Code of Insured Persons’ Rights – what’s being proposed?

New Zealanders have 24 days left before the closing of submissions to Toka Tū Ake EQC’s consultation on the Code of Insured Persons’ Rights. What exactly are the rights – there are nine of them – that are being proposed by what will soon be Toka Tū Ake – Natural Hazards Commission?

A draft of the code has been published to allow the public to submit their feedback either online, over the phone, or in writing until 5pm on Nov. 30. Submissions can be made anonymously.

Proposed rights of insured persons

A requirement of the new Natural Hazards Insurance Act 2023 (NHI Act), the to-be-finalised code sets out the following rights of insured persons:

1. You have the right to be treated with dignity and respect.
2. You have the right to effective communication.
3. You have the right to be fully informed.
4. You have the right to have your personal information protected and respected.
5. You have the right to support.
6. You have the right to have your culture, values, and beliefs respected.
7. You have the right to complain.
8. You have the right to have a decision made about a breach of the code independently reviewed.
9. You have the right to have certain claim disputes referred to an external dispute resolution scheme.

The abovementioned rights are found under Part 2 of the draft code. Other sections span the complaint procedure, available remedies, and the subject of dispute resolution, among other things.

Commission’s obligations

Under the code, the corresponding obligations of the commission are outlined alongside the rights of insured persons. 

Below are the multiple obligations for every listed right.

1. We will treat you with honesty and courtesy. We will act transparently and with integrity. We will listen to you and consider your views.
2. We will communicate with you openly, honestly, and effectively. We will respond to your questions in a timely manner. We will provide you accessible information in a timely manner.
3. We will provide information on your rights under this Code. We will provide information on how to make a natural hazard damage claim. We will provide information about our processes, your claim and cover, your entitlements, and your options if you do not agree with our decisions, in accordance with all relevant legislation. We will keep you updated on expected time frames.
4. We will comply with all relevant legislation relating to personal information and privacy. This includes: i) We will advise you when and why your personal information is being collected; ii) We will keep your personal information safe and secure; iii) We will give you access to the personal information we hold about you and respond to requests to correct any mistakes or inaccuracies; iv) We will use and share your personal information appropriately.
5. We will provide you with an interpreter or other suitable assistance when necessary. We will welcome you and your support person(s) to engage with us provided that the safety of all can be assured.
6. We will be respectful of your culture, values, and beliefs. We will be respectful of Māori culture, values, and beliefs.
7. We will inform you about the complaint procedure, and the expected timeframes for dealing with complaints. We will act in accordance with the complaint procedure.
8. We will inform you about the review procedure, and the expected timeframes for dealing with reviews. We will act in accordance with the review procedure.
9. We will inform you about the dispute resolution scheme process.

“These rights and obligations will support us to fulfil the purpose of the Code, which is to ensure claims are managed and settled in a fair and timely manner,” Toka Tū Ake EQC, which provides cover against natural hazard damage to homeowners with a current home insurance policy that includes fire insurance, said in its consultation guidance.

Early next year, the Crown entity will announce how the consultation responses have contributed to the development of the code, the final version of which will be presented to the minister responsible for the Earthquake Commission for approval.

Replacing the Earthquake Commission Act 1993, the NHI Act will take effect in July 2024.

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