The Earthquake Commission (EQC), a government entity in New Zealand, has undergone significant changes recently. The EQC has been renamed as the Natural Hazards Commission Toka Tū Ake. This transformation is not just about a name change, but it also reflects a shift in the commission’s role and responsibilities.
Why the Change?
The EQC was established to provide insurance cover for damage caused by earthquakes. However, the Canterbury earthquakes highlighted some challenges in the EQC’s claims handling process. The process was found to be stressful, frustrating, and time-consuming for claimants. In response to these issues, the government decided to overhaul the legislation.
What’s New?
The Natural Hazards Commission Toka TÅ« Ake now covers a range of natural hazards, including earthquakes, tsunamis, landslips, and floods. The new legislation aims to simplify the process for claimants and make it easier and faster for residential homeowners to make a claim if their properties are damaged by a specified natural hazard.
The government’s natural hazards insurance scheme, which has been in place for nearly 80 years, provides baseline cover for damage to insured properties from a range of natural hazards1. The cover under the scheme remains largely the same under the new Act, with some changes to clarify cover and entitlements.
Key Changes
One of the key changes is the ease with which homeowners can make a claim. Previously, claimants had to go through the EQC process, which could take about a year, and then start the process again with their private insurer. Now, homeowners just need to call their private insurer, who will deal with all of it.
Claims on bridges, culverts, and retaining walls have also been simplified. The excess is now $500 each time, whereas previously the excess had been linked to the value of the asset. Homeowners also have increased cover for mixed-use buildings, such as apartments in commercial buildings.
Conclusion
The changes to the EQC, now the Natural Hazards Commission Toka Tū Ake, represent a significant step forward in New Zealand’s approach to natural hazards insurance. By simplifying the claims process and expanding the range of covered hazards, the commission is better equipped to help homeowners prepare for and recover from natural disasters.
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