Drivers were forced to pull over on SH1 by Dome Valley when seal lifted from the road onto tyres. Photo / Supplied
Drivers were forced to pull over on SH1 by Dome Valley when seal lifted from the road onto tyres. Photo / Supplied
The number of vehicles damaged when newly laid seal peeled off and stuck to cars like tar at Dome Valley has doubled to 110, with one fuming motorist being told the contractor’s insurer has refused liability for repairs.
However, Fulton Hogan, which was forced to repair the failed seal just before Christmas at its own cost, says neither the company nor its insurer are refusing to pay up, and is urging impacted vehicle owners to lodge claims with their own insurers.
Dozens of vehicles suffered damage when freshly laid chipseal peeled off State Highway 1 near Frogpool Farm in December following heavy rain, prompting apologies from Fulton Hogan and Waka Kotahi.
Waka Kotahi said the situation fell “short of expectations” for work on state highways, referring anyone with compensation claims to Fulton Hogan.
Fulton Hogan’s chief operating officer for infrastructure Simon Dyne had assured affected motorists the company would be taking “all compensation claims seriously”.
Claimants were asked to send photos of damage and estimates for repairs.
However, four months on, at least one affected motorists has been told Fulton Hogan’s insurers have refused liability “at this time” for third party vehicles damaged during the incident.
The Auckland man’s car suffered up to $30,000 in damage. He said he was disappointed at the apparent lack of compensation given Fulton Hogan’s earlier undertakings.
“They went, ‘Yep, we’ll accept responsibility, we’ll get this sorted’. Now they’re telling you to piss off.
“They said, ‘We’ll look after you’, and then four months later go, ‘No thanks’.”
Slow traffic after contractors laid a new section of seal on State Highway 1 at Dome Valley. Photo / NZME
The man said his vehicle’s undercarriage, which became caked with tar and “rattling” stones, needed replacing. A panel beater had quoted $20,000-$30,000 to complete the work but had been awaiting sign-off for months from Fulton Hogan’s insurer.
After seeking repeated updates, the man finally received an email this month - seen by the Herald - from a loss adjuster saying Fulton Hogan’s insurers were not accepting liability “at this stage”.
He was told the fastest course of action was to make a claim with his own insurer, which would incur an excess payment.
“But if liability is accepted by Fulton Hogan and their insurers in the fullness of time, this will be refunded to you,” the loss adjuster wrote.
The man said claiming on his own insurance would affect his no-claims bonus and mean higher premiums. He was also concerned about uninsured vehicle owners being left high and dry through no fault of their own.
Motorists heading south into Auckland on SH1 near Dome Valley were troubled by a bad section of road peeling off. Photo / Supplied
Rodney local board elected member Geoff Upson said the road should never have been in such a state. There was a “reasonable case” for Fulton Hogan covering at least some of people’s costs.
“It’s all just a fob-off. Nobody wants to take responsibility.”
In a statement, Dyne revealed that 110 motorists had now notified Fulton Hogan of vehicle damage - double the number reported in December - with most claims between $800 and $1000.
The notifications had been registered as claims via the motorists’ own insurance companies.
Dyne denied the company was refusing liability, saying it had already reimbursed a handful of uninsured vehicle owners “to alleviate any immediate hardship”.
“We have previously acknowledged and apologised for the technical failure of the road seal in Dome Valley in December last year.
“We regret that members of the public were affected by the seal lifting, which was triggered by extreme weather conditions including heavy rain followed by a very hot day.
“Working with our insurance partners, we do not believe Fulton Hogan is holding up any of the individual claim processes. Our advice for anyone affected is to raise this with their insurer, and if they are not insured, contact us.”
If motorists were not at fault, and their insurer could recover costs from “the liable party”, they would not lose their no-claims bonus or incur higher premiums, Dyne said.
While he admitted “prolonged interaction” with insurance companies was inconvenient, “that is an aspect of process in the insurance industry that is well outside our sphere of control”.
Waka Kotahi said all claims for the chipseal failure were processed through Fulton Hogan directly.
“Waka Kotahi has no involvement in this process and is unable to comment on claims received, value of claims, or any individuals’ circumstances. Waka Kotahi expects that all claims are treated fairly and seriously.”
