Smith StuartINSURANCE (PROMPT SETTLEMENT OF CLAIMS FOR UNINHABITABLE RESIDENTIAL PROPERTY) BILLFirst ReadingSTUART SMITH (National—Kaikōura): I move That the Insurance (Prompt Settlement of Claims for Uninhabitable Residential Property) Bill be now read a first time. I nominate the Governance and Administration Committee to consider this bill.This bill is about the insurance sector and those that have had their homes insured in order to protect against risks that might cause damage to their homes. Insurance plays a vital part in protecting society from the many risks that we face in New Zealand by making people financially whole following damage to their home which results in loss. The importance of insurers is highlighted by the fact that they contributed billions of dollars for the rebuild of Christchurch and Kaikōura following the earthquakes in those regions. Insurance provides certainty and allows for a far speedier recovery than without it. A home is the largest asset most people have and without insurance would be left with little should damage occur to their home. However I have heard from too many people affected by the Kaikōura Christchurch and Seddon earthquakes that dealing with insurance was more stressful than the earthquake itself. There is currently a lack of legislative framework and clarity around settlement offers for insurance claims which can result in great stress being placed on homeowners who may find themselves waiting long periods of time before a claim is settled. During this time they're required to find a suitable accommodation elsewhere for long periods of time which is disruptive to their lives. My member's bill aims to make life a little easier for people who are dealing with the long-term effects of losing their home. This bill introduces a legal time line for insurance companies to assess and present a settlement offer to claimants and it provides an opportunity for the time frame to be extended in extreme circumstances at the Minister's discretion which will see a faster response and resolution for claimants. This bill will require an insurer to make a decision about a claim and notify claimants within six months of receiving the claim. This will speed up the process and give claimants greater clarity about when they can expect a resolution which will help ease stress during difficult times and allow them to get back on with their lives sooner.While policy holders are required to have their insurance premiums up to date there is currently no time requirement for insurers to assess claims and make an offer. There must be a clearer understanding of obligations both for the insured and the insurer as to the time it will take to accept the claim and for a settlement offer to be made. In extreme circumstances the Minister will have the discretion to grant an extension to the six-month deadline. The detailed provisions of the bill have been studied by insurance companies and the Insurance Council. The communications I have received from them have all generally been supportive of the bill with no major issues raised. I look forward to any issues that are identified being considered by the select committee. This is an important bill for the insurance sector and for everyday Kiwis who own a home. It's important that after events like the Kaikōura Christchurch and Seddon earthquakes we work to identify lessons and make changes to improve our responses for future events. Putting into law a deadline for insurance companies to make an offer to claimants will be a step forward.I feel privileged to have the opportunity to develop legislation that will bring immeasurable benefits to New Zealanders. As such I'm very pleased to move this bill through its first reading. Thank you.