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Pre-October 2014 Payment Package
Background to the Package
In December 2020 the Government announced a payment package for affected customers who cash settled with Southern Response prior to 1 October 2014. We refer to this package as the "Pre-October 2014 Payment Package" or "Package".
Prior to October 2014, Southern Response did not ordinarily pay professional fees and contingencies for ‘Buy Another House’ or other cash settlement options.
Subsequent court decisions have said those costs should be included in the calculation of the estimated cost to rebuild or repair a dwelling. Based on these decisions, Southern Response commenced paying these costs in cash settlements entered into after October 2014.
The Package aims to address the inequity between customers who cash settled their insurance claims prior to October 2014, compared to those who settled after that date, by making additional payments to eligible customers in the pre-October 2014 group.
The Package has been informed by the Dodds Court of Appeal decision and more information about that Court decision can be found here.
Package Payments
Depending on each individual customer’s circumstances, a payment under the Package may include allowances for:
- professional fees;
- contingency; and
- interest (from date of original cash settlement to date payment is released by Southern Response).
The calculation of a Package payment will depend in part on whether the original cash settlement with Southern Response was an over-cap settlement or an out-of-scope settlement. Definitions for these two types of cash settlement are provided below together with further information about the Package.
Eligibility for the Pre-October 2014 Payment Package
To find out if you may be eligible for the Package and to apply, please follow the link here.
Further information about the Package
- For information relating to over-cap settlements, please click here.
- For information relating to out-of-scope settlements, please click here.
Independent Oversight Committee
The implementation of the Package will be overseen by an Independent Oversight Committee (IOC). To learn more about the IOC, click here.
Package Review Process
If you have received a Package offer from Southern Response and have concerns about how it has been calculated, you may request a review of your offer within 20 working days of receiving it. For more information about the Package Review Process, please click here.
2022 Statement of Performance Expectations
2021-2022 Statement of Performance Expectations (published 110621)
Proactive package for Southern Response Claimants
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.
“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.
“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,” David Clark said.
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,” David Clark said.
Pre-October 2014 Payment Package Registration Form
If you think you may be eligible for the Pre-October 2014 Payment Package, please click on this link, which will redirect you to our electronic registration form page
For a printable version of the Registration Form, please click here:
Your printed form can be scanned and emailed to: This email address is being protected from spambots. You need JavaScript enabled to view it. or posted to:
Southern Response Earthquake Services Ltd.
PO Box 9052
Tower Junction
Christchurch 8149
You can also call us on our freephone number 0800 501525