Accelerated settlements for historic claims   7 May 2015

7 May 2015

Accelerated settlements for historic claims

Social Development Minister Anne Tolley has announced that people with unresolved claims of historic abuse in state care are to be given the option of a fast-track settlement, or to continue with the normal process.

Claimants who choose the new settlement approach will receive a prompt financial payment and a letter of apology from the Ministry of Social Development Chief Executive. This will be available for claims lodged before the end of 2014.

MSD has received 1572 claims since 2004, and so far 583 have been resolved, with pay outs totalling $8.4 million. The average time taken to resolve a claim is 27 months, while 207 claims have been in the system for over five years. 862 people will be eligible for the faster settlement.

“These claimants have suffered significant trauma and the claims process can often be difficult and emotional,” says Mrs Tolley.

“This accelerated process, in which there is no compulsion to take part, is an acknowledgement that it is taking too long to resolve claims.

“It will give claimants the opportunity to reach some kind of closure sooner, if that is their wish.

“MSD is doing its best to administer claims as quickly as possible, however the normal process involves a complex and detailed investigation and assessment, which means that some people can wait a number of years before their claim is resolved.

“The new settlement offer will be based on an assessment of the claim, and a face value acceptance of the key elements of the claim subject to checking some key facts.

“The financial settlements will be based on claims resolved to date, to ensure as much as possible that there is equity between past and current claims.

“If the offer is over $30,000, claimants will be advised to take legal advice with the Ministry paying up to $250 of the cost.

“Claimants who decide not to opt for the accelerated settlement will continue to have their case assessed under the existing process. The goal is to conclude all historic claims by the end of 2020.”

Eligible claimants, and their legal representatives, are being contacted this week.

The settlement offer only applies to backlogged claims, and those received after 1 January 2015 will be subject to the normal historic claims process.

ends

Add a comment