Historic $320 million insurance settlement reached
The Canterbury District Health Board (CDHB) has reached a historic $320 million settlement with insurance companies.
The quake settlement is thought to be one of the largest in New Zealand to date, rivaling a $320 million settlement earlier this year by Housing NZ.
The district health board identified more than $500 million in quake-related repairs to its buildings and infrastructure since the September 2010 quake, according to a CDHB press release.
The district health board sustained damage to more than 200 buildings and 12,000 of 16,000 rooms in CDHB facilities.
“Clearly there’s a gap between our insurance payout of $320 million and the $500 million price tag for repairs,” CDHB chair Bruce Matheson says in a statement.
The $320 million payout was the full amount available under the policy.
“While delighted to have received the full amount, it’s not going to allow us to fix everything,” Mr Matheson says.
“We have already begun a prioritisation process to ensure these funds are invested where they are most needed,” he says.
Chapman Tripp were the legal advisers and Marsh New Zealand were the insurance brokers for the district health board.
Nearly $6.3 billion of Canterbury earthquake commercial claims have been settled, according to the Insurance Council of New Zealand.