The New Zealand Opposition has called for the establishment of an independent insurance commissioner to put in place a dispute resolution mechanism for Canterbury residents.

“Cantabrians need someone standing in their corner,” Opposition leader David Shearer told a manufacturing association breakfast in Christchurch last week.

Christchurch East MP and Opposition spokesman for Earthquake Recovery Lianne Dalziel says she won’t pre-empt recommendations on how best to establish this mechanism.

“They might decide to beef up the [Insurance and Savings] Ombudsman or they might say something more independent of the industry is required,” she told insuranceNEWS.com.au.

Canterbury residents are dealing with the long and “highly complicated” apportionment process, having properties assessed by insurers and the Earthquake Commission (EQC) to work out how much damage each earthquake caused, she says.

“The complete abandonment of residents of Christchurch to deal with insurance companies on their own has been one of the hardest things to take,” she said. “These are well resourced companies and people are struggling to get resolution.”

The Opposition says the commissioner would also review the whole New Zealand insurance industry, covering the terminology used, levels of cover and the relationship between the insurance industry and the EQC.

“We support the Government review of the EQC,” Ms Dalziel said. “We want to review how things have happened here and whether there is something we can learn. Does the industry need better regulation?”

She also emphasises the need for better community understanding of insurance and risk.

“The experience in Christchurch has opened our eyes to some of the insurance terms that people haven’t been used to experiencing,” Ms Dalziel said. “People would be better prepared if they understood the nature of the cover they have.”

The Opposition has also committed to funding some test cases Canterbury residents are bringing against their insurers if it wins the election, due late next year.

The cases particularly affect the red zone, where the Government has ruled the land is damaged so badly it is unsuitable for residential living.

Claimants argue they should be paid replacement value for their properties, not repair costs, as they cannot repair their homes on red-zoned land.

Opposition leader David Shearer says each time he visits Christchurch, residents tell him they are “not being listened to”.

“We need decisions from the grassroots up, not the Beehive [parliamentary offices in Wellington] down,” he said.