Thursday, December 30, 2010
WELLINGTON, Dec 30 - The New Zealand government disaster insurance fund said it had paid out nearly NZ$581 million in claims on damages to buildings caused by the September earthquake and aftershocks in Christchurch, the country's second largest city.
The Earthquake Commission said it had settled around 17 percent of the 161,600 claims lodged and had assessed or was inspecting more than 45,000 other claims arising from the force 7.1 quake which struck Christchurch and adjoining towns on Sept. 4 causing widespread damage but only several minor injuries.
'The total paid to date is a significant portion of the current estimated cost to us of NZ$2.75 billion to NZ$3.5 billion,' EQC chief executive Ian Simpson said in a statement.
The Commission's disaster fund will cover NZ$1.5 billion of the quake costs, with reinsurers covering costs over that to NZ$4 billion.
International reinsurance companies, including Aspen Insurance Holdings , have put the cost of the earthquake at as much as NZ$5.5 billion.
The Canterbury region has been struck by hundreds of aftershocks, including several at force 4.9 and stronger which have caused new damage.
The New Zealand government said in its mid-year fiscal update earlier this month that earthquake costs and reconstruction will be a factor in it posting a larger than expected deficit and needing to borrow more in the short term. See [ID:nWLF004944]
The third quarter current account deficit was smaller than expected, in part because of an allowance of NZ$1.7 billion in reinsurance payments flowing into the country to cover earthquake costs.
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