This Act may be cited as the Earthquake and War Damage Act, 1944.

This Act shall come into force on the first day of January, 1945.

In this Act, unless the context otherwise requires,—

For the purposes of the definition of the term “war damage” in the last preceding subsection, such action against the enemy as is referred to in paragraph (a) of that definition—

For the purposes of this Act a renewal of a contract of insurance shall be deemed to be a new contract.

This Act shall bind the Crown.

For the purposes of this Act there shall be a Commission, to be called the Earthquake and War Damage Commission.

The Commission shall consist of—

The Governor-General may from time to time appoint one of the members of the Commission (other than the Minister) to be the Deputy Chairman of the Commission, and to hold office as such during the pleasure of the Governor-General.

The Commission shall be a body corporate with perpetual succession and a common seal, and shall be capable of holding real and personal property, of suing and being sued, and of doing and suffering all such other acts and things as bodies corporate may lawfully do and suffer.

The Commission shall be deemed to be the same body corporate as the War Damage Commission constituted under the War Damage Act, 1941.

The members of the Commission who are not officers of the Public Service shall be paid such salaries or other remuneration as may from time to time be fixed by the Minister, and such travelling allowances and expenses as may be prescribed by regulations made under this Act.

The Commission shall be charged with the duty of executing the provisions of this Act, and shall exercise such other functions as are conferred upon it by this Act or by any regulations made thereunder.

Any contract which if made between private persons must be by deed shall, when made by the Commission, be in writing under the common seal of the Commission.

Any contract which if made between private persons must be in writing signed by the persons to be charged therewith, may, when made by the Commission, be in writing signed by any person acting on behalf of and under the express or implied authority of the Commission.

Any contract which if made between private persons may be made orally may, when made by the Commission, be made orally by any person acting on behalf of and under the express or implied authority of the Commission.

The common seal of the Commission shall not be affixed to any document except pursuant to a resolution of the Commission, and the execution of any document so sealed shall be attested by two members of the Commission.

Meetings of the Commission shall be held at such times and places as the Commission or the Chairman from time to time determines.

At all meetings of the Commission four members shall constitute a quorum.

The Chairman at any meeting of the Commission shall have a deliberative vote, and, in the case of an equality of votes, shall also have a casting vote.

In the absence of the Minister from any meeting the Deputy Chairman, if present, shall be the Chairman of that meeting, and if he is not present the members present shall appoint one of their number to act as Chairman at that meeting.

In the absence from any meeting of the Commission of any member, being an officer of any Department of the Public Service, he may authorize any other officer of that Department to attend the meeting in his stead. While any person is attending any meeting pursuant to this subsection he shall be deemed to be a member of the Commission.

Subject to the provisions of this Act and of any regulations made thereunder, the Commission may regulate its procedure in such manner as it thinks fit.

There may from time to time be appointed as officers of the Public Service such officers as may be required for the purposes of this Act.

No member or officer of the Commission shall be personally liable for any liability of the Commission, or for any act done or omitted by the Commission or by any member or officer thereof in good faith in pursuance or intended pursuance of the powers and authority of the Commission.

There is hereby established in the Public Account a separate account to be called the Earthquake and War Damage Fund.

The War Damage Fund established under the War Damage Act, 1941, is hereby abolished.

All moneys standing to the credit of the War Damage Fund on the commencement of this Act shall, without further authority than this section, be transferred to and deemed part of the Earthquake and War Damage Fund.

There shall also from time to time be paid into the Fund—

All moneys payable into the Fund by any person, and all debts and other moneys for the time being owing to the Commission by any person, whether on account of premiums or otherwise, and whether they are accrued due or not, are hereby declared to be the property of the Crown and recoverable accordingly by the Commission as from debtors of the Crown.

All such moneys are hereby declared to be public moneys within the meaning of the Public Revenues Act, 1926.

There shall from time to time, without further appropriation than this section, be paid out of the Fund—

There shall also from time to time be paid out of the Fund, in accordance with the appropriation of Parliament, all salaries and allowances and other expenditure incurred in the administration of this Act.

If the moneys for the time being in the Fund are not sufficient to meet the lawful claims thereon, the Minister shall, without further appropriation than this section, but subject to the next succeeding subsection, advance to the Fund from the Consolidated Fund such sums as may be necessary to meet the deficiency.

If in the opinion of the Minister the whole or any part of any such deficiency cannot conveniently be met from the Consolidated Fund, the Minister shall borrow, on the security of and charged upon the public revenues of New Zealand, such sums of money as may in his opinion be necessary to meet the deficiency or that part of it, or to repay to the Consolidated Fund the whole or any part of any advances made under subsection one of this section.

The sums so borrowed shall bear interest at such rate as the Minister prescribes.

All moneys borrowed under the authority of this section shall be paid into the Earthquake and War Damage Fund.

This section shall be deemed to be an authorizing Act within the meaning of the New Zealand Loans Act, 1932, and the moneys hereby authorized to be borrowed shall be borrowed under and subject to the provisions of that Act accordingly.

All moneys advanced to the Fund under subsection one of this section or paid into the Fund under subsection four of this section and not repaid shall, from the date of the advance or payment, constitute a capital liability of the Fund to the Consolidated Fund.

Interest on the amount of the capital liability of the Fund under this section shall, without further authority than this section, be paid out of the Fund to the Consolidated Fund at such rate or rates and at such times as the Minister from time to time prescribes. Different rates may be prescribed in respect of different moneys advanced or paid to the Fund.

If the Minister is satisfied, at any time while the Fund has a capital liability under this section, that there are available in the Fund moneys in excess of the amounts reasonably required for the purposes of the Fund, he may direct that the whole or any part of the excess be transferred from the Fund to the Loans Redemption Account, and the amount so directed shall, without further authority than this section, be transferred accordingly, and be utilized for the redemption of such securities charged on the public revenues of New Zealand as the Minister may determine. All moneys transferred under this section shall be deemed to be repaid in reduction of the capital liability of the Fund to the Consolidated Fund.

Subject to the provisions of this Act and of any regulations made thereunder, where in respect of any period after the commencement of this Act any property is insured to any amount under any contract of fire insurance made in New Zealand with an insurance company after the commencement of this Act, the property shall at all times during that period be deemed to be insured under this Act to the same amount against earthquake damage and war damage.

In respect of the insurance of any property under this section the insurance company with which the property is insured against fire shall pay an earthquake and war damage premium in accordance with this Act at such time and in such manner as may be prescribed.

Upon the making of any such contract of fire insurance the earthquake and war damage premium at the rate then prescribed, computed in respect of the period of the contract of fire insurance, shall thereupon become a debt due by the insurance company to the Commission.

The amount of the earthquake and war damage premium for which any insurance company at any time becomes liable under this section in respect of any contract of fire insurance shall thereupon become a debt due by the insured person to the insurance company, and may be recovered by the company accordingly. If at any time before the debt is fully discharged any other person becomes an insured person under the contract of fire insurance the amount remaining unpaid shall thereupon become a debt due by him to the insurance company, without prejudice to the liability of any other person. Where two or more persons are liable for any amount under this subsection their liability shall be joint and several.

Subject to the provisions of any regulations made under this Act, the Commission may from time to time—

Where there is expressed or implied in any mortgage, lease, instrument, or document, whether executed before or after the commencement of this Act, any covenant, condition, or power relating to the insurance against loss or damage by fire of any property to which this section applies, then, subject to the provisions of any regulations made under this Act and to the provisions of any express agreement in that behalf, the covenant, condition, or power shall be deemed to be extended so as to apply, so far as it is applicable and with the necessary modifications, with respect to the insurance of the property against earthquake damage and war damage under this section.

On application made by any person having an insurable interest in any property the Commission may agree to insure that property under this Act for such period and to such amount and upon or subject to such conditions as the Commission thinks fit against earthquake damage and war damage or against earthquake damage only or against war damage only.

A contract may be made under this section (whether in respect of earthquake damage or war damage or both)—

Upon the making of a contract under this section a premium at the prescribed rate or, where no rate is prescribed, at such rate as the Commission thinks fit shall be payable to the Commission by the applicant.

Subject to the provisions of this Act and of any regulations made thereunder and of the contract of earthquake or war damage insurance (if any), if, during the period for which any property is insured under this Act against earthquake damage or war damage, the property or any part thereof is destroyed or damaged by earthquake damage or by war damage, as the case may be, the Commission shall be liable to make good (by payment or reinstatement or repair, at the option of the Commission) all such loss or damage to an amount not exceeding in respect of the property or any part thereof the amount to which the property or that part thereof is respectively so insured.

Subject to the provisions of any regulations made under this Act, any payments or expenditure for which the Commission may be liable under this section shall be made at such time or times as the Commission in any case thinks fit, being—

The insurance of any property against earthquake damage or against war damage, whether under section fourteen or under section fifteen of this Act, shall be subject to the provisions of this Act and of any regulations made thereunder.

Where on the occurrence to any property of any loss or damage against which it is insured under section fourteen or section fifteen of this Act, the property is also insured against that loss or damage under any contract or contracts made otherwise than under this Act, the insurance of the property under this Act (to the amount to which it is so insured) shall be deemed to be in respect of so much of that loss or damage as exceeds the sum of—

Notwithstanding anything to the contrary in any contract whereby any property is insured against any loss or damage otherwise than under this Act, where the property is or has at any time been also insured against that loss or damage under section fourteen or section fifteen of this Act the contract shall have effect in all respects as if the property were not and had never been insured under this Act.

On application made by any person engaged in the manufacture, storage, or transportation of explosives or munitions or other dangerous things required for war purposes or by any person entitled to any estate or interest in any premises or vehicle used for any such purpose, the Commission may agree to indemnify that person to such extent as it thinks fit against liability to pay damages (inclusive of costs) on account of the destruction or damage of any property of any other person or persons where that destruction or damage is the result of an accident happening during the period of the contract of indemnity and is sustained or caused by or through or in connection with such manufacture, storage, or transportation.

Upon the making of a contract under this section a premium at the prescribed rate or, where no rate is prescribed, at such rate as the Commission thinks fit shall be payable to the Commission by the applicant.

The Commission may from time to time, in respect of any liability of the Commission under this Act, effect reinsurances with any person carrying on business in or out of New Zealand.

For the purpose of obtaining any information that may be required by the Commission for the purposes of this Act the Commission, or any person authorized in writing in that behalf by the Commission, may from time to time—

Every person commits an offence against this section who—

Every person who aids, abets, counsels, or procures or is in any way knowingly concerned with the commission of an offence against this section shall be deemed to have committed an offence against this section.

Any offence against this section committed by a servant or agent in the course of his employment shall be deemed to have been also committed by his employer or principal.

Every person who commits an offence against this section shall be liable on summary conviction,—

Where any person (hereinafter referred to as the agent) in the course of his business negotiates, directly or indirectly (whether through a broker or otherwise), any contract of fire insurance between any insurance company as hereinbefore defined that is not carrying on business in New Zealand and any other person (hereinafter referred to as the insured person),—

The fact that any person issues any cover-note in respect of a contract of fire insurance or gives any information that fire insurance has been effected, or issues any receipt or other document acknowledging the receipt of a premium in respect of a contract of fire insurance, or receives any premiums, proposals, or requests for fire-insurance business shall, for the purposes of this section, be conclusive evidence that that person is engaged in the business of negotiating contracts of fire insurance.

The Minister shall within three months after the expiration of every financial year cause to be prepared a report on the operations of the Commission for that year.

The said report, together with statements of account to be prepared by the Commission in accordance with section fifty-seven of the Finance Act, 1932, shall be laid before Parliament within fourteen days after it has been received by the Minister if Parliament is then in session, and, if not, shall be laid before Parliament within fourteen days after the commencement of the next ensuing session.

The Commission is hereby declared to be exempt from the payment of land-tax and income-tax under the Land and Income Tax Act, 1923.

No stamp duty shall be payable on any statutory declaration or on any agreement, receipt, or other instrument made, given, or executed for any of the purposes of this Act.

The Governor-General may from time to time, by Order in Council, make all such regulations as may in his opinion be necessary or expedient for giving full effect to the provisions of this Act and for the due administration thereof.

Without limiting the general power hereinbefore conferred, it is hereby declared that regulations may be made under this section for all or any of the following purposes:—

No regulation made under this section shall be deemed to be invalid on the ground that it delegates to or confers on the Governor-General or the Commission or any other person or body any discretionary authority.

Any regulations under this section may be made so as to come into force on any date specified therein in that behalf, whether before or after the date of the making of the regulations.

All regulations made under this section shall be laid before Parliament within fourteen days after the making thereof if Parliament is then in session, and, if not, shall be laid before Parliament within fourteen days after the commencement of the next ensuing session.

The War Damage Act, 1941, and the War Damage Amendment Act, 1942, are hereby repealed.

The Earthquake Damage Emergency Regulations 1944 are hereby revoked.

All appointments, Orders in Council, regulations, insurances, contracts, claims, liabilities, and generally all acts of authority that originated under any of the provisions of the enactments hereby repealed or revoked, and are subsisting or in force on the commencement of this Act, shall enure for the purposes of this Act as fully and effectually as if they had originated under the corresponding provisions of this Act, and accordingly shall, where necessary, be deemed to have so originated.

All matters and proceedings commenced under any such enactment and pending or in progress on the commencement of this Act may be continued and completed under this Act.