The Insurance Council of New Zealand (ICNZ) will continue to seek improvements to the Earthquake Commission (EQC) Act after welcoming changes announced by the Government last week.

Changes include increasing the EQC claims cap for residential building cover from $NZ100,000 ($93,925) to $NZ150,000 ($140,888) plus GST, removing contents from the commission’s remit and extending the time limit for claim notifications after a disaster to two years from three months.

ICNZ says a provision that clarifies EQC can share information with insurers to assist in settlement of claims is also important.

“The last thing that’s needed when you are trying to settle claims after a catastrophe is bureaucratic hurdles creating delays when information-sharing is essential to speed recovery and safeguard people,” CEO Tim Grafton said.

ICNZ is continuing to push for insurers to manage and settle all claims as agents for the EQC, arguing it is more efficient than a split process whereby they handle contents and property damage over a specified level.

The proposal was tested after the Kaikoura earthquake and Mr Grafton says the recovery has progressed more smoothly and efficiently than following the Canterbury quakes.

“It’s the insurers that have the relationships with customers and the bulk of resources and will already be involved in settling contents claims in any event,” Mr Grafton said.

Minister Responsible for the Earthquake Commission Megan Woods says removing EQC cover for contents will help reduce delays in resolving residential building and land damage claims.

“Government has talked to the insurers and the indication is that private insurance cover for contents will continue to be available at a reasonable cost,” she said.

The legislative changes are expected to pass Parliament by the end of the year, with the increased cap to take effect from July next year.

The Government will examine further EQC changes as part of an upcoming inquiry.