Insurance Law 660 x 300 v2

22 June 2021

Update for Southern Response Claimants

Government announces $300 million compensation package

 

In 2020 the Court of Appeal ruled in Southern Response Earthquake Services v Dodds [2020] NZCA 395 that Southern Response (SR) had engaged in misleading and deceptive conduct when undertaking insurance settlements prior to October 2014.  SR provided claimants with one copy of a Detailed Repair Analyses (DRA), which covered scoping and estimated repairs for a claimant’s property. However, prior to October 2014 SR privately held a more extensive version of each claimant’s DRA which contained further costs that claimants were entitled to.

 

Following the Court of Appeal’s decision, the Government began preparing a compensation package for claimants who were affected by SR’s conduct.

 

On 15 June 2021, the Government announced the compensation package for affected claimants could total up to $313 million if every eligible policyholder applied for compensation. A policyholder is eligible if they are a SR claimant who settled their claim before the 1 October 2014.

 

The next step following this announcement will be rolling compensation to affected claimants. While the government have not provided a start date for the rollout, it is a positive and proactive step in this process.

 

Please contact Jessica Manson or Sam McLean at Saunders if we can be of any assistance with your SR claim, or any other insurance matters.

 

Contact Details for Jessica

Direct Dial: +64 3 265 0318
Mobile: 027 585 4533
Email: jessica.manson@saunders.co.nz
 

Contact Details for Sam

DD:      +64 3 266 0818
Mobile: 027 629 2111
E-mail: Sam.Mclean@saunders.co.nz