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Cost of Government Southern Response proactive package released

Wednesday, June 16, 2021   Posted in: Signatory Notice Board By: Administrator With tags: earthquake, recovery, housing

Beehive media release: 15th June 2021

The Government has announced the proactive package for some Southern Response policyholders could cost $313 million if all those eligible apply.

The Minister Responsible for the Earthquake Commission, David Clark announced a proactive package in December 2019 for SRES claimants who settled their claims before October 2014.

It trailed the judgment from the Court of Appeal in relation to Mr and Mrs Dodds and offers a top-up payment to customers in a similar situation.

The package will affect some policyholders who are potentially part of the Ross Class Action, Southern Response has applied to the court for confirmation that it can communicate with those policyholders about the package. This application is still making its way through the court.

"Southern Response has been working with its actuaries to estimate payments likely to be made under the approved package. We are now in a position to release the cost estimate of the full package,” David Clark said.

“Southern Response is preparing an extensive advertising and direct contact campaign to reach out to as many people as possible, if court approval is given.”

“It’s entirely possible in the last 10 years, some of those who qualify will have moved overseas, changed their names due to marriage, or even passed on.  However, Southern Response continues finding up-to-date contact details for all who could be eligible.

Based on actuarial advice, Southern Response is including a cost of $242.5 million in its accounts, reflecting an estimate of around 75 percent take-up of the package.

“Today I am also releasing the papers, via the Treasury website, establishing the proactive package,” David Clark said.