University settles with insurers

University settles with insurers

December 15, 2014

The University of Canterbury has agreed to settle its insurance claims under the Universities NZ collective insurance policy arising out of the 2010 and 2011 earthquakes.

All of the sums received will be expended over the next few years in the replacement and remediation of the university’s buildings and facilities. The total settlement offer is $550 million of which $303 million has already been paid or had already been agreed to be paid.

Vice-Chancellor Dr Rod Carr says the University recognises the settlement offer as an acceptable outcome in the circumstances, considering the complexity of the claims. Payment is expected to be made in full by January 28, 2015.

``We will be looking to put in place a remediation programme for key sites such as the Commerce building, in line with the University’s UC Futures agreement with the Government.

``We are pleased to confirm that the insurance settlement will enable the University to meet its share of funding of the $357 million of work in the Science and Engineering precinct as agreed with the Government and will help expedite campus remediation to optimise facilities for staff and students. We have already completed remediation of more than a dozen major buildings and added new and improved student spaces.

``We continue to deliver high-quality education to all students while maintaining research productivity and excellence and managing a difficult financial position prudently. We are mindful of the need to preserve capability with the need to align spending with sustainable revenue within an appropriate time.’’ Dr Carr says.

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