industry update - cam preston
TRANSCRIPT
![Page 1: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/1.jpg)
![Page 2: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/2.jpg)
1. THE STANDARD
2. COMPLY WITH APPLICABLE LAWS
3. ENABLING WORKS
4. CASH PAYMENT
![Page 3: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/3.jpg)
#1 THE
STANDARD
![Page 4: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/4.jpg)
![Page 5: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/5.jpg)
War Damages Act 1941-44
“property or any part thereof.. destroyed or damaged…is insured to any amount under any contract of fire insurance made in New Zealand with an insurance company…the property shall at all times be insured under this Act to the same amount against war damage”
![Page 6: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/6.jpg)
Earthquake and War Damages Act 1944-1993
“to the same amount against earthquake
damage and war damage”
![Page 7: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/7.jpg)
Standard aligned to your Private Insurance Fire
Policy
![Page 8: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/8.jpg)
Divergence from Fire Insurance
![Page 9: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/9.jpg)
![Page 10: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/10.jpg)
Commission of Inquiry into the Abbotsford Landslip Disaster 1980- Land cover recommended-“Declaration of Value” (sum insured) recommended for dwellings
![Page 11: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/11.jpg)
![Page 12: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/12.jpg)
A Review of Natural Disaster Insurance Arrangements, Aon 1987- Replacement Value -“free market forces should prevail”…government may be able to withdraw”
![Page 13: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/13.jpg)
Disaster Insurance Bill 1989 (DIC)-Replacement Value (undefined)“every owner of a home shall ensure that the home is insured at all times for replacement under any earthquake cover policy issued by an insurance company or the Commission”
![Page 14: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/14.jpg)
Earthquake Commission Act 1993Replacement Value but $100k cap“replacing or reinstating the building to a condition substantially the same as but not better or more extensive than its condition when new, modified as necessary to comply with any applicable laws”
![Page 15: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/15.jpg)
Convergence with Fire
Insurance
![Page 16: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/16.jpg)
1. When New 2. Comply with any applicable
laws
![Page 17: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/17.jpg)
BUT
![Page 18: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/18.jpg)
![Page 19: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/19.jpg)
Oct 11“return to pre-earthquake
condition”
![Page 20: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/20.jpg)
2009: “Claims were settled to standards of individual and overall fairness perceived as acceptable by the public”
![Page 21: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/21.jpg)
#2 APPLICABLE
LAWS
![Page 22: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/22.jpg)
![Page 23: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/23.jpg)
December 2010: “Pre-earthquake”
![Page 24: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/24.jpg)
![Page 25: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/25.jpg)
![Page 26: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/26.jpg)
“Reinsurers have suffered significant loss as a result of these earthquakes. More discussion is required by the EAG with the Insurance Council and Government if we are to effect any satisfactory way forward”
![Page 27: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/27.jpg)
Relaxation
![Page 28: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/28.jpg)
“Guidance advantages:
reduced costs for earthquake repairs
for insurers”
![Page 29: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/29.jpg)
“Spending too much in Canterbury”
![Page 30: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/30.jpg)
“Concentrate on cost control”
![Page 31: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/31.jpg)
#3 ENABLING
WORKS
![Page 32: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/32.jpg)
“it is necessary to do work on an undamaged part
of the house”
![Page 33: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/33.jpg)
![Page 34: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/34.jpg)
Land, Land, Land
Foundations, Foundations, Foundations
![Page 35: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/35.jpg)
“The preferred method…has led to a material reduction in the estimated land
liability”
![Page 36: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/36.jpg)
#4 CASH PAYMENT
![Page 37: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/37.jpg)
reasonably sufficient
![Page 38: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/38.jpg)
A) Cash payment = When NewB) Fletcher EQR Managed Repair = When New (but only reasonably sufficient)
![Page 39: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/39.jpg)
TOP 10 TIPS
![Page 40: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/40.jpg)
1. If their lips are moving
they are lying to you
![Page 41: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/41.jpg)
2. Forget the MBIE “Guidance” for
assessment of EQ damage
(it was to save $ for insurers/EQC)
![Page 42: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/42.jpg)
3. Land, Land, LandFoundations, Foundations, Foundations.
![Page 43: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/43.jpg)
4. It’s all about the Brief (instruction/ proposal/ terms/
conditions)
![Page 44: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/44.jpg)
5. Fletcher/ staff are all employees of
EQC – its all about EQC
![Page 45: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/45.jpg)
6. Ask for it in writing
![Page 46: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/46.jpg)
7. Get good
advice
![Page 47: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/47.jpg)
8. Their main tool is
delay
![Page 48: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/48.jpg)
9. You can reopen your EQC claim
![Page 49: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/49.jpg)
10. It’s up to YOU
![Page 50: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/50.jpg)
1. The only STANDARD that matters to EQC and Insurers is the standard of “Public Perception” the law is secondary.
1. Govt. controls both EQC and the APPLICABLE LAWS – a dangerous cocktail – never mix your drinks – you will get a hangover.
2. The biggest cost, due to ENABLING WORKS, is fixing your land and foundation damage – but these are covered by EQC
3. The Fletcher repair programme is a rushed and botched attempt to use the “reasonably sufficient” caveat to save $, rather than CASH SETTLE
![Page 51: Industry update - cam preston](https://reader034.vdocument.in/reader034/viewer/2022051520/58ed4c641a28aba04d8b470b/html5/thumbnails/51.jpg)
Where are they?