A class action case taken out by Southern Response claimants has been dropped.
The group of 24 claimants accused the company of engaging in a strategy of delaying and misleading conduct, for the purpose of minimising payments.
The insurer strongly denies these allegations which the group has now withdrawn and agreed not to repeat.
Individual claims will be settled outside of court in a process involving a retired High Court judge Sir Graham Panckhurst.
Mr Panckhurst will determine appropriate entitlements if an agreement between the parties cannot be reached.
The lawyer for the group, Grant Cameron, says the group is relieved its claims will be resolved by an independent and fair process.
Southern Response chief executive Anthony Honeybone said the company is pleased to have the settled the class action proceeding.
"We did not see it as an efficient or effective way to resolve individual customer claims.
"The agreed alternative and individualised process will be quicker and simpler and should be better for both parties."