The new Natural Hazards Insurance Act 2023 will replace the Earthquake Commission Act 1993. It responds to the 2020 report of the Public Inquiry into the Earthquake Commission, which was set up following the Christchurch earthquake series.

The primary purpose of the new Act is to “contribute to the replacement or reinstatement of dwellings that suffer natural hazard damage” [s 4(1)].

Section 4(4) specifies that cover will be provided for damage

• to residential buildings that is a direct result of an earthquake, hydrothermal activity, a landslide, a tsunami, or volcanic activity or a fire that is a consequence of any of those hazards; and
• to residential land that is a direct result of any of those hazards or a storm or a flood, or a fire that is a consequence of a storm or flood.

The Earthquake Commission will be renamed Toka Tū Ake – Natural Hazards Commission. The Commission will administer the Natural Hazard Fund (a continuation of the Natural Disaster Fund), which is funded through fire insurance levies, investment earnings and top-up payments made by the responsible Minister. The Fund is owned and managed by Toka Tū Ake – Natural Hazards Commission on behalf of the Crown.

The new Act requires the Minister to produce a Code of Insured Persons’ Rights [Part 3, subpart 4] and requires the Commission to publish a complaint management procedure to deal with breaches of the Code [Part 3, subparts 5, 6 and 7].

Following the third reading the Minister in charge of the Bill, Hon Dr Deborah Russell, said:

"The NHI Act makes the rules for mixed and multi-use buildings clearer, it clarifies law relating to repairing buildings and land following a landslip or other land damage, and simplifies the excesses and calculations for retaining walls, bridges and culverts."

People will still lodge claims through their insurer. The new Act will not affect claims made prior to the commencement date of 1 July 2024.