Making a claim following a natural disaster will become easier after the Natural Hazards Insurance Bill passed its third and final reading in Parliament today.
โThis Government is improving the Earthquake Commission scheme, so in future New Zealanders donโt have to go through the same traumatic experiences as the people of Canterbury,โ Minister Responsible for the Earthquake Commission (EQC) Dr Deborah Russell said.
โThis is also relevant in the wake of the recent floods in Auckland and wide-spread damage caused by Cyclone Gabrielle.โ
From July, the Natural Hazards Insurance Act 2003 (NHI Act) replaces and simplifies the current Earthquake Commission Act 1993 and incorporates a number of the recommendations from Dame Silvia Cartwrightโs 2020 Public Inquiry into the EQC.
โThe NHI Act makes the rules for mixed and multi-use buildings clearer, it clarifies law relating to repairing buildings and land following a landslip or other land damage, and simplifies the excesses and calculations for retaining walls, bridges and culverts.
โOur natural hazards insurance scheme supports us to have one of the world’s highest rates of residential property insurance. It is crucial New Zealanders can continue to get affordable insurance cover, and have their compensation paid as quickly as possible.
โInsurance is fundamental to helping communities recover after an event. Compensating policy owners for the damage caused by a natural hazard means they can repair their home and move on with their lives.โ
A claimant code and a standing dispute resolution service will also come into effect, so future claimants can access support in the immediate aftermath of a natural disaster.
โThe Natural Hazards Insurance Act recognises that EQCโs mandate extends further than just helping people recover from earthquakes. In fact, its insurance scheme also covers storm, floods, landslips, volcanoes, tsunami and hydrothermal activity.
โEQC will also transition to a new name – Toka Tลซ Ake โ Natural Hazards Commission. Toka Tลซ Ake translates as โthe foundation from which we stand strong togetherโ โ acknowledging the organisationโs role supporting New Zealand to both prepare for and recover from natural hazards.โ
Claimants will still lodge claims with their insurer to access entitlements via Toka tลซ Ake – Natural Hazards Commission following any event.
โThe NHI Act will commence from 1 July 2024. It will not affect entitlements of any current claims, or any claims made prior to then,โ Deborah Russell said.