Most of the insurance payable to Pike River Coal, whose mine on New Zealand’s West Coast collapsed in an explosion, has gone on legal fees – leaving only a few thousand dollars for each of the 29 victims’ families.

Greymouth District Court this month ordered the company to pay $NZ110,000 ($94,344) reparation to each family and the two survivors of the 2010 blast.

Pike River had a $NZ2 million ($1.72 million) statutory liability policy, but company receiver John Fisk of PricewaterhouseCoopers says most of this has been spent on legal fees for directors and staff.

Only $NZ156,000 ($133,780) is available for compensation payments, he told insuranceNEWS.com.au.

The court also fined Pike River Coal $NZ760,000 ($651,800) on nine charges, but Mr Fisk says the company cannot pay this, and fines rank below unsecured creditors.

There will not be enough funds to pay all secured creditors in full.