Quake claims rising, demand heavy

The closure sign outside New World in Kaiapoi, Christchurch, Photo / NZ Herald

The Earthquake Commission (EQC) has received more than 44,000 claims for damage to residential property from last Saturday's earthquake in Canterbury, and is struggling to meet demand.

The Government is working with insurers, EQC, banks and local government to ensure claims are paid as quickly as possible following the magnitude 7.1 earthquake a week ago, and a number of vicious aftershocks.

EQC is focusing on inspecting the 5000 properties that owners have said are uninhabitable or not waterproof, said the commission's insurance manager, Lance Dixon.

Once that is completed, EQC inspectors will look at claims where structural damage has occurred, and fast-track the settlement of non-structural claims.

More than 60 people are currently working through the inspections, and that will build up to more than 400 people in coming weeks.

"Our immediate priority has been to ensure that we have sufficient resources to lodge these claims and make contact with property owners whose houses were or are uninhabitable or not weatherproof," Mr Dixon said.

"The sheer demand on our phone lines has meant that many people have had difficulty making contact, either to make a claim or to ask a question of some sort."

EQC is increasing the numbers of staff processing claims. At present, staff answering phone queries about a claim are diverted from the task of processing claim payments.

"We recognise that this is a very stressful time for the people of Canterbury and we would like to offer assurances that we are working to settle claims as quickly as possible," he said.

Non-urgent questions should be emailed to claims@eqc.govt.nz, and will receive a reply within seven days.

A list of answers to common questions are being posted on the EQC website (www.eqc.govt.nz).

People who have lodged a claim with EQC should receive a letter of acknowledgement within about seven days.

Anyone undertaking emergency repairs should photograph the damage or damaged items, authorise a repair and forward the invoice to EQC.

The commission expects claims to total 100,000, at a cost of about $2 billion.

- NZPA