IAQ and EQC settle costs for Canterbury earthquake claims

The damage at the CTV building which collapsed during the Christchurch earthquakes. Photo / Mark Mitchell

Insurer giant IAG has finally agreed with EQC about the division of costs of claims for the Canterbury quakes.

But the insurance company which owns AMI, State and other brands is keeping mum about details of the quake payments.

A spokeswoman says they can't release the cost settlement.

IAG chief executive Craig Olsen said the settlement means costly and lengthy court proceedings have been avoided.

He said they can now move forward to help homeowners recover from natural disasters.

"Both parties can now move forward with certainty, and we look forward to continuing our collaborative efforts with EQC to further strengthen the critical insurance frameworks that underpin New Zealand's ability to recover from natural disasters."

It follows the announcement last month that owners of property damaged by a natural disaster will only have to deal with their insurer after June next year.

The Earthquake Commission agreed a deal allowing claims to be dealt with by private insurers.

The change, which will come into force during the second quarter of 2021, will aim to avoid the disastrous situation which followed the 2010 and 2011 Canterbury earthquakes in which there was double and sometimes triple handling of claims and assessments as consumers were bounced back and forth between the EQC and insurers.

Under the new partnership anyone with home insurance whose home or land is damaged in a natural disaster will only need to lodge one claim through their private insurer.