Feature
Long-awaited Insurance Contracts Bill released Lloyd Cavanagh, partner, MinterEllisonRuddWatts and Sarah Jones, solicitor, MinterEllisonRuddWatts, review MBIE’s planned reform of insurance contract law.
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he Ministry of Business, Innovation and Employment (MBIE) released a consultation draft of the Insurance Contracts Bill (Bill) for public feedback on February 24. The Bill reforms and updates New Zealand’s insurance contract law – the Bill proposes fundamental changes to the duty of disclosure, introduces regulation of unfair contract terms and the presentation of consumer insurance contracts, and is intended to roll up New Zealand’s disparate insurance legislative regime. The Bill follows a public consultation on how to reform insurance contract law in late 2019. The Bill aims to address shortcomings in insurance contract regulation identified in MBIE’s 2019 consultation. The current consultation focuses on whether the Bill appropriately addresses these shortcomings.
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March 2022
Submissions on the consultation close 4 May 2022. Who needs to read it? Why? The Bill will apply to a “contract of insurance” (as defined in the Insurance (Prudential Supervision) Act 2010). Accordingly, the Bill will have broad reach over the insurance industry – affecting both general and life insurance providers as well as reinsurers, and providing greater protections for policyholders. The Bill should be considered by all insurers, their advisers, and individuals and businesses who are policyholders. What does it cover? Background to the Bill Following consultation in 2019, the Government agreed to reform insurance contract law, including: • Placing the responsibility on
