Advisers’ role clarified by select committee
The bill was introduced to parliament in April by Commerce Minister Andrew Bayly. It is a development of the previous Government’s Insurance Contracts Bill.
It proposes a new duty of disclosure, in which, for consumer cover, policyholders will have a duty of reasonable care not to make a misrepresentation to the insurer. This puts the onus on insurers to ask questions that reveal the required information.
Insurers would also be required to respond proportionately to failure to disclose.
Insurers will be required to make sure their contracts are worded clearly and effectively and claims ae paid within a reasonable time. Exemptions from the Fair Trading Act for unfair contract terms will be narrowed.
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