The Contracts of Insurance Bill is to become law having passed its third reading in the Beehive. The final technical hurdle is for it to be signed-off by the Governor General.
Modernised insurance law will provide Kiwis with confidence they will be treated fairly by insurance providers, says Commerce and Consumer Affairs Minister Andrew Bayly.
Following select committee submissions, the Bill has been updated to safeguard Kiwis’ access to life and health insurance if they have taken a genetic test.
“Genetic testing is a valuable, emerging technology that can unlock significant health and productivity benefits,” says Bayly. “However, there are international examples of insurers limiting cover, or increasing premiums, due to genetic testing results.”
Bayly also says consumers will no longer have to rack their brains and guess what information is relevant to their insurance policy.
“Now, the onus is on insurers to ask the right questions and consumers must simply provide honest answers,” he says.
“This and other changes, such as requirements for insurers to write policies in plain language and pay claims within a reasonable time, improves the fairness and clarity of our insurance law.”