Friday, December 7, 2012

IAG ~ State Insurance


IAG~State Insurance is the defending champion, having won the 2015 Roger Award and is a finalist for the fifth consecutive year, which will be no surprise to anyone who has lived in Christchurch since 2010. It was nominated this time for impact on people. “Six years after the Christchurch earthquakes started the insurance transnationals (of which IAG/State is by far the biggest) are still making life hell for a significant number of Christchurch people. IAG/State is far from alone in this but it is the biggest and some of its practices are the worst”.

“In 2016 State has been repeatedly hammered in the Christchurch media for its sheer pigheadedness in one particularly egregious case – that of Sumner’s Cave Rock Apartments. One Press headline (13/8/16) says it all: ‘Elderly Die In Wait For Settlement’. This is a transnational corporation which is literally solving the problem of having to meet its contractual obligations by delaying things until its customers all die. And insulting them in the process – see the Press article (17/8/16) headed: ‘Claimants “Stingy” – IAG Employee’”.

“The evidence is not all about one block of flats (although it is all about Christchurch). There is the case of the couple who took State to court and won a more than $700,000 for the rebuild of their home. There are the people still waiting for their homes to be repaired (‘They treated us like a couple of old fools’ – Press, 21/3/16, ‘Long, Lonely Wait For Quake Repairs Fix’), problems with the quality of work performed by the tradesmen contracted by IAG~State to do the repairs, etc, etc”.


“But this is not a matter of flogging a dead horse. Unfortunately this horse is very much alive and still in need of a damned good flogging. As has been said before in previous Roger Awards, what has happened, and is continuing to happen in Christchurch, sets a very bad precedent for what the rest of the country can expect from IAG/State and the other insurance TNCs in the event of a major disaster. The people of Kaikoura and Wellington need to be very afraid of what the future holds for them (and the huge number of Aucklanders who live in apartment blocks and other multi title units should hope that no natural disaster occurs in their city). The Christchurch experience continues to show that the “cure” of insurance is quite often worse than the sickness of earthquakes”.