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How we’re settling Kaikōura claims

EQC received more than 38,000 residential claims for damage caused by the 2016 Kaikōura earthquake, which was the second largest event in EQC's history after the Canterbury earthquakes.

The majority of claims lodged were for building damage only (71%), 10% for building and contents, 9% contents only and 10% land damage. Top locations for lodging claims were Christchurch, Wellington, North Canterbury and Marlborough.

EQC claims for damage arising from earthquakes ‘in and around’ Kaikōura between 14 December 2016 and 13 December 2017 were managed by EQC and private insurers working on EQC’s behalf. This shared approach to resolving claims was outlined in a Memorandum of Understanding and a subsequent Variation to the Memorandum of Understanding. 

As at 30 April 2019, 99% of EQC claims for the Kaikōura earthquake have been settled.  

Because of the small number of outstanding Kaikōura claims, management of most outstanding Kaikōura claims moves from private insurers back to EQC starting from 1 July 2019.

Memorandum of Understanding (MOU) for the Kaikōura earthquake

In December 2016 EQC signed a Memorandum of Understanding (MOU) for the Kaikōura earthquake with a number of insurance companies (AA Insurance, AMI, FMG (Farmers Mutual Group), IAG’s bank partners (ASB, BNZ, Westpac and The Cooperative Bank), Lantern, Lumley, Medical Assurance Society / Medical Insurance Society, NZI, QBE Insurance (Australia) Limited, State, Tower Insurance – Fintel, Tower Insurance Limited, Vero (including AMP, ANZ, and Warehouse Money policies underwritten by Vero), Youi NZ Pty Limited). As a result, participating insurers have been assessing and settling EQC home and contents claims for earthquake damage from their own customers, including those claims that are under the EQC cap.

Read EQC and insurance companies' original Memorandum of Understanding Relating to Kaikoura Earthquake Claims Management PDF (2MB), which covers EQC claims for damage arising from Kaikōura earthquake between 14 November 2016 and 13 December 2016.

Read our guide A simpler claims process for Kaikoura PDF (522KB) to find out more about how we’ve managed claims from the Kaikōura Earthquakes along with the private insurers. 

EQC-managed claims

EQC has been managing some claims from the Kaikōura earthquake directly. Private insurers don’t insure land damage so EQC is looking after all land claims. In addition, EQC has also been managing building and contents claims which are mainly from people who have an open claim from another natural disaster event (for example, 2013 Seddon earthquake or 2010-2011 Canterbury earthquakes).

Variation to MOU

In June 2017 EQC signed a variation to the original MOU with private insurers that extended the time period of the original MOU to include claims relating to earthquake damage arising from earthquakes centred in and around Kaikōura (including Scargill) through to and including 13 December 2017.

Read EQC and insurance companies’ Variation to MOU – Kaikoura Earthquake Claims Management PDF (618KB), which covers EQC claims for damage arising from earthquakes ‘in and around’ Kaikōura between 14 December 2016 and 13 December 2017.

The period within which claims for natural disaster damage arising from earthquakes centred in and around Kaikōura were covered by the Kaikōura MOU variation has now ended. This means any earthquakes after 13 December 2017, and any EQC claims, are not in the scope of this MOU. To find out more about how to make a claim for a subsequent event, visit our Kaikoura subsequent events page.

Previous claim information

Previous claim information (from an event before the Kaikōura earthquake) may be provided to the insurer where the information is considered relevant for the purpose of assessing and settling a Kaikōura claim. EQC provides this information to the insurer on the basis that they are acting as agent for EQC under the Kaikōura Memorandum of Understanding. EQC can provide certain information on previous claims to ensure that we are fulfilling the functions of the EQC Act, such as checking that EQC has not previously settled a claim for the same damage. Each request for prior claim information is assessed on a case by case basis to ensure that the provision of the information is relevant to the settlement of the Kaikōura claim.

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