An “out of scope” (or OOS) claim is a claim made under the AMI policy for earthquake damage to property items ‘outside the scope’ of the Earthquake Commission Act 1993 but covered under the wider definition of “house” in the AMI policy. This includes, for example, fences, driveways, paths and swimming pools.
Under the Package, an OOS settlement is a settlement with Southern Response for repair or replacement of OOS items that did not include any payment from Southern Response to repair or rebuild a residential dwelling house. Any settlement with Southern Response for repair or replacement of OOS items that included a payment from Southern Response for earthquake damage to a residential dwelling house is an over-cap settlement (see definition above).
AMI policyholders who settled an OOS claim with Southern Response prior to October 2014 may be eligible for an additional contingency payment if they have not previously been paid those costs. In limited circumstances, AMI policyholders who settled an OOS claim with Southern Response prior to October 2014 may be eligible for an additional allowance for professional fees, if they have not already been paid these costs.
Please click here to check your eligibility.
How to register for the Payment Package
If you believe you may be eligible for a payment under the Package, you will need to fill out the registration form with as many details as you can.
Online registration form
Printable registration form
Once we have received your registration, we will need to verify your identity. We use a secure digital verification program called APLYiD. Click here to learn about APLYiD. Once the identity verification process is complete your claim will be queued to be assigned to a Customer Relationship Manager who will review your claim and complete the calculation for any entitlement you may have.
Calculating payments under the Package for OOS settlements
Under the Package, the amount paid for an OOS settlement depends on the nature and the amount of the original OOS cash settlement with Southern Response (before deduction of policy excesses) (Original Settlement) and whether any contingency or professional fees have already been paid.
In most OOS cases, a Contingency Amount of 10% will be calculated on the Original Settlement amount. Any previous payments for contingency will be deducted before interest is calculated.
In all OOS cases where a Contingency Amount is paid under the Package, interest will be calculated on the Contingency Amount after any amounts previously paid by Southern Response for contingency have been deducted.
Interest will be calculated using the online Ministry of Justice Civil Debt Interest Calculator:
- from the date the Original Settlement payment was loaded in Southern Response's system for payment;
- to the date on which the Package payment is released by Southern Response.
Southern Response will also need to account for any matters particular to the policyholder's insurance policy and/or Original Settlement, such as:
- where the relevant policy had a specified maximum sum insured; or
- where shared property was involved (such as a shared fence or driveway).
Matters such as these may reduce or eliminate Southern Response's offer under the Package depending on the particular detail and circumstances of the Original Settlement. There are many variations in the application of these basic principles to reflect circumstances relevant to each case and this is a broad outline only. Some of these variations are mentioned further below. Any offer of payment that Southern Response makes to a policyholder will set out how Southern Response has calculated the offer.
Most customers with an OOS claim will not be required to sign a Settlement Deed with Southern Response in return for their Package payment.
Package offers for OOS claims will generally not include a contribution towards legal fees.
Example Package calculation for an OOS settlement
This is a general example only. The offer to each policyholder is subject to calculation and review of the specific circumstances, including how the claim was originally settled. All figures in this example are GST inclusive.
Mr and Mrs Jones had an out-of-scope claim with Southern Response for repairs to their driveway and fences. The Original Settlement amount for their claim was $8,000 and this was paid by Southern Response on 14 June 2012.
| Original Settlement amount | $8,000.00 |
| Contigency Amount of 10% on the Original Settlement amount | $800.00 |
|
Apply interest to the Contingency Amount ($800.00) using the Ministry of Justice Civil Debt Interest Calculator from date of the Original Settlement (14 June 2012) to the date on which the Package payment is released by Southern Response (8 September 2022 for this example) |
$304.58 |
| Add together the Contingency Amount ($800.00) and interest ($304.58) to calculate the total Package offer | $1,104.58 |
Professional Fees will not be payable on most OOS settlements
Professional fees will only be included in a Package offer for an OOS settlement in limited circumstances. Some examples are discussed briefly below.
- If the Original Settlement did not include an amount for professional fees:
- a professional fee amount will only be calculated under the Package if the original OOS claim was for earthquake damage to property items that would (at the time of the Original Settlement) have required the services of engineers or other professional consultants to complete a Code compliant repair.
- the types of OOS property repairs that might satisfy these criteria include, for example, the full replacement of a concrete swimming pool where building consent and engineering services would have been required to complete this work.
- if the criteria above are met, a Professional Fees Amount will be calculated at 10% of the Original Settlement amount, and the Contingency Amount will be calculated on the total of the Original Settlement amount and the Professional Fees Amount.
- any previous payments for professional fees will be deducted before interest is calculated on the total pf the Professional Fees Amount and the Contingency Amount. - If the Original Settlement was unusually complex (because, for example, payments for professional fees and/or contingency were included in the Original Settlement), the Package offer for an OOS settlement may be calculated by applying the Package principles for over-cap settlements discussed here.
For further information about Package applications for OOS settlements, please click here to view our Frequently Asked Questions.