Government passes Kaikoura quake baton to private insurers

The Earthquake Commission (EQC) has passed the baton to private insurers to deal with the claims for the Kaikoura earthquake.

EQC has signed an agreement that will see all private insurers receive, assess and settle home and contents claims arising from the November 14 quake.  

That includes claims under EQC’s $100,000 cap.

EQC will assess land damage as land is not covered by private insurance policies.

Acting Civil Defence Minister Gerry Brownlee says the intention of the agreement is to reduce the double handling of claims and to speed up settlements for earthquake-affected customers.

“It’s a simplified approach that works in the best interests of customers and I’m pleased that EQC and private insurers have been able to work through the details of this agreement following the earthquake.”

He insists this approach won’t change customers’ entitlements under their existing insurance policies or under the EQC Act.

“Insurance assessors will be trained in the specific requirements of the act and, under the agreement, EQC will have the responsibility for monitoring, assessing and reporting on the new process.”

Those who have already lodged a claim with EQC are not required to do anything and customers will still be able to request a review where they disagree with a proposed settlement, he says.

“This new and simplified approach recognises we listened to some of the issues raised by customers in the wake of the Canterbury earthquake sequence.”

Vero executive general manager of claims Jimmy Higgins has welcomed the decision, saying it will simplify and speed up the claims handling process for its customers.

“This streamlined approach to handling claims is one of the many lessons to come out of the Canterbury earthquakes, and we are committed to showing the difference this will make to our customers, knowing they only have to deal with us, and that we’ll look after them.”