Deal struck to simplify Kaikoura claims

SH1 toward Kaikoura from the south is a wild ride over cracked seal and gaping holes. Photo / File

People affected by the Kaikoura earthquake will be breathing a sigh of relief today as the Earthquake Commission has struck a deal which will remove the need for properties to undergo two assessments.

Under the deal between the Earthquake Commission (EQC) and Insurance Council of New Zealand (ICNZ), insurers will act as EQC's agent.

As a result, EQC will not need to make its own assessment of houses in many cases.

A spokesman for Vero Insurance said the company will be able to "receive, assess, and setlle home and contents claims for earthquake damage from Vero customers, regardless of whether they are under or over cap."

EQC has a cap of $20,000 for contents and $100,000 for home damage.

EQC will still assess land damage as land is not covered by private insurance policies.

Vero executive general manager of claims, Jimmy Higgins, said the agreement would simplify and speed up the claims handling process for its customers.

"Vero is highly experienced in disaster management, and this new process will allow us to provide an end-to-end claims service to our customers," Higgins said.

"This streamlined approach to handling claims is one of the many learnings to come out of the Canterbury earthquakes, and we are committed to showing the difference this will make to our customers, knowing they only have to deal with us, and that we'll look after them."

The private companies will be reimbursed by EQC for their share of the insurance costs following the settlement of the claims.