The Insurance Council is rejecting Labour Party proposals to set up a specialised Earthquake Court, saying it could make the whole process drag out for longer and the only winners would be lawyers.
Labour leader David Cunliffe earlier today released the first of the party's policies aimed at lifting the Canterbury recovery effort. These included a special court to deal with unresolved insurance claims of up to $1 million. The Crown would pay for lawyers' and witness fees, and recoup expenses through a levy on insurance companies and the Earthquake Commission, proportionate to the awards granted by the court.
Read more: Labour promises Earthquake Court for unresolved insurance claims
Mr Cunliffe said he would resort to "alternative regulatory means" if the insurance industry did not act in good faith with the new system.
But Insurance Council chief executive Tim Grafton said the policy was "misguided".