Suncorp has dropped a class action against the ACT Government over the 2003 Black Saturday bushfires after settling for an undisclosed amount.

More than 400 clients represented by Suncorp will receive some measure of compensation, while more than 100 others continue to fight on in a separate suit in the ACT Supreme Court.

Suncorp spokesman Jamin Smith told insuranceNEWS.com.au Suncorp has reached a “confidential” agreement with the ACT Government.

From a high of nearly 4000 plaintiffs, only 127 now remain as part of a class action seeking compensation for the damage caused by the 2003 Canberra bushfires.

The case in the ACT Supreme Court began formal hearings last week. Some of the 127 plaintiffs are represented by QBE. More than 100 were uninsured at the time of the bushfires.

The plaintiffs are claiming the ACT Government failed to curtail the risk of a fire reaching Canberra from the Brindabella Ranges by reducing fuel loads and lowering maintenance of fire trails.

NRMA Insurance withdrew from its action in December, saying no settlement had been reached with the ACT or NSW governments to cover its 2000 claimants.

The hearing will take 12 weeks to complete.