27 June 2011

Insurance Council clarifies the process for claims within the Red Zone

The Insurance Council says insured people in the Red Zone should talk directly to their insurer or insurance broker when making a claim and if necessary take professional advice.

Some people have indicated they are unclear about the response from their insurer on payments for their properties in the Red Zone.

The Insurance Council says that each insurer has a different policy with their customers. There is no industry position on this complex situation; it will be between the insured person and their insurer only.

All enquiries should go to your insurance company or broker. The Insurance Council of New Zealand (ICNZ) has no input into the content of policies or the application of them.

People have two options. Option One sees people get a full payout for land and property from the government. Option Two sees people get a full payout for land from the government and all rights under their current insurance policy from their own insurer.

ICNZ encourages people to take legal or professional advice on this very important matter if they see fit and reminds people there is plenty of time before they need to make up their minds on this very important issue.

People have until March 2012 to make a decision.

The insurance industry expects to pay at least $NZ10 billion into the Canterbury economy and the rebuilding of Canterbury and Christchurch generally.

ENDS

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