Rise in EQC levy will increase Police Fire & General premiums
The Government has increased Earthquake Commission (EQC) levies from 5 cents to 15 cents per $100 of insurance cover, with an annual cap $172.50 per home and $34.50 per contents policy (including GST). The increase is effective from February 1 next year.
Finance Minister Bill English said the rise would help rebuild the commission's Natural Disaster Fund and to more realistically reflect EQC's operating costs.
The levy contributes to EQC's earthquake insurance, which covers the first $100,000 of house damage, the first $20,000 of contents damage and damage to land, which is not covered by commercial insurers.
The EQC levy is collected in insurance company premiums for home and contents insurance and members with this cover through Police Fire and General Insurance will see an increase in their premiums from the deduction date of February 15, 2012. The Government has said the increase will add about $2.65 a week to most home insurance premiums.
For further information see: http://www.billenglish.co.nz/archives/750-EQC-levies-rise-to-realistically-reflect-costs.html
What you have to do
Members will receive a personal email or letter in the second half of January 2012, outlining individual premium changes.
Members who pay premiums through the Police payroll system
The new amount will be automatically deducted in the Police pay of February 15, 2012.
Members who pay premiums through the Police & Families Credit Union account
The new amount will be automatically deducted from your Credit Union account on February 15, 2012. You will need sufficient funds in your account to cover the new premium and automatic payments going into this account may need to be adjusted to cover the increase.
