Government to change EQC laws to prevent communities from suffering ‘years of trauma’

New legislation will be introduced next year to modernize the laws of the Earthquake Commission (EQC) to prevent communities from suffering “years of trauma and uncertainty” after a natural disaster, says the government.

The government announced its response to a damning public inquiry into EQC on Monday, five months after the report’s findings were released.

The 246-page report made 70 recommendations to clarify the role of EQC and improve the way it treated claimants, assessed damages, managed repairs, and resolved disputes.

Submissions to the investigation, led by Dame Silvia Cartwright, depicted a picture of an insurer beset by incompetence, dysfunction and arrogance.

READ MORE:
* Costly legacy of failed repairs discovered in a critical report from the Earthquake Commission
* Investigation Finds EQC Unprepared for Canterbury Earthquake Claims, Says Changes Needed
* EQC report: incompetence, dysfunction, and arrogance – people’s experiences exposed
* EQC investigation into Christchurch earthquake claims handling ends

EQC Minister Grant Robertson said on Monday that the government had accepted the report’s 70 recommendations.

He was adamant that no other community should live with failed repairs and years of trauma and uncertainty after a significant natural disaster.

“This is an important time for the people of Canterbury to know that their voices have been heard. EQC will change and the way we handle disasters of this type in the future will be better and different. “

He said it should have been obvious to the previous government how “desperately ill-prepared” EQC was to handle the 469,431 claims it received.

“EQC was doomed to failure due to a lack of planning, resources and experience to meet what was required of it.”

Robertson hoped to introduce legislation in the middle of next year to modernize the EQC Act.

Changes would be made to key definitions, including exactly what reinstallation means and how to deal with multi-unit buildings.

The government will investigate whether to lift the EQC liability limit on residential buildings from $ 150,000.

At the time of the earthquakes, the limit was $ 100,000 plus GST.

Robertson said work was underway to consider who would run a managed repair program, if one were to be set up in the future.

Cartwright found that a managed remediation program can be even better down the road in the event of major natural disasters, but there needs to be a threshold for when it will be used and clear planning for how it would be staffed and how it would work.

Greater Christchurch Regeneration Minister Megan Woods said the government had already made changes to address some issues highlighted by Dame Silvia.

“For example, providing access to affordable dispute resolution through the Greater Christchurch Claims Resolution Service and the Canterbury Earthquake Insurance Court.”

Woods said the government was committed to implementing all of the report’s recommendations.

“What happened to the Canterbury community should not happen again.

“We are determined to ensure that the lessons learned here mean that, in the future, when natural disasters occur, as they inevitably will, there is a system in place that is coordinated and adequately resourced, planned and fit for purpose.”

EQC President Mary-Jane Daly said that EQC in 2020 was a completely different organization than it was in August 2010.

“We are confident that we are now better prepared to help all New Zealanders prepare for and recover from the next natural disaster whenever it strikes.”

Improving the customer experience has been a key focus for EQC, including implementing more efficient claims processes and building stronger partnerships with other agencies, Daly said.

“We have apologized to the people of Canterbury for letting them down in their time of need and have accepted their comments and recommendations.”

Plaintiff Reference Group Chair Ali Jones said the group was pleased to see renewed focus on Plaintiff.

“It is a pleasure to hear that EQC is well advanced in implementing all the recommendations of the Cartwright report.”

However, Jones said, there must be better and consistent staff training on all matters related to the EQC Act and the claims management process. CRG was also concerned about the lack of consistent and independent engineering assessments related to earthquake claims.

CRG wanted robust quality assurance systems in place so that regular and effective audits of processes and suppliers could be performed.

“Once these things are established, only then do we believe that applicants can be confident that EQC will be better configured to help all New Zealanders prepare for and recover from the next natural disaster whenever it happens.”

Friday, September 4, marks 10 years since the Darfield-centered earthquake, the first in a series of devastating Canterbury earthquakes.

EQC has 1,500 earthquake claims on its books, including many repairs that went wrong the first time. The cost of failed claims so far is approximately $ 560 million.

Woods said 337 claims had been open for more than 12 months, a 77 percent drop from 1,457 when this administration took office in 2017.

The investigation, which began in November 2018, received nearly 1,000 written submissions from individuals and groups, and heard face-to-face comments in 18 public forums.

“The earthquake did not break me. EQC almost did, ”one owner told the investigation.

Many reported experiencing high levels of stress, with effects including approaching a mental breakdown, feeling suicidal, and developing post-traumatic stress disorder.

Cartwright said the feedback carried “enough weight that it cannot be ignored.”