NZ’s national injury insurer, the Accident Compensation Corporation (ACC), expects the second Christchurch earthquake to cost it $NZ370 million ($270.4 million).

The government-owned ACC provides no-fault cover to New Zealanders and foreign visitors, covering costs such as ongoing medical care, lost income and compensation to dependants.

Individuals can’t sue for personal injury, except for punitive damages.

ACC Minister Nick Smith says the corporation’s preliminary estimate of costs will be paid out over decades as recipients use rehabilitation and care services.

Employers normally pay the first week of income compensation for people injured at work but the Government has decided that for the earthquake victims, the ACC will pay injured earners from the date of injury.

The corporation has reserves of $NZ14 billion ($10.2 billion) and receives more than $NZ3 billion ($2.19 billion) a year in claims. It is funded by levies on employers and employees, motor vehicle registration and petrol.