NZ First pledges to kill insurance industry

New Zealand First has pledged to give full compensation to Christchurch landowners:

All Christchurch uninsured red-zoned land owners who accept the current Government’s 50 per cent compensation offer will get the other half should New Zealand First become part of the next coalition Government.

Ensuring these landowners are treated fairly and receive the full rateable value of the land will be a bottom line in any coalition negotiations. . .

The party obviously doesn’t understand that what it regards as treating these landowners fairly would be treating insurance companies, their staff and shareholders, and taxpayers most unfairly.

This would kill the insurance industry because no-one would bother insuring their properties if they knew the government would pick up the pieces after a disaster.

This policy passes all the risk and costs from private property owners and insurance companies to the government which means taxpayers.

About these ads

3 Responses to NZ First pledges to kill insurance industry

  1. Mark R says:

    Surely this would only be on the actual ‘land value’ and not the value of improvements. As far as I am aware land value does not form part of a standard insurance policy, therefore any improvement on a ‘50% of valuation’ pay-out would surely be just. The government is the one saying the land is not stable enough to be re-built on.
    In the end there would be no detrimental effect on the insurance industry. Perhaps, however, I have the wrong impression.

  2. pdm says:

    In true left wing fashion Winston First is prepared to use other peoples money to buy votes.

    Pay back the $158,000 plus accrued interest that you misappropriated in 2005 Winston.

  3. [...] Homepaddock highlights this policy from NZ First: [...]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 1,284 other followers

%d bloggers like this: