NZPI To Take Closer Look At Indemnity Insurance

MEDIA RELEASE Tuesday 3 December 2001

PROPERTY INSTITUTE TO TAKE CLOSER LOOK AT INDEMNITY INSURANCE

The New Zealand Property Institute CEO, Conor English, said today that the Institute would be taking a close look at the professional indemnity insurance available to valuers and other property professionals.

Mr English said today, "Indemnity Insurance is an important part of a professional property practice. As an input cost it is important that premiums are fair and reasonable. Feedback from our members has been that some premiums have risen by as much as 100%. Excess levels have also changed. This needs some explanation.

"Increasing costs of indemnity Insurance simply means more cost for valuers and therefore more cost for members of the public who use valuation and other property services," he said.

Mr English said he had recently met with one provider of this insurance seeking more information. "If valuers and other property professionals are going to have to pay substantially more for their insurance they need a clear explanation as to why. It is not clear to date they have received that," he said.

Mr English said that through the promotion of a code of ethics, continued professional development programmes and its discipline procedures, the Institute was providing professional support that reduces risks for valuers, their clients and insurers.

"Members of the public should seek out and use a Registered Valuer for valuations as they are members of the Institute and need to comply with industry standards and continuing professional development requirements," he said.

"The Institute will follow up on this important issue and get more information. We need to keep Members and the public informed.

"If at the end of the day these cost can not be managed or alternatives found, then the cost to those who use valuers and other property professional services affected by this will simply need to increase," Mr English concluded.

Contact: Conor English, NZPI CEO, 04 384 7094, 025 410 786

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