New Zealand mutual liability trust fund Riskpool has withdrawn its professional indemnity and public liability insurance for possible claims related to Christchurch building consents.
It comes after the city council lost its International Accreditation New Zealand approval as a building consent authority.
The withdrawal would require the council to meet liabilities under the Building Act from its own funds.
“We are moving quickly to gain clarity on Riskpool’s position and what the implications are for the council,” the authority’s Corporate and Financial Committee Chairman Helen Broughton said.
“We are seeking legal advice, and will be meeting with Riskpool to discuss the position further.”
The council says Christchurch receives a number of the claims each year, each with a maximum excess of $NZ50,000 ($42,480).
Canterbury Earthquake Recovery Minister Gerry Brownlee says the city should have the capacity to absorb any liabilities resulting from the Riskpool decision.
The Insurance Council of New Zealand (ICNZ) says it will monitor developments following the loss of the accreditation.
A government manager is to work with the council to address problems and help it regain its consents status from International Accreditation New Zealand. The Governm
