Reforms to New Zealand’s Earthquake Commission (EQC) Act will be delayed until next year as the Government grapples with the potential changes.

Submissions on a discussion document closed in September last year, and the Government had flagged plans to introduce a bill to Parliament early this year.

“The Treasury continues to actively work on the review,” a spokesman told insuranceNEWS.com.au.

“This phase has taken longer than expected due to the complexity of the issues and ongoing engagement with insurance industry stakeholders.”

No decisions have been made on timing for the release of submissions or the introduction of an EQC bill, but the spokesman says officials anticipate it will be “some time” next year.

The discussion paper proposed private insurers should take the lead in handling claims, rather than requiring claimants to also notify the EQC. The commission would no longer provide contents insurance, while building cover would be extended to include site works and access ways.

As a result, the paper suggests the EQC maximum cover should double to $NZ200,000 ($189,560).

An Insurance Council of New Zealand submission on proposed changes backed lodgement of claims with private insurers, but argued combining site work into a single building cap may lead to underinsurance.

CEO Tim Grafton said on Friday that engagement with officials on the EQC Act review has been “very constructive”.

The current EQC scheme has existed since 1993.