ILV litigation

On 20 January 2017, IAG New Zealand Limited and Tower Insurance Limited commenced High Court litigation against EQC in respect of our policy for settling ‘Increased Vulnerability to Liquefaction (ILV) damage.

EQC is still considering the implications of the Tower and IAG litigation for customers whose properties are listed in a schedule to the claim filed in Court. EQC proactively sought confirmation from the Courts through a declaratory judgment that confirmed ILV was damage covered by the EQC Act and confirmed the Diminution of Value (DoV) was an appropriate settlement method in certain circumstances.

To date, EQC has settled 6540 ILV land damage claims for Canterbury customers, and our records show that there are 1750 claims outstanding.

While EQC is reviewing its response to the litigation, we can reassure our customers in Canterbury who have already received an EQC settlement for ILV land damage that your settlement will stand.

In respect of our customers in Canterbury who are waiting to be settled for their ILV land damage, we intend to continue to settle your claim in accordance with our current ILV settlement policy. There will be a small number of cases where private insurers have notified EQC that they have completed or paid for works that EQC considers to have repaired a customer’s land damage.

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