Wednesday, August 31, 2011
Now it is official EQC is broke.
Now is the time to reassess its relevance, practicability, efficiency and even if it was best Practice in any measure.
After some 60 years of accumulation that suffered a few small set backs it has only just covered the ultimate test of its performance as we speak.
If as many expected Wellington had suffered an equally calamitous event then its inadequacy would have been cruelly exposed. That may still occur as I do not accept 1 in 100 year events can't happen in successive years.
I have posted previously on allowing the insurance Industry to incorporate quake risk as another part of its comprehensive cover, let the insurers meet that as an annual levy and get the government out of the business they were hopelessly unprepared to meet their obligations in.
I am aware of many rorts where deferred maintenance and non quake related damage have been compensated in quake settlements by a casualised workforce that company assessors protecting a companies policy as opposed to a "bottomless pit that the gummint would cover", would have declined as such.
Sheesh even those who choose to under-insure or don't insure at all, have received compensation from the EQC fund.
All the while many who thought they had acted responsibly are now finding they are aggrieved at what they see as less than their perceived real cover with the crossover between EQC and their insurer complicated by a welfare component from the Government.
Following the upcoming election the new government should place the whole problem to a comprehensive review and leave the default socialist position out of it.