Policyholders could get paid twice for liquefaction claims - insurers

Policyholders could get paid twice for liquefaction claims - insurers | Insurance Business

Policyholders could get paid twice for liquefaction claims - insurers
In documents filed to the High Court in Wellington, two Kiwi insurers stated that there is a risk claimants with properties damaged by liquefaction could get two insurance payouts.

Tower Insurance and IAG said claimants could get two payouts for increased liquefaction vulnerability (ILV) for the same claim  ̶  one from EQC and one from their insurer  ̶  should the commission opt to directly reimburse landowners, Fairfax Media reported. ILV covers for the reduced value of land due to increased vulnerability to flooding and liquefaction caused by earthquakes.

Want the latest insurance industry news first? Sign up for our completely free newsletter service now.

The insurers are seeking a declaration that EQC should reimburse them for liquefaction-related land repair, even without a deed of assignment that would transfer the policyholder’s EQC claims.

In January this year, the two insurers filed High Court proceedings against EQC over the calculations it used to determine ILV damage. The insurers said there were cases when they paid for land repairs or foundation work so repair and rebuild work could commence, assuming that they would be reimbursed by EQC. According to a report at Stuff.co.nz, many of the repairs occurred before EQC declared which properties it would cover for damage.

The next hearing date has yet to be scheduled.


Related stories:
Flooding and liquefaction EQC claims held by insurers - claimant
Two Kiwi insurers to take EQC to High Court