Insurance rules updated in response to recent natural hazards
The Natural Hazards Insurance Act has come into effect, as of 1 July, and is intended to provide additional protections for homeowners after a natural hazard.
The new act makes the rules for mixed-use buildings clearer and simplifies the excesses for claims and calculations for retaining walls, bridges and culverts, according to Associate Finance Minister David Seymour
It also introduces procedures intended to help homeowners, including a Code of Insured Persons’ Rights and access to an independent dispute resolution service.
The act also turns the Earthquake Commission (EQC) into the Natural Hazards Commission, to signify the full range of natural hazards covered. Furthermore, it strengthens the Natural Hazards Commission’s role in supporting more resilient communities through having a greater role in sharing information and expertise on natural hazard risk management.
Mr Seymour said the Government wanted to ensure New Zealanders would receive reliable insurance cover and have their claims paid efficiently, so they could recover from natural hazards.
“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,” he said.
Government orders review into natural hazard fund
Meanwhile, Mr Seymour said that in order to effectively manage and fund claims arising from natural hazards, he'd 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,” he said.
“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.”