Insurers waive terrorism exclusions

Insurers are waiving the terrorism exclusions in their house, car, contents and commercial building policies for damage caused in the Christchurch shootings.

AA Insurance says it will also review whether to remove the terrorism exclusion clauses from its policies.

AA Insurance’s policies, like those of rivals State, Vero, Tower and AMI, contain clauses which allow it to decline any claim for damage to property caused in acts of terrorism.

But chief executive Chris Curtin said in light of the events in Christchurch on Friday the company would review its policy exclusions.

Curtin said AA Insurance would accept claims for damage caused by the Christchurch shootings.

‘‘While our policies exclude acts of terrorism, AA Insurance will be providing cover for claims made following the attack in Christchurch on Friday,’’ Curtin said.

Tower also said it would not use its terrorism clauses to refuse any claims for damage caused during the shootings.

‘‘We have received a small number of claims, all of which have been accepted. Customers who may need to make a claim can be assured that we are here to help them, spokesman Nicholas Meseldzija said.

IAG, which owns State, AMI and NZI, also said it would waive the terrorism exclusion in its policies for any claims relating to the Christchurch attack.

‘‘We’re doing this because it’s the right thing to do in these circumstances; we’re here to support our customers and community,’’ spokeswoman Jess Etheridge said.

‘‘We continue to review our policies. We are working closely with the Government and the New Zealand Red Cross to make sure we’re providing necessary support in the community.’’

The terrorism clauses entered New Zealand house, contents and car policies, as well as commercial building insurance through contracts with reinsurance companies.

Reinsurers are giant foreign companies that sell insurance that pays out insurers if an event is too big for them to handle alone, like major earthquakes.