A draft version of the Insurance Contract Bill has been released for consultation by MBIE.
If made into law, the bill would introduce a range of changes that MBIE says will make insurance contracts easier to understand and fairer to consumers. However, industry feedback is being sought prior to the draft Bill being signed-off.
“MBIE has been reviewing New Zealand’s insurance contract law to ensure it is facilitating well-functioning insurance markets,” says Tom Simcock, Manager Financial Markets, MBIE.
He says the Bill will “…ensure consumers and businesses have greater certainty about their rights and obligations”.
“At the moment, consumer policyholders can lose insurance cover for not disclosing information that they did not know they needed to disclose to the insurer,” says Simcock.
“One of the changes agreed by Government is to put the onus on insurers to tell consumers what the insurer needs to know.”
Consultation on the draft Insurance Contract Bill closes on 4 May 2022. The draft Bill, alongside a consumer summary document and information on how to have your say, is available on MBIE’s website.
Once submissions have been reviewed and any changes made, the Bill will go through the normal Parliamentary process.
More information on the review is available here.