Labour is proposing a sweeping overhaul of New Zealand's disaster insurance regime including shifting EQC levies from insurance premiums to rates bills, lifting the $100,000 cap on EQC payouts and putting in a new independent insurance commissioner whose first job would be to review the insurance industry and EQC's handling of the Canterbury quake aftermath.
"The Canterbury earthquakes have highlighted just how under-prepared both the industry and EQC were to handle a major disaster" Labour's Earthquake Commission (EQC) spokesman Clayton Cosgrove said.
"Being able to call on EQC's natural disaster fund has certainly lessened the cost of the rebuild for the rest of New Zealand. However the earthquakes also exposed some serious shortfalls, not the least the lengthy and stressful claims process faced by affected residents."
Labour's response would be to shift the current EQC levy which adds as much as $207 a year to household home and contents insurance premiums to the rates collected by local authorities.
That would mean all residential properties were covered.