retired police investigators, accompanied by a builder.”
The Initiative will be releasing a report on policy changes for earthquake readiness later in the year.
ENDS
Dr Eric Crampton is available for comment. To arrange an interview, please contact:
Media contact
Simone White, Communications Officer
The New Zealand Initiative
Phone: +64 4 494 9109
Mobile: +64 21 2937 250
Email: simone.white@nzinitiative.org.nz