9 Oct 2013

Insurance Council welcomes quake-strengthening ruling

6:52 am on 9 October 2013

The Insurance Council has welcomed a court ruling which confirms city councils cannot force existing commercial buildings to be strengthened beyond 34% of the modern building standard.

The Insurance Council took action against the Christchurch City Council, which was trying to make owners of earthquake-prone buildings repair them to 67% of the standard.

The High Court found the Christchurch City Council had acted unlawfully, but that decision was challenged in the Court of Appeal.

Insurance Council chief executive Tim Grafton says the rejection of the appeal means some rebuild settlements in Christchurch will be able to get underway.

"It provides a great deal of certainty now in the commercial sector, particularly for the rebuild in Canterbury where some settlements would have been on hold until this certainty had been provided.

"But also equally just around the country, it makes it very clear that councils cannot exceed what the legislation provides for."

He says the implications of a 67% standard would have ultimately cost insurers hundreds of millions of dollars in repair costs.