Damage Waiver in the Hire Industry

04 Jun 2014 11:45 AM | Administrator . (Administrator)

The Hire Industry Association received information in February from Insurance Industry Consultant, who advised that “The practice of charging hirers additional fees to reduce insurance excesses or provide damage waiver cover is illegal unless you are a licenced insurer, who must comply with the ‘insurance prudential supervision Act 2010 (IPSA)’ and 2013 amendments

The HIANZ board of directors met with the consultant, to gain a better understanding of this potential issue, in order to provide clarity and advice to the membership.

The HIANZ board of directors reviewed all information available to them, and at that time issued a press release to members recommending that, “all companies providing damage waiver cover, or excess reduction options, should cease this activity immediately, or at least seek their own legal advice on this matter.”

Following the press release, HIANZ conducted a survey of the membership to identify the number of member companies potentially affected by this legislation.  The survey results were collated and used by HIANZ to seek a relevant legal opinion. 

A full copy of this release and legal opinion is available to download from the member’s only area of the HIANZ website. HIANZ strongly recommends that any member company that considers charging or including damage waiver, reads this report and seeks advice from their respective legal advisors. 
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