New Zealand Insurance Information

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General New Zealand Insurance Information

• Compulsory Insurance:
  Personal Injury - a No-Fault Compensation scheme for all people including visitors was established under The Accident Rehabilitation and Compensation Insurance Act of 1992. Under this Act the right to sue was abolished so this is the only compensation an injured party will receive. Note: Additional Personal Injury Coverage can be purchased from Insurers.
• Non-Admitted Insurance:
  Permitted.
• Policy Wordings & Rates / Tariffs Controlled:
  No restrictions on either wordings or rates.
• Policy Language:
  English.
• Types of Insurance Restricted to Government Institutions:
  None other than the basic Personal Injury described above.
• Policy Currency:
  New Zealand dollar (NZD). U.S. $ insurance is available.
• Currency Restrictions / Exchange Controls:
  No restrictions known.
• Policy Period:
  Annual.
• Cancellation Provisions:
  30 day written notice (shorter periods are available - check policy provisions).
• Premium Tax, etc. paid by Insured:
  .073% on indemnity value of real property [Fire Service Levy];
  .05% on indemnity value of real property [Earthquake Levy];
  3.3% Withholding Tax on premium plus brokerage for non-admitted coverage and foreign premium cessions; 12.5% on premium plus above levies [Goods and Services Tax]. This tax is 100% recoverable for locally registered businesses and does not apply to reinsurance cessions.
• Insurance Companies:
  No restrictions on foreign ownership.
• Brokers:
  Most business is handled by brokers. The Insurance Intermediaries Act 1994 “deems premiums paid to the broker to have been paid to the underwriter”.
• Brokerage Commissions:
  Fire - 17.5%;
  Automobile - 10%;
  Marine - 10%;
  Marine Hull - 10-15%.
• Broker of Record Letters:
  Required.
• Reinsurance:
  No compulsory local reinsurance requirements. Free. 3.8% Withholding Tax applies as described in “Premium Taxes”, above.
• Local Natural Hazards:
  Earthquake, Volcanic Eruption.
• Other Information:
  

Property Insurance

• Fire:
  Standard fire perils include - fire, lightning, aircraft, explosion, storm / tempest, burst water pipe, riot / civil commotion, malicious damage, windstorm / hurricane, vehicle impact.
• All Risk:
  Available…known locally as Industrial All Risks.
• Coinsurance:
  100%.
• Blanket Insurance:
  Available.
• Business Interruption:
  UK Loss of Profits.
• Replacement Cost:
  Available.
• Discount for fire protection equipment / systems: Available - maximum credit 50%.

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  UK and U.S. wordings accepted. Comprehensive coverage including Business Interruption can be written. Inspections are normally conducted by Government Inspectors.

General / Public Liability

• Available Wordings:
  Comprehensive General / Public Liability including Product Liability. Product Recall not available.
• Comments:
  Policies can be written on either an occurrence or a claims made basis.

Automobile / Motor

• Compulsory Limits:
  Bodily Injury included in Accident Rehabilitation and Compensation Act. Property Damage NZ$500,00.
• Comments:
  Insured is covered by Accident Rehabilitation and Compensation Act as are passengers..

Workers’ Compensation

• Comments:
  Protection is provided for all employees under the Accident & Rehabilitation Compensation Act (1992). Extra-Territorial, Medical Expenses and Occupational Disease benefits are provided under the Act.

Marine

• Available Wordings:
  Cargo and Hull risks are written on UK policy forms and follow the Institute of London Underwriters. Cargo War Risks and Strikes follow London scale.

Crime

• Available Coverages:
  Follow UK and U.S. forms.

Updates & Additional Information: