The Insurance Council of New Zealand (ICNZ) has raised concerns regarding a Parliamentary Bill that proposes to establish a Tribunal for claims relating to the 2010-2011 Canterbury Earthquakes, as total insured losses for the event are now projected to creep up to AUD $22.3 billion (USD $16.4 billion).
While the vast majority of insurance claims from the Canterbury Earthquakes have now been settled, the ICNZ said that it is still receiving claims every day, and the tribunal will aim to accelerate the resolution of these remaining claims.
The Council estimated that 168,726 claims relating to the Canterbury Earthquakes have been paid as of 30 June 2018, worth a total of $20.98 billion.
“The people of Canterbury have been waiting too long to get their lives back on track after the 2010-2011 earthquakes. This tribunal will hopefully be a meaningful step in getting them there,” said ICNZ Chief Executive, Tim Grafton.
However, he also expressed disappointment with several aspects of the tribunal, including its 2019 launch date, which he noted would be almost 18 months after the Government was elected.
“It will have been nearly 9 years since the first quakes, far too long by anyone’s measure to be finally trying to sort this out,” said Grafton. “Insurers want to settle their customers’ claims as quickly as possible but we’re still receiving, on average, two claims a day from EQC (Earthquake Commission).”
Secondly, the ICNZ criticised the fact that the tribunal will only allow policy-holders to bring cases forward and not insurers, which it said only deals with only one half of the problem and creates inequity of access to justice.
“Some Cantabrians appear stuck, unable to make decisions and move their claims forward due to the enormity of the changes the earthquakes have wrought on their lives,” continued Grafton. “A tribunal that allowed both sides to bring claims would be fair and balanced and truly working towards the goal of helping everyone find resolutions and move forward from the quakes.”
Furthermore, the Council said that the Government had failed to engage key stakeholders on the issue, noting that neither private insurers nor the EQC and Southern Response Government agencies were consulted before the Bill’s introduction.
Grafton added: “We are keen to be certain that the tribunal will respect the rules of natural justice and fair procedure, the need to apply the rules of evidence, to be bound by precedent, and the ability to appeal significant points of law. Any Bill that does not respect these legal principles will not be supported by the insurance sector.”
