Know your rights
If you use the services of an insurance broker, check they are on the Financial Service Providers Register(external link) for financial advisers first.
Also look for a broker that is a member of the Insurance Brokers Association of New Zealand Ltd (IBANZ). It regulates its members to help protect you. You have extra protection if they breach their professional code of conduct.
See the Insurance Brokers Association of NZ's website(external link).
Insurers must treat you fairly and settle your claim fairly and efficiently.
The guarantees for services under the Consumer Guarantees Act apply to insurance services bought for domestic or household use. They cover any faulty advice from an insurance broker and the insurance companies themselves.
The guarantees are that services will be:
- provided with reasonable care and skill
- fit for the purpose intended
- completed within a reasonable time (if not agreed beforehand)
- reasonably priced (if not agreed beforehand).
Read Faulty or unsatisfactory services to find out more.
The Fair Trading Act prohibits insurance companies or brokers when they sell you insurance or give you advice from:
- making false or misleading statements
- behaving in a false or misleading way
- using unfair sales practices
- including unfair contract terms.
Read False and misleading advertising or trading to find out more.
What you need to tell insurers (disclosure)
You need to be honest, and give complete, up-to-date and relevant information when:
- you apply for insurance (the proposal)
- you renew your policy
- you make a claim
- your circumstances change.
Before you make a claim, check the information that you have already provided. If it is incorrect or you left out information, the insurer may refuse your claim or even cancel your insurance from the starting date of the policy. However, they can only do this if the information is important (material) and would have affected their decision to insure or the level of premium charged.