New Zealand’s Earthquake Commission (EQC) expects to start making payments for increased liquefaction vulnerability (ILV) cases next month as it looks to resolve 8000 outstanding land claims from the Canterbury earthquakes.

There are about 4400 ILV claimants, and some also qualify for increased flooding vulnerability settlements.

“We’re on track to start making the first payments to ILV customers from late June,” EQC Head of Canterbury Land Settlement Keith Land said.

“We are planning to start contacting customers in early June who, based on the information we have to date, have the opportunity to complete a ground repair on their property to address the ILV land damage.

Mr Land told insuranceNEWS.com.au that about $NZ49.7 million ($46.4 million) has been paid to customers who qualify for increased flooding vulnerability and/or outstanding visible land damage.

But it’s too early to estimate the overall payments that will be made to settle the liquefaction vulnerability cases.

The settlements to liquefaction vulnerability claims will be in cash and will be calculated based on the cost of repair or reduction in market value of the property.

Most of the liquefaction vulnerability settlements are expected to be based on a reduction in market value of the property.

“This is because, where the house has remained in place after the earthquakes (as many have), there will not generally be repair methods available to repair ILV damage on the property,” the EQC says.

The 2010/11 Canterbury earthquakes affected large areas of residential land, making some properties more vulnerable to liquefaction damage from future events.

It is the first time this type of land damage has been recognised as an insured loss.