What happens if we breach this code

This section explains what can happen if we breach the Fair Insurance Code.

30. As a member of ICNZ, we’re committed to following this code. As part of our commitment we’ll:

  • have appropriate internal assurance processes in place to enable us to monitor our compliance with the code

  • report any significant breaches that we become aware of to ICNZ

  • provide code compliance reports to ICNZ as required.

31. The external dispute resolution scheme can consider breaches of this code once they have been through the internal dispute resolution process and a deadlock letter has been issued. We’re bound to comply with the decision of that scheme. If our scheme decides that we have significantly breached the code, we’ll report that breach to ICNZ.

32. If a significant breach is reported to ICNZ, it will be investigated by the independent Code Compliance Committee, who will then make a recommendation to the ICNZ Board on what action they should take.

33. We can be reprimanded, fined or expelled from ICNZ by its Board for significant breaches of this code. The external dispute resolution schemes report significant breaches of this code to ICNZ for this purpose.
 
34. A significant breach is a breach of any part of the code, or a number of breaches of the code, that could bring the insurance industry into disrepute, and for which there is no reasonable explanation. For example the following must be reported to ICNZ:
  • a claim still being unsettled after 12 months

  • the handling of a claim or complaint causing serious hardship to the policyholder

  • us not complying with the order from an external dispute resolution scheme upholding a complaint against us.

35. Any fine money paid by us will be used by ICNZ to provide public education on insurance.

We’ll promote and share copies of the code widely

36. ICNZ and its members will promote this code and make copies widely available.

37. We’ll tell you where you can access a copy of this code:

  • when you take out or renew your insurance cover with us

  • when you lodge a claim

  • if you make a complaint.

38. We’ll display the Fair Insurance Code logo on our websites and claims and complaints documentation.

The Insurance Council of New Zealand

ICNZ represents general insurers who insure about 95 percent of the New Zealand general insurance market, including over half a trillion dollars’ worth of New Zealand property and liabilities.

ICNZ’s role is to work on behalf of members and the public of New Zealand to promote trust and confidence in insurance.

ICNZ’s members are all licensed under the Insurance (Prudential Supervision) Act 2010 and are signatories to the Fair Insurance Code that requires insurers to act ethically. ICNZ also performs an important role in informing and educating consumers about key insurance issues and risks.

Where to go if you need some extra help

If you have difficulties understanding your policy, or during the claim or complaints process, the following organisations might be able to help you:

For more information on the Fair Insurance Code please contact:

Insurance Council of New Zealand

This code is also available in:

  • Te Reo Maori

  • New Zealand Sign Language

  • audio.

All formats of the code can be found at www.icnz.org.nz/fair-insurance-code