Peter Woods / Lisa Taylor
26 June 2017
If you are in any doubt about your claim it is recommended you seek legal advice.
Limitation Period – what is it?
- An absolute defence
- Six years from when?
EQC’s position at August 2016
EQC will approach the six-year period for all claims as running:
- Where an EQC claim has been settled, from the date EQC settled that claim;
- Where an EQC claim has not yet been settled, from the date when EQC settles or declines that claim; or
- Where a claim is declined, from the date that EQC declines the claim.
Defining “Settlement Date”
For “settled” claims, EQC will calculate the limitation date from its settlement date which is:
Claims “settled” by payment:
- Starts from the date EQC makes payment in “settlement” of your claim
- Where EQC has made one or more “top-up” payments, starts from the most recent payment
- If no payment is made because the “settlement” due is less than the excess amount, starts from when EQC tells the customer
Claims “settled” by repair under CHRP:
- Starts from the date of practical completion
- If there have been further repairs after the date of practical completion, starts from when those further repairs were completed
Limitation Period — Our view
Claims that are still undecided:
- Not yet “settled”, and has not been declined, starts from when the claim is “settled” or declined
Claims that have or will be declined:
- Starts from the date EQC notifies its decision
Limitation Period — Insurers position
- IAG (State, AMI, NZI, Lumley (?)) — 30 June 2018 *
- Southern Response — 4 September 2018 *
“The six year limitation period to begin from the time the claim was or is settled or rejected, rather than from the date of the original earthquake event”. — Tower *
- Other insurers: AA, FMG, Vero, MAS - 4 September 2017 *
* BUT GET IT CONFIRMED (see Resources page for template letters)
Anthony Harper’s letter to ICNZ seeking its position — ICNZ - advised it would be 4 September 2017, but talk to Insurer
What should you do?
- IAG, SRES, Tower — get it confirmed
- AA, FMG, Vero, MAS (and others) — Ask for deferment (see Resources page for template letters)
- Failing agreed deferment, then sue