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  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.
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