National attacks tenants insurance bill

National says a bill forcing landlords to insure tenants has been criticised by insurance bodies.

National Party housing spokesman Phil Heatley told Parliament that Labour MP Maryan Street's member's bill - the Residential Tenancies (Damage Insurance) Amendment Bill - had been criticised by the Insurance Council of New Zealand and the Real Estate Institute of New Zealand in submissions. The bill aimed to protect tenants against personal liability for damage they were not responsible for by requiring landlords to insure the interests of tenants.

Mr Heatley said under the bill, landlords would struggle to get insurance for their tenants, and tenants with a poor insurance history would be unable to get accommodation.

Later, Mr Heatley said the bill would mean landlords would face extra costs which they would pass on to tenants.

"Both the Insurance Council and the Real Estate Institute agree that landlords would struggle to get insurance for their tenants in the first instance and, even if they did, there would be a series of negative unintended consequences.

In Parliament, Mr Heatley asked why Ms Street had not consulted the insurance bodies.

She said the bill was "drafted in response to concerns raised by the judiciary in the course of giving reasons for a judgment".

- NZPA