barryb Posted August 31, 2021 Share Posted August 31, 2021 This person took a cheap form of cover, gets burnt & sooks, FFS State Insurance tells woman floods not included in 'natural disaster' cover for her car | Stuff.co.nz All insurers define Natural Disaster as EQ,Tsunami, related type events, failure to read a policy wording is costly. Expecting the world and not paying for it is foolhardy. 1 Quote Link to comment Share on other sites More sharing options...
ngakonui grass Posted August 31, 2021 Share Posted August 31, 2021 I feel a ""Give a little"" campaign may be on the horizon. Sadly i can't contribute as i spent my money on getting a real insurance policy. Quote Link to comment Share on other sites More sharing options...
Hesi Posted August 31, 2021 Share Posted August 31, 2021 Maybe not There is a new Code Of Practice out in 2020 for the insurance industry. As part of the code, there is an obligation on the company and it's agents selling the insurance to ensure they have explained the ramifications of the policy in full and not sell a person a policy that is not suited to them Quote Link to comment Share on other sites More sharing options...
Globederby19 Posted August 31, 2021 Share Posted August 31, 2021 1 hour ago, barryb said: failure to read a policy wording is costly. 18 minutes ago, Hesi said: it's agents selling the insurance to ensure they have explained the ramifications A two edged sword. I have first hand experience of agents working on commission and bonuses trying to get a quick sale (intentionally or not) . Why has it taken until 2021 to get this sort of Code implemented when in fact Insurance has been around since the 14th Century . Quote Link to comment Share on other sites More sharing options...
barryb Posted August 31, 2021 Author Share Posted August 31, 2021 26 minutes ago, Hesi said: Maybe not There is a new Code Of Practice out in 2020 for the insurance industry. As part of the code, there is an obligation on the company and it's agents selling the insurance to ensure they have explained the ramifications of the policy in full and not sell a person a policy that is not suited to them Having spent many yrs in a past life in this industry I am fully aware at how thick Joe Public is, how very farking convieniently they bullshit. This girl bought a policy & it is designed to cover Fire, Theft, & Damage to 3rd parties, it also has a $3000 policy extension to cover an uninsured person hitting your car, plus it has Natural Disaster cover which is the code name Insurers use for Earthquake as the Govt EQ policy only covers House & Contents. Quote Link to comment Share on other sites More sharing options...
barryb Posted August 31, 2021 Author Share Posted August 31, 2021 6 minutes ago, Globederby19 said: A two edged sword. I have first hand experience of agents working on commission and bonuses trying to get a quick sale (intentionally or not) . Why has it taken until 2021 to get this sort of Code implemented when in fact Insurance has been around since the 14th Century . As mentioned above, I have seen the other side where the fraud by customers is massive, its runs across all walks of life. It is bloody common in Car Insurance & Travel Insurance, also non disclosure in Medical/Life policies is huge, failure to be honest at inception around smoking, pre existing conditions & your weight is rife. Quote Link to comment Share on other sites More sharing options...
Hesi Posted August 31, 2021 Share Posted August 31, 2021 Yes, most certainly the other side, which the code is designed to give more protection to the insurers Why had they not developed a code earlier?, Do turkeys vote for an early Xmas Quote Link to comment Share on other sites More sharing options...
Turny Posted August 31, 2021 Share Posted August 31, 2021 Uberrimae Fidei is the rule, applies to both parties. Have little sympathy for the young lady, the extent of cover is specific and clear. A convenient ...I did not understand ... is not utmost good faith. The low premium very clearly discounts the extent cover The Insurance Code of Conduct simply enforces the utmost good faith rule against the Underwriter. Virtually all Fire and General policies are written in plain English, with little jargon present. 1 Quote Link to comment Share on other sites More sharing options...
Maximus Posted August 31, 2021 Share Posted August 31, 2021 1 hour ago, barryb said: Having spent many yrs in a past life in this industry I am fully aware at how thick Joe Public is, how very farking convieniently they bullshit. This girl bought a policy & it is designed to cover Fire, Theft, & Damage to 3rd parties, it also has a $3000 policy extension to cover an uninsured person hitting your car, plus it has Natural Disaster cover which is the code name Insurers use for Earthquake as the Govt EQ policy only covers House & Contents. so why don't the Insurance Companies call it something more specific rather than the very broad phrase Natural Disasters? Max suspects the answer is, they want the purchaser to think they're covered for a wide range of Natural Disasters when there are only a few. Does the policy draw attention to specific exclusions such as 'storm or flooding' ? Quote Link to comment Share on other sites More sharing options...
Turny Posted August 31, 2021 Share Posted August 31, 2021 The answer Max is within the definitions in the Policy document. Policies are in plain English and it will record the specifics of cover. Commercial Policies refer to Natural Disasters which is defined as Earthquake. Domestic Policies do not mention Natural Disaster in the policy wordings and specifically refer to Earthquake znd the EQC Act. Clouding the issue is the media's mis use of the words Natural Disaster. In very general terms insurance policies confirm what is covered then exclude items circumstance where the cover does not apply For example accidental damage to your vehicle is covered, then they say no cover applies if the vehicle is driven by a drunk driver. Cover granted and specific exclusion advised. Here in this matter there would likely be no mention if storm or floods or tempest as an exclusion as they simply aren't covered Trust this helps 1 Quote Link to comment Share on other sites More sharing options...
barryb Posted August 31, 2021 Author Share Posted August 31, 2021 Turny obviously has an insurance background, but yes bang on. The ignorance people display around something that protects there greatest physical asset (house) is staggering, people spend far more time looking at the cost rather than what is covered. Life insurance is the most bizzare of all, you are hated when selling the policy, but come an unforseen event all of a sudden you become the most important person ever. Quote Link to comment Share on other sites More sharing options...
Turny Posted August 31, 2021 Share Posted August 31, 2021 (edited) 44 years Barry at Senior Exec level last 25 years Now retired but Consult and Advocate "now and then", specialising in my area of expertise claims advocacy and policy interpretation (legal) My stock standard advice to anyone is use a Broker and don't get hung up on premium cost, you want a predictable outcome so buy it. Frankly 95% of the time Brokers will be cheaper than direct purchasing Edited August 31, 2021 by Turny 1 1 Quote Link to comment Share on other sites More sharing options...
Hesi Posted August 31, 2021 Share Posted August 31, 2021 I will check with my daughter in law in the morning, but in talking to her previously, I understand the onus has moved towards the insurance companies selling policies that are fit for purpose She currently works quite high up in insurance Quote Link to comment Share on other sites More sharing options...
Turny Posted August 31, 2021 Share Posted August 31, 2021 (edited) Hesi That's controlled by the FMA, Financial Markets Authority, specifically to disclosure ... and the duty of disclosure works both ways and involves Agency law, sounds complex but it is rather simple Edited August 31, 2021 by Turny Quote Link to comment Share on other sites More sharing options...
barryb Posted August 31, 2021 Author Share Posted August 31, 2021 The reason for posting this story is that it gets tiresome the lack of personal responsibility people take. She bought a cheap policy for a specific purpose, an event she didn’t foresee has occurred & now she wants to blame others for her lack of foresight. Thats like backing for a win only for the horse to run 2nd & sooking at the TAB for not forcing you to take a place on it. Then saying first is a placing, so running 2nd is a placing so pay me my money. Quote Link to comment Share on other sites More sharing options...
mardigras Posted August 31, 2021 Share Posted August 31, 2021 (edited) Best advice for those that can afford it, self insure - or fully insure over a self acceptable limit. Many individuals can probably not afford to do that, but like punting, it is about risk/cost versus chance. Choose an excess of $10k or $100k etc. Individuals probably don't realise it but they self insure anyway to a degree. If you take out car rental insurance to cover excess, then you are assessing the risk of the event against the cost of the event (coupled with the likelihood of the event). Insurance companies are doing the same thing (with the cut in their favour which you would expect). Change the factors to where the alignment of those factors fits in best with your own personal circumstance. I self insure massively around things like house contents and rental car. I'll risk getting robbed, items broken and pay for that myself - especially for items classified as of high value. I do tend to insure my house due to the risk level. In saying that, if you self insure, you shouldn't really grumble when things don't work out. You are essentially putting the premium away to cover the event and hope that overall, the event occurs less (cost wise etc) than the premium would have otherwise cost. Just like punting. Which is what insurance companies are essentially doing - assessing the risk and the chance, and setting a premium (cost) for that based on making some money (like a bookie does). Edited August 31, 2021 by mardigras 1 Quote Link to comment Share on other sites More sharing options...
barryb Posted August 31, 2021 Author Share Posted August 31, 2021 Exactly Mardi, but you are not the sort to sook life’s unfair when the decision you made doesn’t work out as planned. 1 Quote Link to comment Share on other sites More sharing options...
Turny Posted August 31, 2021 Share Posted August 31, 2021 Mardi, a good Broker would very much look at and report on self insuring and first loss cover options which are commonly opted for these days, particularly by large trucking and property ownership companies. 1 Quote Link to comment Share on other sites More sharing options...
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