Labour's latest policy idea

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geekiegeek

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#147105 9-Jun-2014 15:08

see stuff - http://www.stuff.co.nz/national/10134984/Labour-promises-quake-court-and-flooding-work

I think the key statement here is "All costs, including lawyers' charges and expert witness fees, would be paid for by the Crown, which would recoup them from the insurance companies and EQC as a levy in proportion to the size of the awards made by the court"

This basically means that everybody's insurance premiums will go up. How much are they expecting this to cost, my guess is they have no idea especially when you are covering lawyer and "expert witness" fees.

And inst EQC already broke?

Crazy IMO

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#1061837 9-Jun-2014 15:26

I have family in Christchurch, three years on and they are still fighting their insurance company, I think they will like this policy.

geekiegeek

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#1061841 9-Jun-2014 15:33

KiwiNZ: I have family in Christchurch, three years on and they are still fighting their insurance company, I think they will like this policy.

I'm sure they will however they will also face higher premiums along with the rest of the country so even those in Christchurch may want to think through the full ramifications of this. Even if the courts only last a few years I doubt the premiums will go down again.

mattwnz

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#1061844 9-Jun-2014 15:35

The big problem I see from this, is that it will cause everyones insurance policies to go up, and when that happens it will be the lower income people who will suffer, who will just not bother getting insurance if it is too expensive. So if something bad happens they will be totally left in the cold. I would prefer the money to come from the government directly, rather than increase insurance costs. But I think it does show that the whole thing is a mess.

MikeB4

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#1061848 9-Jun-2014 15:38

The premiums are going to rise anyway once the Insurance companies finally start paying out for Christchurch. My family members have paid for two independent assessments for the repairs of their home, both have been circa $185,000. Their insurance company has offered a cash settlement of $50,000 and wont budge.

trig42

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#1061866 9-Jun-2014 15:42

Premiums already have risen, this will just give them cause to rise further.

Pretty blatant vote buying by Labour, it will probably work though.

mattwnz

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#1061872 9-Jun-2014 15:47

KiwiNZ: The premiums are going to rise anyway once the Insurance companies finally start paying out for Christchurch. My family members have paid for two independent assessments for the repairs of their home, both have been circa $185,000. Their insurance company has offered a cash settlement of $50,000 and wont budge.

I thought they had already risen to accommodate all that. They do have underwriters anyway. Perhaps Labour should give actual figures with projections over 10 years on how much premiums will rise. I am not against the 'idea', but not for the way it is funded.

mattwnz

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#1061875 9-Jun-2014 15:49

trig42: Premiums already have risen, this will just give them cause to rise further.

Pretty blatant vote buying by Labour, it will probably work though.

People though shouldn't chose a party, just for the lollies in it, and what is in it for them. They should look at the big picture.

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geekiegeek

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#1061877 9-Jun-2014 15:51

Seems to be a Labour thing this election, make promises with no figures. Cuts to migration was another one where they come up with a vote grabbing policy with no details on how much the number will be cut by or from what countries.

I guess it leaves it open to say after the election, oh we checked the numbers and it was going to cost to much so we have decided not to go ahead.

onebytemike

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#1061881 9-Jun-2014 15:55

geekiegeek:

I'm sure they will however they will also face higher premiums along with the rest of the country so even those in Christchurch may want to think through the full ramifications of this. Even if the courts only last a few years I doubt the premiums will go down again.

Didn't it say it was to recover costs through a levy on your insurance policy? Insurance companies would only work as a collector of the levy and pass it on to local/national government. Shouldn't have any effect on policies or how much insurers are charging.

geekiegeek

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#1061888 9-Jun-2014 16:02

onebytemike:
geekiegeek:

I'm sure they will however they will also face higher premiums along with the rest of the country so even those in Christchurch may want to think through the full ramifications of this. Even if the courts only last a few years I doubt the premiums will go down again.

Didn't it say it was to recover costs through a levy on your insurance policy? Insurance companies would only work as a collector of the levy and pass it on to local/national government. Shouldn't have any effect on policies or how much insurers are charging.

The levy is charged to the insurance companies and EQC which is passed to consumers in the form of higher premiums, so basically a double wammy of extra levy's in the overall make-up of your premium.

MikeB4

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#1061895 9-Jun-2014 16:12

If the Insurance companies pulled finger and acted with a degree of decency all this can be avoided.

Ragnor

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#1061896 9-Jun-2014 16:13

geekiegeek:

The levy is charged to the insurance companies and EQC which is passed to consumers in the form of higher premiums, so basically a double wammy of extra levy's in the overall make-up of your premium.

Something seriously needs to be done to address the delaying tactics being used by the insurance companies it's getting silly.

I'm not sure this policy would be the best option but it's better than doing nothing.

onebytemike

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#1061898 9-Jun-2014 16:13

geekiegeek:
onebytemike:
geekiegeek:

I'm sure they will however they will also face higher premiums along with the rest of the country so even those in Christchurch may want to think through the full ramifications of this. Even if the courts only last a few years I doubt the premiums will go down again.

Didn't it say it was to recover costs through a levy on your insurance policy? Insurance companies would only work as a collector of the levy and pass it on to local/national government. Shouldn't have any effect on policies or how much insurers are charging.

The levy is charged to the insurance companies and EQC which is passed to consumers in the form of higher premiums, so basically a double wammy of extra levy's in the overall make-up of your premium.

Yes, but should be able to be itemized in your policy. It's not uncommon for a levy after such a large event to help with rebuilding and remediation. The only thing that's out of the ordinary is the length of time it's taking to get any sort of action from government to address the problems.

old3eyes

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#1061901 9-Jun-2014 16:23

onebytemike:
geekiegeek:
onebytemike:
geekiegeek:

I'm sure they will however they will also face higher premiums along with the rest of the country so even those in Christchurch may want to think through the full ramifications of this. Even if the courts only last a few years I doubt the premiums will go down again.

Didn't it say it was to recover costs through a levy on your insurance policy? Insurance companies would only work as a collector of the levy and pass it on to local/national government. Shouldn't have any effect on policies or how much insurers are charging.

The levy is charged to the insurance companies and EQC which is passed to consumers in the form of higher premiums, so basically a double wammy of extra levy's in the overall make-up of your premium.

Yes, but should be able to be itemized in your policy. It's not uncommon for a levy after such a large event to help with rebuilding and remediation. The only thing that's out of the ordinary is the length of time it's taking to get any sort of action from government to address the problems.

But what's the bet that once this levy goes on it will never come off again..

Regards,

Old3eyes

Glassboy

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#1061903 9-Jun-2014 16:24

geekiegeek: see stuff - http://www.stuff.co.nz/national/10134984/Labour-promises-quake-court-and-flooding-work

I think the key statement here is "All costs, including lawyers' charges and expert witness fees, would be paid for by the Crown, which would recoup them from the insurance companies and EQC as a levy in proportion to the size of the awards made by the court"

This basically means that everybody's insurance premiums will go up. How much are they expecting this to cost, my guess is they have no idea especially when you are covering lawyer and "expert witness" fees.

And inst EQC already broke?

Crazy IMO

It does appear on the surface that it would reduce the ability of EQC to respond to a disaster elsewhere in the country. I find it odd as I thought Christchurch had fairly safe Labour seats. Why come out with a policy that will disadvantage you through out the rest of the country?

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