Insurance cover and Government funding assistance relating to the rebuild or repair of damaged below ground and above ground essential infrastructure
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Insured essential infrastructure assets
The Guide to the National CDEM Plan states that Government assistance will not normally be available for damaged essential infrastructure assets that receive a subsidy from any other source.
The maximum Government contribution for eligible damaged essential infrastructure is 60 percent of the rebuild or repair cost.
Below ground essential infrastructure
A local authority’s 40 percent funding contribution is generally made up of an insurance settlement, with the local authority funding any shortfall.
If the settlement is greater than 40 percent of the rebuild or repair cost, the Government contribution will be limited to the shortfall up to the maximum of 60 percent.
For below ground assets and stop banks etc. that are insured up to a maximum of 40 percent of the cost to repair or rebuild, the cost of the work is eligible for the 60 percent Government funding contribution.
Above ground essential infrastructure
In order to receive a Government contribution, the asset must have been comprehensively insured (if insurance was available) or the local authority reasonably expected the insurance cover to be comprehensive, or where insurance cover has been limited by an insurance company to provide 40 percent of the cost of the work.
The Government will make a 60 percent funding contribution towards the shortfall between an insurance cash settlement and the cost of the repair or rebuilding of any comprehensively insured eligible damaged asset.
An eligible uninsured above ground asset can still receive Government financial assistance up to 60 percent of the cost of the work, if a local authority can clearly show that it was unable to obtain insurance for any reason.