In case you missed it, the Natural Hazards Insurance Bill has landed. It’s in its first reading now so has a way to go before actually becoming law.
The Bill is intended to replace the Earthquake Commission Act 1993 and its claims system for natural disaster insurance. For those many of you who were affected by the Canterbury earthquakes of 2010 and 2011, you will remember EQC all too well.
The new proposed law incorporates lessons learned by EQC in the earthquakes and recommendations from the Public Inquiry into how EQC should function.
Already we can see one obvious change here with the Bill’s title. That reflects the scope of its role as beyond just earthquake claim cover. EQC will be renamed Toka tū Ake – Natural Hazards Commission. Toka tū Ake translates as ‘the foundation from which we stand strong together’.
The Bill aims to clear up the rules for mixed and multi-use buildings, clarify regulations on repairing buildings and land following a landslip or other land damage, simplify excesses and calculations for retaining walls, bridges and culverts, and introduce a claimant code and a standing dispute resolution service.
These changes, amongst the others, come under the three overarching objectives:
1. To enable better community recovery from natural hazards.
2. To clarify the role of the Commission and the cover provided by the Bill.
3. To help make natural damage laws more responsive.
We welcome this change, as here at Corcoran French we still, 11 years on, sadly encounter significant challenges for our clients from the Canterbury earthquakes. These include the long running saga of the Southern Response class action. If you cash settled with Southern Response before 1 October 2014, you may be eligible to a further payment package with up to $2,000 paid towards your legal advice. Our litigation team can help with those claims.
For further information about the new laws, the Southern Response package or insurance laws generally, contact Mia Barnett.