Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Kaikoura – A Year On, A Sad Indictment on Insurers and EQC

7 November 2017
Kaikoura – A Year On, A Sad Indictment on Insurers and EQC


EQCfix concerned things are still not being done correctly in Kaikoura

EQC (via private insurers) is continuing to apply an incorrect part of the EQC Act in its assessment process of earthquake damage in Kaikoura.

The Insurance Council of NZ has today suggested the model being used in Kaikoura where insurers are acting as agents for the Earthquake Commission (EQC) and are managing most of the building and contents claims, is “the model for (sic) (the) future as it has proven to deliver efficiencies for everyone by reducing double handling and speeding up settlements”.
Christchurch accountant and advocate for insurance and EQC claimants, is sounding a word of caution, as the Government reviews the way claims are managed with the ICNZ advocating for insurers to continue to assess and manage all claims in future.

“There are some positives in this proposal but insurers certainly need to get their own houses in order before they start taking on EQC’s work. We are almost a year out from the anniversary of this event and only 65% of building claims have been settled. People are living in garages, some haven’t even seen an assessor yet; we don’t see that as something to be proud of,” he says.

Continuing to be of concern to claimants support group EQCfix, with whom Preston works, is that private insurers assessing damage in the seaside town have been advised by EQC to use a part of the EQC act that wrongly defines replacement, contrary to a joint agreement signed last April.

All claims related to the Kaikoura quake are being cash settled, and as such EQC agreed in a joint statement with a group of claimants last April that “replacement” in cash settlement situations means “as new”.

Cam Preston says EQC documents he has received under the Official Information Act clearly show EQC, via the private insurers, has been and continues to use section 9(1)(a) of Schedule 3 of the EQC Act which says "replacement" means “not exactly or completely but only as circumstances permit and in a reasonably sufficient manner”.

“That is not ‘as new’ and EQC agreed last April they would only use that part of the act when it was a ‘managed repair’ as it was under the Canterbury Home Repair Programme with Fletchers,” says Cam Preston who says this can significantly reduce the financial settlement someone receives. “The main concern of the group is that claimants are likely to be negotiating replacement of damaged property at a level that is significantly below the standard of replacement that they are entitled to, according to the Joint Agreement signed last April.”

EQCfix is concerned that ICNZ seems happy to the point of celebrating, that almost a year after the Kaikoura earthquake, only 65% of house claims are settled (and what does that actually mean?), while assessors continue to use the wrong interpretation of the EQC act.

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Fletcher Building: Norris Steps Down As Chair After New $486M Loss Provision

Ralph Norris will step down as chairman of Fletcher Building after the company took a further $486 million provision for project losses at its Building + Interiors unit and said 14 of the unit's 73 projects, worth $2.3 billion, are loss-making or 'on watch'. More>>

ALSO:

WWF: Concerns With Suggestion To “Scrap” Fishing Monitoring

“Our Pacific neighbours, like Fiji and the Solomon Islands, are making this work with far less economic resources than New Zealand. There’s no reason the government can’t get this done by October.” More>>

ALSO:

Greenpeace: Genesis’ Plan To Keep Coal Burning Until 2030 Stuns

Genesis Energy had previously promised to turn off its coal-fired units this year, however after a series of closed-door meetings with power companies including Meridian Energy, the deadline was extended. More>>

ALSO:

PM's Science Prizes: The Science That Saved Kiwifruit

Plant & Food Research is proud to be the recipient of this year’s Prime Minister’s Science Prize for its rapid response to the vine-killing kiwifruit disease Psa. More>>

ALSO:

NZ Government: Fund Encourages Lower-Emissions Technology

Businesses are being encouraged to adopt innovative technology that cuts greenhouse gas emissions in a funding round announced by Energy and Resources Minister Megan Woods today. More>>