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Budget 2018 includes funding to establish an independent insurance tribunal that will look to resolve unsettled residential insurance disputes arising from the Canterbury earthquakes of 2010 and 2011, said Megan Woods, minister responsible for the EQC.
“It will provide an active, individually case-managed resolution process for claimants and their insurers, as well as mediation services,” Minister for Courts Andrew Little said. “This is a vital part of helping people get their claims sorted. People have often been waiting for years and this is needed to break through the deadlock.”
Woods said Budget 2018 provides $6.5 million operating funds and $1.5 million capital to establish the tribunal.
“The tribunal will help people look to the future with confidence and hope, instead of being trapped in limbo with their lives on hold because of a claim that keeps dragging on,” she said.
Moreover, Woods said the government is also funding a public inquiry into the performance of EQC during these earthquakes. Budget 2018 provides the inquiry with operating funding of $800,000 in 2017/18 and $2.4 million in 2018/19, as well as $100,000 of capital in 2017/18.
“It’s important we get to the bottom of what went wrong, so that we are better prepared for future disasters,” she said. “We owe it to the people of Canterbury, who have been through so much, to ensure their voices are heard. We also need to look at what was done well, and what has worked better in the Kaikōura earthquake sequence.”
Woods noted that the independent inquiry will have the power to compel evidence, hold public hearings and ensure all the information needed is put on the table. It will inform legislative changes to the EQC Act 1993 and to EQC, and a planned review of the insurance contract law.
“The final terms of reference and membership of the inquiry will be announced shortly,” she said.
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