Christchurch Earthquake: Over $12.5m paid out in life claims

The latest industry report, for the quarter ended 31 March 2011, confirmed the life insurance industry had been impacted in two ways following the February earthquake in Christchurch; with total death claims rising over the quarter, and in-force premium growth less than half the previous quarter.

In total, ISI members received and paid out on 63 individual life insurance claims as a result of the 22 February earthquake, worth a combined $12.527m and representing an average payment of $199,000 per claim.

ISI chief executive Peter Neilson says that while an insurance pay out can never compensate for the loss of a loved one, it can provide a degree of financial security for families who lost a family member.  He says the response from the entire industry to the tragedy included looking for ways to process claims quickly and compassionately.

As well as death claims, there were also claims accepted for redundancy (180), income protection (16) and trauma or total permanent disability (2), with payments expected to be in excess of $1m once they have been finalised (these policies typically make regular payments rather than provide a single lump sum).