Earthquake: Council of States rejects government imposed liability requirement for property owners

The idea of a mandatory nationwide earthquake insurance system has repeatedly appeared on the political agenda for several years. Based on extensive analyses and working groups involving insurers and stakeholders, this idea has always been clearly rejected. The Federal Council had also opposed it. However, due to a motion calling for Swiss earthquake insurance by means of a contingent obligation system, it was required to prepare a proposal in the form of a federal decree. This proposal included an amendment to the Federal Constitution: in the event of a major earthquake, all homeowners in Switzerland would have been required to pay a one-time premium. This premium could have reached a maximum of 0.7 percent of the insured value of the building, along with a deductible of 0.5 percent of the insured value, but at least 25,000 francs. This so-called contingent obligation would have been recorded in the land register.

The Council of States has now decided not to consider this federal decree. HEV Switzerland welcomes this consistent decision. Such an obligation lacks the necessary support from the affected property owners and from the cantons. Competence in matters of building insurance clearly belongs to the cantons. If there is truly a need for a national solution for strong earthquakes, which HEV Switzerland strongly doubts, then it would undoubtedly be the cantons that would have to design such a solution. They must assume their responsibility. The existing allocation of authority in favor of the cantons must be maintained.

In addition, there are already various voluntary insurance products on the Swiss market that provide protection against earthquake risks. Anyone who wishes to insure themselves can already do so today.

A mandatory nationwide solution is not necessary, and certainly not preventive special treatment of the natural hazard of earthquakes through state enforced joint liability for property owners.

HEV Switzerland is pleased that the Council of States has recognized the problems of this proposal and will work to ensure that the National Council also rejects this misguided initiative.


Contact:
Anita Stecher
Head of Marketing
Communications and PR
Telephone: 044 254 90 26
E-mail: anita.stecher@hev-schweiz.ch

Editor's note: Image rights belong to the respective publisher.