The Government has approved a package to be offered to eligible policyholders who settled with Southern Response prior to October 2014, Minister Responsible for the Earthquake Commission David Clark announced today.
“The proactive package offers a top-up payment to customers in a situation similar to Mr and Mrs Dodds, who recently won their case for further payments. Payments may include certain professional fees, a contribution to legal fees, unpaid contingencies, and interest. The package’s implementation will be overseen by an independent oversight committee,” Minister Clark said.
“The roll out of this package is intended to address the inequity of those who settled their claims prior to October 2014 compared to those who settled later.
“I acknowledge the lengthy time the ongoing court action is taking and the stress this causes claimants.”
As the package will affect some policyholders that are potentially part of a current court case known as the Ross Class Action, Southern Response is today applying to the court for confirmation that it can communicate with those policyholders about the package.
“I appreciate that individual claimants will want to get this matter sorted as promptly as possible. This package offers a way of resolving the issue without lengthy and costly legal action,” said Mr Clark.
“The court cases to date have been helpful to gain clarity on how to fairly apply the findings to policy holders in a similar situation and have informed the principles of this package.”
The members of the Independent Oversight Committee will be:
- David Ayers (Chair)
- Fiona Mules
- Nina Khouri
- Sandra Manderson
“I want to thank the members for agreeing to be part of the committee who will help ensure it’s a fair and transparent process that everyone can trust,” Mr Clark said.