Feature

Insurers are cautiously welcoming a proposed tribunal to deal with Canterbury earthquake settlements.

Justice Minister Andrew Little introduced a bill designed to help Cantabrians resolve outstanding residential insurance claims from the 2010 and 2011 earthquakes.

“The bill delivers on pre-election promises and establishes a tribunal which will enable homeowners to resolve long-standing residential insurance claims including with Southern Response or the Earthquake Commission,” Little said.

“The tribunal will have the ability to award costs or general damages, and to appoint independent expert advisers to help the tribunal to understand the technical aspects of a claim.”

Greater Christchurch Regeneration Minister Megan Woods said it would make a real difference.

“People have waited too long to have their claims resolved. This tribunal will be another way to provide closure and help people move on with their lives. The delay to resolve residential insurance claims has had significant impact and we need more options to make progress and help them reach an outcome.

“The tribunal will have flexibility to tailor its approach to the needs of each case, and has various options available for resolving claims without a formal hearing, including referral to an independent, funded mediation service. The tribunal will be proactive, managing cases through the process and setting timeframes that must be followed so claims progress.”

The Insurance Council welcomed the idea.

 “The people of Canterbury have been waiting too long to get their lives back on track after the 2010-2011 earthquakes. This tribunal will hopefully be a meaningful step in getting them there,” chief executive Tim Grafton said.

But he said the proposal was not without flaws.

 “First, that the tribunal won’t be up and running until 2019, the best part of 18 months since the Government was elected,” said Grafton. 

“It will have been nearly nine years since the first quakes, far too long by anyone’s measure to be finally trying to sort this out. Insurers want to settle their customers’ claims as quickly as possible but we’re still receiving, on average, two claims a day from EQC.

“Second, we have concerns with the way the tribunal is proposed to be run. It will not allow insurers to bring cases, only policy-holders. This is unfair as it only deals with one half of the problem and the Ministry of Justice agrees, saying it creates inequity of access to justice. Some Cantabrians appear stuck, unable to make decisions and move their claims forward due to the enormity of the changes the earthquakes have wrought on their lives. A tribunal that allowed both sides to bring claims would be fair and balanced and truly working towards the goal of helping everyone find resolutions and move forward from the quakes.”

He said the minister and ministry had failed to engage with stakeholders on the issues.

“While the Government’s own agencies, EQC and Southern Response, account for the majority of outstanding claims, neither they nor private insurers were consulted on this bill before its introduction. We were given an undertaking that would happen and that has not been followed through on. We have sought repeatedly to engage with the minister on this process but according to his own advice he and the ministry have spoken only to Treasury.”

Grafton said it would be important that the tribunal respected the rule so natural justice and fair procedure, the need to apply rules of evidence, to be bound by precedent and to have the ability to appeal significant points of law.

 “The people of Canterbury deserve better than a tardy process that fails the test for best practice policy development.”