Limitation Period

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 *
  • Tower:
“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?