Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Insurance excesses cause confusion

Insurance excesses cause confusion, says Insurance & Savings Ombudsman

May 26 2014

Up to 10 percent of calls received by the Insurance & Savings Ombudsman are questions about insurance excesses.

“Many consumers are frustrated about having to pay an excess on their insurance claim,” says Insurance & Savings Ombudsman Karen Stevens. “But in most cases when you make an insurance claim and the claim is accepted, you will need to pay an excess.”

“The two main issues for consumers are having to pay the excess when they are not at fault in a car accident; and paying separate excess amounts for separate events,” says Karen.

“We hear from many people who have to pay the excess when their car has been damaged by another driver. If the other driver was insured, and their company accepts they were at fault, the excess may be refunded and the no-claims bonus reinstated. But in many cases, the only way to recover the excess amount is to take the other driver to the Disputes Tribunal."

Separate events result in separate excess amounts. “For example, landlords find their rental properties are damaged – and because the damage has been caused on separate occasions, there is likely to be separate excess amounts to pay. Similarly if a car was scratched on two separate occasions, this could mean two lots of excess.”

“Excess is a form of self-insurance,” says Karen. “It helps to avoid too many small claims which would increase premiums for everyone who is insured. You can even choose to increase your excess and pay a lower annual premium, if you want to increase the “self-insured” component of cover.”

The amount of excess varies according to the type of insurance, and some policies will waive the excess in certain circumstances, for example some car policies do not require an excess for a broken windscreen.

“Your insurance policy will spell out when you must pay an excess and how much it will be. It is really important to read your policy document, and ask your insurer for more details.”

See our policy excesses information sheet.

www.iombudsman.org.nz

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news