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Home / New Zealand

Action to sort out Canterbury's post-quake insurance and EQC "mess"

Kurt Bayer
By Kurt Bayer
South Island Head of News·NZ Herald·
17 May, 2018 02:19 AM2 mins to read

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Minister Responsible for the Earthquake Commission Megan Woods has announced a probe into EQC.

Minister Responsible for the Earthquake Commission Megan Woods has announced a probe into EQC.

A Government-funded public inquiry will probe the performance of EQC following the 2010 and 2011 Canterbury earthquakes.

The move was announced during Budget 2018 today by Minister Responsible for the Earthquake Commission Megan Woods.

"It's important we get to the bottom of what went wrong, so that we are better prepared for future disasters. We owe it to the people of Canterbury, who have been through so much, to ensure their voices are heard," she said.

"We also need to look at what was done well, and what has worked better in the Kaikōura earthquake sequence.

"This independent inquiry will have the power to compel evidence, hold public hearings and ensure all the information we need is put on the table.

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"The inquiry will usefully inform legislative changes to the Earthquake Commission Act 1993 and to EQC, and a planned review of insurance contract law."

The final terms of reference and membership of the inquiry will be announced shortly, Woods said.

A special independent insurance tribunal will resolve outstanding EQC and insurance claims, it was also announced today.

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The tribunal, designed so people can "get on with their lives", will resolve unsettled residential insurance disputes arising from the Canterbury earthquakes of 2010 and 2011, says Minister for Courts Andrew Little.

"It will provide an active, individually case-managed resolution process for claimants and their insurers, as well as mediation services," he said.

"This is a vital part of helping people get their claims sorted. People have often been waiting for years and this is needed to break through the deadlock."

Woods says it will help people "look to the future with confidence and hope, instead of being trapped in limbo with their lives on hold because of a claim that keeps dragging on".

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Budget 2018 provides $6.5 million operating funds and $1.5m capital to establish the tribunal, while the inquiry gets operating funding of $800,000 in 2017/18 and $2.4m in 2018/19, as well as $100,000 of capital in 2017/18 to ensure this inquiry has the resources it needs.

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