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EQC pay-outs now total over $500m
23 December 2010
"As of today, EQC has paid out $533.64 million dollars to claimants with residential property damaged by the Canterbury earthquake," the chief executive of the Earthquake Commission, Ian Simpson, said today.
"This is a significant portion of the current estimated cost to us of $2.75 billion to $3.5 billion. EQC is only liable for the first $1.5 billion of the cost of the claims after which our reinsurance takes effect. Reinsurance covers the costs between $1.5 billion and $4 billion.
"On the above basis, this would leave around $4.5 billion in the Natural Disaster Fund plus reinsurance support in place for an additional $2.5 billion which would leave a good buffer in place for future natural disaster events.
"Claims from the aftershocks of 19 October and 14 November continue to trickle in.
"As of today, we have 161,473 claims including 2,068 from the October aftershock and 1,930 from the November one.
"As we have said before, the total number of claims will reduce as we sort through them and weed out duplicates and the like. There are likely to be numerous place marker claims, which means claims lodged where no obvious damage exists but could be found on inspections and assessments after the deadline.
"Going into Christmas, we feel pleased with our progress, although we acknowledge that there are still a large number of claimants we have yet to contact to begin the assessment process.
"As of today, we have settled 25,642 claims, completed assessments for a further 19,967, and begun assessments for another 24,760. This total of 70,369 is over 40 percent of all claims lodged.
"We have made 44,272 payments for building claims at a cost of $472.41 million, 31,271 payments for contents at a cost of $61.20 million, and 17 minor land claim payments at a cost of $19,103. This is a total of 75,560. The payments are often part-payments of an overall claim i.e. before a claim is finally settled.
"We expect little slow-down over the holiday period as we work through. We will have 225 loss adjusters and estimators plus support staff working over the Christmas and New Year period. They will be working the five days from Monday 27 December to Friday 31 December, and then back to six days a week from Monday 3 January.
"Call centres will remain staffed 24 hours a day and seven days a week right through the period. Payments and other EQC staff will be working through as well.
"We will work on claims of those we know are at home during the holiday period and from Monday 17 January will resume our normal suburb-by-suburb assessment process. If you are on holiday between now and 16 January you will not be affected i.e. you will not lose your place in the queue," Mr Simpson concluded.
END
Contact:
Jo Martin Communications Adviser
Phone (029) 978-6430
Email info@eqc.govt.nz