Private insurers to handle EQC November quake claims

THE PRESS, 13 DEC 2016

Private insurers will take over Kaikoura earthquake claims from the Earthquake Commission (EQC).

EQC has signed an agreement with insurance companies following discussions on how to simplify the claims process for the November earthquakes.

The deal will see EQC pay back insurers within five days for their under-cap share of settlements ($20,000 for contents and $100,000 for homes). EQC will also pay the insurers for their handling expenses.

The agreement lists the following insurers as agents for EQC claims: AA Insurance, Farmers' Mutual Group & FMG Insurance, IAG New Zealand (State, AMI, Lumley, NZI and Lantern brands), Medical Insurance Society Limited (MAS brand) QBE Insurance (Australia), Tower New Zealand, Vero Insurance New Zealand, and Youi NZ.

Insurance company staff will have to follow the EQC Act and EQC's policies, and will be given training to do so.

According to The Press article, under the agreement insurers like IAG and Vero would act as EQC's agent and receive, assess, and settle home and contents claims for earthquake damage, regardless of whether they were under or over EQC's cap of $20,000 (plus GST) for contents and $100,000 (plus GST) for home damage.

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Melanie Tobeck