Insurance payouts can be limited because of there are the case of EQC
In accordance with the outcome of a court case over Earthquake Commission cover, the insurance troubles of more than 10,000 Canterbury homeowners may be bad .Therefore, three High Court judges will decide how often EQC’s $100,000 cap for each insured household in the damage of earthquakes.
The Insurance Council predicts that the outcome of the case may affect at least 10,000 homeowners. EQC tells that the $100,000 cap is reduced by the amount of any claim until the householder renews or takes out new fire insurance, or until EQC starts to pay for an earlier claim.
David Goddard as the lawyer for some of the insurance parties, which has involved in the case told in court in Wellington yesterday that on EQC’s interpretation, the slower EQC pay to the longer homeowners of $100,000 first-tier cover.
EQC added that for about 22,500 homes had more than $100,000 damage from more than one event. Nevertheless, that figure would be reduced by an unknown number whose cover had been reinstated either by receiving some sort of payment or by renewing or buying new insurance. EQC cover had attached to fire insurance.
Mr. Goddard told that private insurance might not be available either unless there was EQC cover left. Jack Hodder as EQC’s lawyer says that EQC has no a broad discretion to do justice because it can only act according to the law. He adds that actually, an anomaly arising from the application of the law isn’t relevant.