NZ Parliament passes Earthquake Commission overhaul bill

27 February 2023

New Zealand’s Parliament has passed the Natural Hazards Insurance Bill, which replaces and simplifies Earthquake Commission (EQC) legislation and introduces a number of changes recommended by a public inquiry into the handling of Christchurch claims.

“This Government is improving the Earthquake Commission scheme, so in future New Zealanders don’t have to go through the same traumatic experiences as the people of Canterbury,” Minister Responsible for the EQC Deborah Russell said last week.

“This is also relevant in the wake of the recent floods in Auckland and wide-spread damage caused by Cyclone Gabrielle.”

The Act, which takes effect from July next year, changes the EQC name to Toka Tu Ake – Natural Hazards Commission.

“The Natural Hazards Insurance Act recognises that EQC’s mandate extends further than just helping people recover from earthquakes,” Ms Russell said. “In fact, its insurance scheme also covers storm, floods, landslips, volcanoes, tsunami and hydrothermal activity.”

The bill has incorporated recommendations from Dame Silvia Cartwright’s 2020 Public Inquiry into the EQC. It makes rules clearer for mixed and multi-use buildings, clarifies law relating to repairing buildings and land following a landslip or other land damage and simplifies excesses and calculations for retaining walls, bridges and culverts.

A claimant code and a standing dispute resolution service will also come into effect so future claimants can access support in the immediate aftermath of a natural disaster.

The Government says claimants will still lodge claims with their insurer to access entitlements via Toka tu Ake - Natural Hazards Commission following any event.