The Government announced plans reform laws governing insurance contracts. Minister Faafoi has said that consumers will have greater certainty about their insurance cover when they need to make a claim.
Agreed changes include:
- Placing the responsibility on insurers to ask consumers the right questions when processing new insurance policies
- Requiring insurance policies to be written and presented clearly
- Ensuring insurers respond proportionately when consumers don’t disclose something they should have, or misrepresent themselves
- Strengthening protections for consumers against unfair terms in insurance contracts
- Allowing the FMA to monitor and enforce compliance with new requirements