Legal Opinion Says Insurers Have A Case To Answer
new-zealand-labour-party
Mon Apr 23 2012 12:00:00 GMT+1200 (New Zealand Standard Time)
Legal Opinion Says Insurers Have A Case To Answer
Monday, 23 April 2012, 12:14 pm
Press Release: New Zealand Labour Party
Lianne Dalziel
Earthquake Recovery Spokesperson
23 April 2012 Media Statement
Legal Opinion Says Insurers Have A Case To Answer
A legal opinion released today raises serious questions about the validity of the actions of some insurers in dealing with claims from red zoned Christchurch residents, says Labour’s Earthquake Recovery spokesperson Lianne Dalziel.
“This opinion, from Dr Duncan Webb, a partner at the Christchurch based law firm Lane Neave, says insurers cannot get away with offering just the repair cost to red zoned owners.”
Lianne Dalziel says that she agrees with the opinion. It notes that the proper approach for insurers is to accept that properties in the red zone are constructive total losses, regardless of the extent of actual damage which has occurred to the house, on the basis that the houses are no longer able to be occupied.
“I received this opinion just days before the Government announced it was extending the time residents have to either accept or decline the red zone offer, a decision which relies on accurate information from insurers. I forwarded it to the Minister straight away.
“These people have not had all the facts and haven’t been able to make informed decisions about their futures. They have been receiving mixed messages from insurers and many are still unsure which government option is best for them,” Lianne Dalziel said.
“The opinion also raises questions about the EQC cash settlement process for the land. This matters because, if a red zone resident takes option one then the government pockets the difference of what the insurer gives them for the building and what EQC gives for the land.
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“This needs clarity and the only way to achieve that is through the court.
“The government was more than happy to support the insurers to seek a declaratory judgement from the court against EQC in relation to the reinstatement of the insurance policies after a separate event, but has not offered the same support to residents.
“The loss of the court case has cost EQC millions and has caused much anguish and uncertainty for residents as EQC revisits thousands of claims and allocates the losses between the different events.
“Gerry Brownlee says the recovery hasn’t stalled, but he should talk to the people who are still waiting for their over-cap payment, who have now been told that they might not get it, because of the apportionment exercise they are now undertaking.
“I am not saying that this opinion is black and white. I am saying that there is a case to answer,” Lianne Dalziel said.
“If the government sought a declaratory judgement, red zone residents whose houses were not as badly damaged as others might actually have a real chance to reach a fair settlement,” Lianne Dalziel said.
Please find the legal opinion attached:
Lane_Neave_Legal_Opinion.pdf
ENDS
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