Insurance boss loses job claim

An insurance company chief executive who was sacked after last year’s Kaikoura earthquake has had his claim of unjustified dismissal rejected by the Employment Relations Authority (ERA).

Eugene Elisara led Allianz in New Zealand until this year.

After the Christchurch earthquakes of 2010 and 2011, Allianz introduced new property underwriting rules for Canterbury and Wellington. New policies in those areas had to meet strict criteria.

But when the insurer was hit with a $32 million loss due to damage to Wellington property caught up in the November earthquake, it was found that the underwriting instructions had not been complied with.

Allianz said Elisara’s failure to ensure the underwriting instruction was followed was a serious breach of his obligations.

Elisara, for his part, said the disciplinary investigation and process was unfair because Allianz had not put all the allegations to him to ensure he was aware of their substance, nature and weight.

He said it did not allow him enough of an opportunity to bring a support person or representation to the disciplinary meetings, did not give him the opportunity to respond to evidence and did not provide a preliminary decision.

He claimed the decision was pre-determined.

ERA member Vicki Campbell ruled that the dismissal was substantively justified and within the range of reasonable responses Allianz could take.

She said he was responsible for a substantial breach of his obligations as chief executive, which caused a significant loss to Allianz.