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Wellington gas crisis leads to claims

A gas shortage that has been affecting Wellington for the past week is likely to result in a number of claims mostly from restaurants and hotels, according to the Insurance Council of New Zealand (ICNZ).

Water was discovered in the city’s gas pipes last week, which led to the supply needing to be cut for a week.

ICNZ CEO Chris Ryan told Sunrise Exchange News most businesses have had their gas restored, but there are some that are still doing without.

“It has mainly affected restaurants and hotels that use gas for cooking,” he said. “Mainly the city operated as per normal, though.”

Insurers are already receiving claims, mostly under their business interruption policies, Mr Ryan said. “Insurers are paying claims provided policyholders can provided estimates of their losses.”

He doesn’t expect any delays in claims payouts while the cause of the gas supply problem is identified.