New legislation provides greater safeguards for New Zealanders.
Commerce and Consumer Affairs Minister Andrew Bayly says modernising insurance law will give Kiwis confidence in being treated fairly by insurers. The Contracts of Insurance Bill has passed its third reading, introducing significant new safeguards.
Under the outdated existing law, consumers were required to disclose any information that might influence a 'prudent insurer,' leading to claims being voided due to accidental or unknowing non-disclosure. The new legislation shifts the onus onto insurers to ask relevant questions and requires them to write policies in plain language and pay claims within a reasonable time.
The Bill also includes provisions safeguarding Kiwis' access to life and health insurance if they have taken a genetic test, aligning New Zealand with international partners such as Canada. A thorough consultation process ensured the balance between consumer protection and market certainty.
Mr Bayly says the legislation will maintain a fair and well-functioning insurance market in New Zealand, enabling consumers and businesses to access finance and grow their investments.