Southern Response to transfer remaining claims to EQC

Southern Response to transfer remaining claims to EQC | Insurance Business New Zealand

Southern Response to transfer remaining claims to EQC

Controversial earthquake insurer Southern Response has confirmed that it will transfer its remaining open claims to the Earthquake Commission (EQC) by the end of the year.

EQC Minister Grant Robertson said it only makes sense for them to take on the controversial earthquake insurer’s responsibility for processing the remaining claims as it slowly winds down until its permanent closure.

“As claim numbers reduce, it no longer makes sense for the Crown to have two organisations processing the remaining Canterbury claims,” Robertson said.

“Since the Crown took over AMI’s claims, Southern Response has received 48,600 claims, including 8,220 over-cap claims. At the end of this year we expect there to be about 300 claims still outstanding. We are at a point where it’s financially prudent to combine the management of claims under one Crown organisation.”

Read more: Southern Response plans to shut down by the end of the year

Southern Response is still expected to ensure that the claims are settled in accordance with the customers’ entitlements, as well as dealing with its ongoing legal matters – including the Dodds v Southern Response case and the Ross v Southern Response class action.

“Resolving the remaining Canterbury earthquake claims as quickly as possible is a priority for the government, so people can move on with their lives,” Robertson said.

“I want to assure people who still have claims with Southern Response that the transition of those claims to EQC will be as smooth as possible. EQC and Southern Response have been working together for some time in the lead up to the handover to ensure as little disruption as possible for claimants.”