Hon Andrew
Bayly
Minister of Commerce and Consumer
Affairs
Modernised insurance law will provide Kiwis
with confidence that they will be treated fairly by
insurance providers, Commerce and Consumer Affairs Minister
Andrew Bayly says.
“A secure insurance market is
integral to New Zealand’s economic success. It enables
consumers and businesses to access finance and gives them
the assurance to grow and invest,” Mr Bayly
says.
“The Contracts of Insurance Bill and the
Contracts of Insurance (Repeals and Amendments) Bill, which
passed third reading today, provides consumers with
significant new safeguards.
“Importantly, consumers
will no longer have to rack their brains and guess what
information is relevant to their insurance
policy.
“Under the outdated existing law, consumers
must disclose any information that might influence a
‘prudent insurer’ – a term that is poorly understood by
consumers and has led to insurers voiding claims when
consumers accidentally or unknowingly fail to disclose
information.
“Now, the onus is on insurers to ask
the right questions and consumers must simply provide honest
answers.
“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.
“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.
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“Genetic testing is a valuable, emerging
technology that can unlock significant health and
productivity benefits. However, there are international
examples of insurers limiting cover, or increasing premiums,
due to genetic testing results.
“While we don’t
believe this is happening regularly in New Zealand now, the
Bill includes provisions which mean the Government can, if
needed in the future, regulate the use of genetic testing
results by insurers.
“This change brings New Zealand
closer in step with our partners. Canada has laws stopping
insurers from seeing genetic test information, and recently
Australia announced it will ban life insurers from using
genetic test results.
“Thorough consultation has
ensured that this Bill balances consumer protection with
providing certainty for the market. I am delighted that we
have delivered on a Q4 promise and ensured the viability of
a fair and well-functioning insurance
market.”
