Cost of Government Southern Response proactive package released
Media Release
15 JUNE 2021
The Government has announced the proactive package for some Southern Response policyholders could cost $313 million if all those eligible apply.
In December, the Minister Responsible for the Earthquake Commission, David Clark announced a proactive package for SRES claimants who settled their claims before October 2014.
It trailed the judgment from the Court of Appeal in relation to Mr and Mrs Dodds and offers a top-up payment to customers in a similar situation.
The package will affect some policyholders who are potentially part of the Ross Class Action, Southern Response has applied to the court for confirmation that it can communicate with those policyholders about the package. This application is still making its way through the court.
"Southern Response has been working with its actuaries to estimate payments likely to be made under the approved package. We are now in a position to release the cost estimate of the full package,” David Clark said.
“Southern Response is preparing an extensive advertising and direct contact campaign to reach out to as many people as possible, if court approval is given.”
“It’s entirely possible in the last 10 years, some of those who qualify will have moved overseas, changed their names due to marriage, or even passed on. However, Southern Response continues finding up-to-date contact details for all who could be eligible.
Based on actuarial advice, Southern Response is including a cost of $242.5 million in its accounts, reflecting an estimate of around 75 percent take-up of the package.
“Today I am also releasing the papers, via the Treasury website, establishing the proactive package,” David Clark said.
Media coverage
Southern Response settlement offer could cost Government $313 million
A settlement for Southern Response earthquake insurance policyholders could cost the Government $313 million if all of those eligible apply.
The Government-owned earthquake insurance settlement company was responsible for settling claims by AMI policyholders after the 2010 and 2011 Canterbury earthquakes.
In December, Minister Responsible for the Earthquake Commission David Clark announced a proactive package for Southern Response Earthquake claimants who settled their claims before October 2014.
This followed a judgment from the Court of Appeal in September 2020, upholding an earlier judgment by the High Court, in relation to Karl and Alison Dodds.
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Southern Response earthquake claims settlement package estimated at $313m