Govt reveals plans to change insurance rules

Commerce Minister Kris Faafoi has revealed the changes the Government plans to make as a result of its review of insurance contract law.

Submissions were sought earlier this year. The Government was concerned about issues of disclosure, how easy it was to understand and read policies, and unfair contract terms.

“Insurance is vitally important in supporting consumers and businesses to be financially resilient when unexpected events happen,” Faafoi said.

“The current law is outdated, and many insurance policies are complex and difficult to follow. This means consumers can be buying insurance products they don’t understand, which can be poorly suited to their needs, and can leave them in the dark about what they should disclose to their insurer."