The updated High Court list for earthquake cases involving insurance companies and EQC is available here. The claims against insurance companies and EQC continues to grow.
In Zurich Australian Insurance Ltd v BC398983 & anor [2013] NZCAS 560 the Court of Appeal allowed Zurich’s appeal from a High Court decision about earthquake damage to the Salisbury Park Apartments. Reinstatement would cost $25M. EQC had paid the statutory maximum of $6.8M. However, the insurance policy had a sum insured of $12.95M. The High Court decided that by virtue of the wording of the insurance policy the insured could recover $12.95M under the insurance policy in addition to the $6.8M from EQC. The Court of Appeal said that this interpretation of the insurance policy was wrong. Zurich’s liability under the insurance policy was net of EQC cover, so its liability was only $6.15M.
The Supreme Court has granted leave to Ridgecrest New Zealand Ltd to appeal the Court of Appeal decision in its claim against IAG New Zealand Ltd in this short decision. The case is about the ability of the insured to recover up to the sum insured for each earthquake event under the insurance policy notwithstanding that remedial work was not done.
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