Why bother getting insurance?

Homepaddock highlights this policy from NZ First:

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.

Very unwise for a party on 4% to start laying down non-negotiable policies two years before an election.

Ele points out:

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.

Exactly. The precedent would be horrible. You’d be mad to ever get insurance again.

Now remember that NZ First has said this is a non-negotiable bottom line policy for any future Government.

Isn’t MMP great!