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

 

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

The Nation: Call For Cross-Party Auckland Housing Plan

Penny Hulse calls for cross-party accord on Auckland housing because “it’s too important to score political points on”. More>>

ALSO:

Flu Season: Overcoming Vaccination Reluctance

While research shows that 40% of New Zealand businesses offer free or subsidised flu vaccinations to employees this time of year, HR professionals say persuading staff to participate is the biggest challenge. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news