News item | 06-10-2023 | 15:45
The handling of earthquake damage becomes milder, more humane and easier. The starting point for the new method of claims handling is actual repair, without hassle. Residents with damage to their homes are given the opportunity to have all damage that could be mining damage, such as cracks in walls, repaired in one go without a causality investigation. This applies up to an amount of € 60,000 per address.
In addition, the fixed one-off compensation (VES) will be increased to € 10,000. This compensation is especially attractive for people with relatively smaller damages and can be paid out quickly. The plans also provide for how to deal with repeat damage. State Secretary Hans Vijlbrief (Mining) announced this today.
Milder, more human and easier
The new working method has been developed together with the Institute for Mining Damage Groningen (IMG). It puts an end to the situation in which residents sometimes had to argue for years about the cause of individual damage, while the condition of their home continued to deteriorate pending the outcome of objection or appeal procedures, or due to new earthquakes. Complicated reports are also no longer necessary describing the cause of damage per crack.
State Secretary Vijlbrief: “With actual repairs we remove an important part of the sources of dissatisfaction among residents about the claims handling process. In addition, we improve the quality of the housing stock, the living comfort of streets and neighborhoods, and the quality of life in Groningen and North Drenthe. That is the basis for further social and economic recovery of the earthquake area.”
Actual recovery
Residents can have damage up to €60,000 per address repaired without a causality test with their own contractor and have the invoice sent to the IMG or use a contractor hired by the IMG. In the latter case, the so-called Recovery in Kind, residents are completely unburdened.
The resident will be given the opportunity to have this actual repair carried out for a period yet to be determined, such as five years. If new mining damage occurs during this period, such as cracks in walls, these will also be included in the actual repair. The IMG will then inspect this damage and the resident can send the invoices to the IMG, or use the IMG contractor again.
Fixed one-off fee
Since November 2021, residents with damage can also opt for a fixed one-off compensation (VES). Residents who choose this will receive a fixed amount of money. To date, this was an amount of €5,000. This amount will be increased so that this VES becomes attractive to more people. The IMG will therefore double the VES to € 10,000. This applies to the entire area where the IMG handles damage.
Anyone who has received a claim amount lower than €10,000 in the past can still have this amount supplemented up to €10,000. The IMG will offer these residents the opportunity to receive a so-called Additional Fixed Allowance (the ‘AVV’) up to this amount. This compensation will be available to anyone who has previously received a fixed compensation of €5,000, and to anyone who has received a claim amount lower than €10,000.
Customization remains possible
Residents can also continue to opt for financial compensation instead of repairs by a contractor. The existing custom recording remains available for this group. Part of this is that a damage expert applies the legal presumption of proof for each damage to establish a relationship with gas extraction. All causal damages will be compensated. Non-causal damage will not be reimbursed.
New and returned damage
Unfortunately, stopping gas extraction does not mean that earthquakes will no longer occur. Even if all damage in a home is addressed at once, damage can return or new damage can occur. If damage returns or new damage occurs after a new significant earthquake – or due to indirect effects of deep subsidence – it will also be handled milder, more humanely and more easily. In the event of a new earthquake, the strength of the earthquake is used as a guideline for the area demarcation. Residents with damage then have the option to again opt for actual repair (up to €60,000 without causality test) or the existing customized procedure with causality research. The IMG is also working on a fixed repeat fee.
Nuisance compensation
Residents will also receive, as advised by the parliamentary inquiry committee, additional nuisance compensation precisely because new damage can have a major impact on people. In December it will be known how high that compensation will be and what the effect will look like.
When will the new working method come into effect?
In December, all residents who have a damage report will be presented with the option to have their damage processed further according to the new method of actual repair. From the second quarter of 2024, all new options will be available to everyone, including people who have not yet reported damage.