Insurers Welcome Government's Proposal for Christchurch

Insurers Welcome Government's Proposal for Christchurch

The Insurance Council has today welcomed the government's proposal to help Christchurch homeowners whose homes and land were damaged or destroyed by the September 2010 and February 2011 earthquakes and subsequent aftershocks.

Insurers are generally pleased with the government's proposed options announced today for homeowner's with insurance and will continue to work with the government and home and property owners to reach satisfactory outcomes, Insurance Council Chief Executive, Chris Ryan said.

Chris Ryan said in formulating a workable solution for the people of Christchurch who the offers apply to the government had listened and this was reflected in the proposal announced today.

"This gives people certainty and choice and recognises insurers' ability to settle claims in accordance with the terms and conditions of individual insurance contracts.

"The government has set in place a process as to how individual home and property owners make their decisions and it will then be over to individuals and their insurers to reach agreement."

Chris Ryan said in light of ongoing seismic activity in Canterbury, insurers will continue to work closely and constructively with the government as the rebuild of Christchurch progressed.

"The positive that we can take out of today's announcement is that there are now options on the table for people to consider and this removes the lingering doubt that many have faced in the past weeks and months due to the complexity and difficulty the government and insurers faced in reaching a workable and affordable solution. People now have a degree of choice and some certainty and that's a good thing."

Chris Ryan said the insurance industry expects to pay at least $NZ10 billion into the Canterbury economy and the rebuilding of Canterbury and Christchurch generally.

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