Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Government raises homeowner insurance premiums

MEDIA RELEASE

26 May 2017

Government raises homeowner insurance premiums

Major increases in taxes and levies on people who insure their homes could see low income households not able to protect themselves from disasters the Insurance Council of New Zealand said today.

“By the end of this year households will see the levies and taxes on people who insure themselves sky rocket. From 1 July there will be a 40% increase in the levy used to fund the fire service which everyone benefits from, not just the insured” Insurance Council Chief Executive Tim Grafton said.

From 1 November there will be a 33% increase in the EQC levy applied to house insurance. And both these levies then have 15% GST applied to them.

This means people with house and contents insurance will be levied and taxed over $450 without even counting the 15% GST applied to the premium that the insurer charges.

New Zealand is one of the most vulnerable countries in the world to natural disasters for its size. Insurance is vital in providing protection for people as we have seen with the industry likely to pay $25 billion for the Canterbury and Kaikoura earthquakes.

Grafton said “This election year there is an opportunity for political leadership to be shown. Does New Zealand continue to go down the path of making it increasingly difficult for low income people to protect themselves or should we really be addressing our vulnerability?”

“If fewer people insure that will not only put upward pressure on the cost of insurance and so create a downward spiral, but it will also create a moral hazard for the Government. Does it help the uninsured and thereby encourage greater levels of non-insurance and under-insurance?” he said.



“General taxation should fund the Fire Service which benefits everyone, insured and un-insured alike. The Crown balance sheet is now strong and can bear the $1.75 billion exposure that the EQC levy seeks to fund.

“Crown risks to the likes of foot and mouth disease and pandemics are not specifically funded. The challenge to future governments is to think how we can keep people protected from natural disasters. All the evidence points to insurance as critical to economic and social recovery post-disaster.

Research commissioned by ICNZ shows only 25% of New Zealanders agree that New Zealand is well prepared to minimise the economic and social costs of natural disasters.


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

SCOOP COVERAGE: CHRISTCHURCH MOSQUES TERROR ATTACK


Child 'Uplifts': Children’s Commissioner To Conduct Review

The Children’s Commissioner has announced that his Office will be carrying out a thematic review of Oranga Tamariki’s policies, processes and practice relating to care and protection issues for tamariki Māori aged 0-3 months.

“At the time of the attempted uplift from Hawke’s Bay Maternity Hospital at the beginning of May, our Office shared our views on the critical importance of the mother-child relationship, and the fact that this relationship is denied to too many Māori children”, says the Children’s Commissioner, Judge Andrew Becroft. More>>

 

Fluro Logo, Definitely Not Racism, Activist Judges: Act Has Conference

“Finally, New Zealanders will have the right to challenge bad laws in court. If the courts find that a law hasn’t been made in accordance with the basic principles of good lawmaking, it can be declared invalid." More>>

ALSO:

Money Found: Revised Offer For Teachers And Principals

PPTA and NZEI have recommended that revised offers from the Government to their members are ratified, Education Minister Chris Hipkins has announced. More>>

ALSO:

Discussion Doc: National's Primary Sector Plans

Today National has released our third discussion document, this one on the primary sector. It showcases our positive and innovative approach to what is the backbone of our economy, Leader of the National Party Simon Bridges says. More>>

ALSO:

Gordon Campbell: On The War Purposes Of Our Massive Defence Spend-Up

If you’re willing to believe Defence Minister Ron Mark, our defence forces will be operating in future like a high-tech version of Oxfam. Yes, we’re going to be spending $20 billion on Defence in the years out until 2030, but allegedly… “Much of the spend has been driven by climate change.” More>>

ALSO:

AND:

Govt Adopts Working Group Plan: Unions Welcome Film Industry Collective Bargaining

The announcement today by the Minister for Workplace Relations and Safety Iain Lees-Galloway, to support collective bargaining for those working in the film and screen industry, is welcomed. More>>

ALSO:

Greenpeace: New Oil Rig Arrives

A drill rig commissioned by oil giant OMV has arrived in New Zealand, a little over a year after the Government issued a ban on new oil and gas exploration permits... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels