Insurance Council Should Put Its Money Where Its Mouth Is

24 June 2002

Local Government New Zealand has slammed the Insurance Council for ignorance and misleading statements - as well as what appears to be complete disregard for the current crisis in the Thames-Coromandel District.

Basil Morrison, President of Local Government New Zealand, said councils around New Zealand await eagerly the Insurance Council proposal for a national campaign to increase the number of individuals and properties insured instead of slamming councils for not doing the same.

“Since when has it been a council’s business to do publicity campaigns for property insurance?” asked Mr Morrison.

“Worse than their claims that councils should do this, is their complete ignorance about the National Disaster Recovery Plan and the role it plays in assisting communities to manage following disasters such as this,” Mr Morrison said.

The National Disaster Recovery Plan was established by the Government to do two things:

- assist with costs incurred in managing a disaster (it is from this portion that a contribution to the Mayoral Relief Fund was made)

- assist with costs associated with rebuilding essential infrastructure following a disaster.

Mr Morrison reiterated that this was worse than a one-in-one-hundred-year event that has devastated small communities despite the substantial investment in flood protection works by both the Thames-Coromandel District Council and Environment Waikato.

“The Insurance Council shows ignorance and self interest which is, at best unappealing, and, at worst disgraceful, in this time of personal loss and suffering for the people and communities affected. If they want more people to buy insurance then they need to look at their own product promotion as well as, perhaps, the capability of all New Zealanders affording this,” Mr Morrison said.

END

Contact Person: Basil Morrison. President, Local Government New Zealand, 025 946 403

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