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

 

Drones: First Certificate Issued Under New UAV Rules

Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say the first certified flight of an unmanned helicopter under new aviation rules is a great example of how they can enable commercial use. More>>

ALSO:

GE Swedes And Cow Deaths: Plant Analysis Backs Up Earlier Advice

The industry body is recommending that farmers do not feed Herbicide Tolerant (HT) swedes to cows in spring when the animals are in late pregnancy or early lactation. DairyNZ is also advising caution if farmers are considering other leafy varieties. More>>

ALSO:

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news