Calls for Government to step in over insurance

10:15 pm on 27 March 2012

Christchurch residents collective CanCERN says people are at their wits' end with lengthy insurance negotiations and it's time for the Government to step in and streamline the process.

CanCERN is asking the Government to implement three measures it has designed to speed up insurance and Earthquake Commission settlements for Canterbury homeowners.

The measures would allow EQC to align its interpretation of replacement value with homeowners' insurance policies, as well as paying out homeowners in cases where EQC and insurers agree on the total damage figure but not on apportionment.

CanCERN also proposes to put together a working group to develop consistent and standardised repair methods and cost ranges.

CanCERN spokesperson Leanne Curtis says it would like to see the measures applied within the next eight weeks.

The Government says it is doing all it can to streamline the insurance claim process for Canterbury homeowners.

Earthquake Recovery Minister Gerry Brownlee says Government intervention in private insurance contracts would invalidate the contracts.

He also says if EQC paid for private insurers' liabilities, then ratepayer and taxpayers would face a multi-billion dollar bill.