New Zealand resident Christopher Robinson has been sentenced to nine months’ home detention for trying to extort $NZ5.5 million ($5.26 million) from IAG.

A court spokesman told insuranceNEWS.com.au the sentence was imposed last Friday in the Whangarei High Court after a jury last month found Robinson guilty.

IAG New Zealand Head of Corporate Affairs Craig Dowling told insuranceNEWS.com.au: “We are satisfied the matter has been dealt with appropriately.”

Robinson resorted to blackmailing IAG after the insurer refused his claim for a fire at his five-bedroom house in September 2011, on the grounds the blaze was deliberately started.

He accused the insurer’s investigators of fabricating evidence and threatened to destroy IAG’s image by publicising the matter.

“We were seriously concerned by the nature and tone of interactions with Mr Robinson,” Mr Dowling said. “Making a blackmail complaint to the police is very unusual for IAG.

“However, Mr Robinson’s threats and the demands, made at a time when he was on bail, were so improper that IAG was obliged to refer the matter to the New Zealand Police.”

IAG affirmed its view that the fire was no accident.