MEDIA RELEASE

For immediate release: 30 August 2011

EQC reassures claimants over revised liability

The Earthquake Commission’s (EQC) Chief Executive Ian Simpson has reassured claimants from the Canterbury earthquakes that their claims will be settled in full.

The Government today announced that EQC’s liability to the earthquakes has increased by $4 billion to about $7 billion based on an actuarial valuation after new data became available following actual field assessments.

Mr Simpson says while the scale of residential damage is worse than originally thought, EQC will meet all its commitments.

“It is business as usual for EQC.”

“This report will not have an impact on EQC’s claimants. We will continue to pay out for building, land and contents claims and our full assessment programme will progress with urgency.”

“EQC has already paid out more than $1.4 billion in claims since September, amounting to almost $4 million a day and this will not stop,” Mr Simpson said.

“There was about $6 billion in the Natural Disaster Fund prior to the 4 September earthquake and with the government guarantee underwriting any shortfall, all claims will be settled.”

Canterbury is not the only region EQC has been working in over the last year with claims coming in from slips and storm damage throughout the country and Mr Simpson also moved to give some guarantees for the rest of the New Zealand and for any future events.

“Earlier this year we confirmed reinsurance for the next year. Any future events will be covered.”

ENDS

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