Insurance company IAG and EQC settle costs for Christchurch quake claims

Photo: RNZ / Conan Young
Photo: RNZ / Conan Young
Insurance giant IAG has finally agreed with the Earthquake Commission about the division of costs of claims for the Christchurch quakes.

But the insurer which owns AMI, State and other brands is keeping quiet about details of the quake payments.

A spokeswoman says it can't release the cost settlement.

IAG chief executive Craig Olsen said the settlement means costly and lengthy court proceedings have been avoided.

He said it can now move forward to help homeowners recover from natural disasters.

"Both parties can now move forward with certainty, and we look forward to continuing our collaborative efforts with EQC to further strengthen the critical insurance frameworks that underpin New Zealand's ability to recover from natural disasters."

It follows the announcement last month that owners of property damaged by a natural disaster will only have to deal with their insurer after June next year. EQC agreed a deal allowing claims to be dealt with by private insurers.

The change, which will come into force during the second quarter of 2021, will aim to avoid the disastrous situation which followed the 2010 and 2011 earthquakes, in which there were double - and sometimes triple - handling of claims and assessments as consumers were bounced back and forth between EQC and insurers.

Under the new partnership, anyone with home insurance whose home or land is damaged in a natural disaster will only need to lodge one claim through their private insurer.

 

drivesouth-pow-family_0.png

 

 

Advertisement

postanote_header_620_x_80.png

postanote_620_x_25.jpg

Local trusted journalism matters - now more than ever

As the Covid-19 pandemic brings the world into uncharted waters, Star Media journalists and photographers continue to report local stories that matter everyday - yours.

For more than 152 years our journalists have provided Cantabrians with local news that can be trusted. It’s more important now than ever to keep Cantabrians connected.

As our advertising has fallen during the pandemic, support from you our reader is crucial.

You can help us continue to provide local news you can trust simply by becoming a supporter.

Become a Supporter