The Kiwi's have a pretty good system in place that has been operating I believe since about 1943 in the "New Zealand Earthquake Commission".
Just as we have a 2% 'Terrorist Levy' on base premiums of Commercial Property, Business Interuption and some Public Liability insurance policies, why don't we have a 'Natural Disaster Levy' on ALL domestic and commercial insurance policies?
For those unaware; The Terrorism Insurance Act 2003 establishes a scheme for replacement terrorism insurance coverage for commercial property and business interruption. This legislation overrides terrorism exclusion clauses in eligible insurance contracts. Eligible insurance contracts have a starting point definition of insurance for loss of or damage to eligible property located in Australia, and associated business interruption and public liability cover. Eligible property is defined as buildings or other structures or works on, in or under land, or tangible property that is located in or on that property.
This would be overseen by the appropriate body.
Not sure whether Brumby got rid of the ridiculous and expensive fire levy paid by Victorians on their insurance policies as he said he would do, but good time to do so anyway.
The Kiwi's in the event of an earthquake claim the first portion of the damage from the Earthquake Commission, then any other damages on their insurance policy. The levy to support the commission is paid through their annual insurance policy renewals. No insurance policy, no claim allowable. It is very successful and has a huge bank of mony for covering these disasters. It also definitely helps to ensure people insure their property correctly and they cannot bleat ignorance when there is a disaster and look to those that paid their insurances for a bail out.
