At last - Rena compensation money

A compensation fund has been established for people and businesses affected by Rena.

Rena's owners and insurers have begun a compensation process by establishing a fund of £13,722,018 ($27 million).

The fund is to be used to satisfy claims for loss, damage, delay causing loss, or any infringement of rights resulting from the grounding on Astrolabe Reef in October last year.

The Limitation Fund had been established as a source of finance against which people can lodge claims for compensation.

Cargo on board the Rena was carried under English law and jurisdiction, which is why the fund has been established in the UK.

However, because the grounding happened in New Zealand waters, there will also be New Zealand proceedings and a similar fund expected to be established in the "near future", said Hugo Shanahan, spokesman for Rena's owners and insurers.

This would offer claimants compensation with a liability limit of $11,496,000, which would also be available to compensate local claims for loss, damage, delay causing loss or any infringement of rights resulting from the grounding. And that any affected party can lodge a claim against either fund, Mr Shanahan said.

The owners and insurers of Rena have begun advertising a legal notice declaring their General Limitation Decree. This will be advertised in New Zealand, UK, Indonesia and Australia.

Mr Shanahan said the process of claiming compensation was detailed in the legal notices and claimants were advised to seek legal advice on their participation.

Mr Shanahan said the owners and insurers "presently intend to establish a similar fund in New Zealand in the near future".

"One of the main reasons for the intention to establish a New Zealand fund in due course is to facilitate compensation for small claimants without them having to deal with the expense and complexity of filing in London."

John Owen, senior claims manager for insurer The Swedish Club, said he and the owners were pleased to put in place procedures for the range of affected parties to seek compensation for legitimate claims.

Captain Owen said: "We have always been committed to putting things right, including meeting all legal obligations under New Zealand and international law."