IAG, EQC agree on claim division

CHRISTCHURCH: Insurer giant IAG has finally agreed with EQC about splitting the cost of claims for the Canterbury earthquakes.

But the insurance company which owns AMI, State and other brands is keeping silent about details of the quake payments. A spokeswoman said it could not release the cost settlement.

IAG chief executive Craig Olsen said the settlement meant costly and lengthy court proceedings had been avoided.

He said it could now move forward to help homeowners recover from natural disasters.

It follows the announcement last month that owners of property damaged by a natural disaster will only have to deal with their insurer after June next year.

The Earthquake Commission agreed a deal allowing claims to be dealt with by private insurers.

The change, which will come into force during the second quarter of 2021, will aim to avoid the disastrous situation which followed the 2010 and 2011 Canterbury earthquakes in which there was double and sometimes triple handling of claims and assessments as consumers were bounced back and forth between EQC and insurers.

Under the new partnership, anyone with home insurance whose home or land is damaged in a natural disaster will only need to lodge one claim through their private insurer. — The New Zealand Herald