As of 1 July 2024, our name changed from the Earthquake
Commission to the Natural Hazards Commission Toka Tū
Ake. Find out more about our organisation and insurance
scheme o
n www.naturalhazards.govt.nz
1 May 2026
Kenny McCormack
[FYI request #34320 email]
Our reference: OIA25-26 648
Tēnā koe Kenny,
Official Information Act 1982 request
Thank you for your enquiry of 31 March 2026, asking for the following under the Official
Information Act 1982 (the OIA) in relation to on-sold properties:
“On 20 September 2023, The Press published an article, titled, “Uncertainty remains for on-
sold EQC claimants”, EQC is quoted as saying “In the remaining cases [outside of the on-
sold scheme/support package] where earthquake damage exceeds the statutory cap and
there is no access to private insurance cover, we assess on a case-by-case basis to
determine if an ex-gratia settlement is required”.
The Press further adds, “Andrews said after a review of claims not eligible for the
Government’s one-off on-sold support package, only a few were determined to warrant an
ex-gratia settlement”.
Finally, The Press highlights, “Unlike the on-sold scheme, which was funded by Treasury,
EQC funds ex-gratia payments through its natural disaster fund”.
I request all official information held by EQC/NHC in relation to how it assesses, in required
cases, whether an ex-gratia offer is warranted, how these payments are calculated and on
what terms (if any) these are put forward.”
Context
Natural Hazard Cover
The Natural Hazards Commission Toka Tū Ake (NHC) must settle a customer’s natural hazard
damage claim up to a customer’s maximum entitlement (the cap) under either the Earthquake
Commission Act 1993 or the Natural Hazards Insurance Act 2023. At the time of the Canterbury
Earthquake Sequence (CES), the EQC Act covered residential buildings up to a cap of $100,000
(plus GST).
Natural Hazards Commission Toka Tū Ake
161 Victoria Street
Wellington 6011, New Zealand
Corporate Mail: PO Box 790, Wellington 6140
Telephone: (04) 978-6400
Claims Mail: PO Box 311, Wellington 6140
Fax: (04) 978-6431
www.naturalhazards.govt.nz
Ex gratia payments
An ex gratia payment is not an insurance payment or other statutory entitlement. It is a
discretionary payment that is made without legal obligation or acceptance of liability.
Government’s On-sold support package
The Government’s On-sold support package (On-sold programme) provides ex gratia payments
to eligible homeowners in Canterbury to cover the over-cap portion of the cost to repair natural
disaster damage arising from the Canterbury Earthquake Sequence. Applications for the On-
sold programme closed on 14 October 2020, and we have been working with applicants since
then to progress applications and repair earthquake affected homes.
For properties that were not eligible for the On-sold programme, in appropriate cases, NHC can
make ex gratia payments to resolve claims.
Response
Information regarding whether to make an ex gratia payment.
We have interpreted this part of your request to be for any information NHC uses to determine
whether to make an ex-gratia payment for the over-cap portion of an On-sold property outside
of the On-sold programme.
By nature, ex gratia payments made by NHC are discretionary, and are made based on the
specific circumstances of the claim. As such, NHC does not have set policies or processes to
determine how it assesses whether to make an ex-gratia payment for the over-cap portion of an
On-sold property outside of the On-sold programme. Therefore, we are unable to provide
information of this nature. This decision is made under section 18(e) of the OIA – that the
document alleged to contain the information requested does not exist or, despite reasonable
efforts to locate it, cannot be found.
Due to the discretionary nature of ex gratia payments, we are withholding details or examples of
specific circumstances where an ex gratia payment was considered under section 9(2)(j) of the
OIA – enable a Minister of the Crown or any public service agency or organisation holding the
information to carry on, without prejudice or disadvantage, negotiations (including commercial
and industrial negotiations).
How payments are calculated and on what terms
If NHC decide to make an ex gratia payment, the amount offered by NHC will depend on the
specific facts of each case. Additionally, any ex gratia payments made are subject to confidential
agreements.
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As such, details regarding how ex gratia offers are calculated and on what terms the offer is
made are withheld under section 9(2)(j) of the OIA – enable a Minister of the Crown or any
public service agency or organisation holding the information to carry on, without prejudice or
disadvantage, negotiations (including commercial and industrial negotiations).
As required under section 9(1) of the OIA, we have considered the public interest in the release
of the withheld information. We do not consider the public interest considerations favouring
release are sufficient to outweigh the need to withhold it.
You have the right to ask the Ombudsman to investigate and review this response. You can
contact the Office of the Ombudsman through the website:
www.ombudsman.parliament.nz.
Ngā mihi
Ryan O’Leary
Senior Advisor Government Relations | Kaitohutohu Hononga Kāwanatanga Matua
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