27 Jul 2013

Council assured $18m claim will be paid

5:55 am on 27 July 2013

Christchurch City Council says it will finally be paid the $18.7 million owed from its insurer for damage to underground infrastructure.

Councillor Yani Johanson said on Friday the council has been waiting for over a month for a response to two letters it had written to Civic Assurance asking that the settled claim be paid.

The payment was originally held up by a court battle between Civic Assurance and its reinsurer, but that was sorted out in early June.

Mr Johanson said the council received a letter from the insurer on Thursday saying the entire claim would be paid within five days.

He said he doesn't know why it's taken so long and in the meantime the council has had to borrow money to pay for repair work.