Law of Insurance Warranties, The
Sections 5, 6, 9 and 11 Insurance Law Reform Act 1977 (New Zealand)
- (1) A contract of insurance shall not be avoided by reason only of any statement made in any proposal or other document on the faith of which the contract was entered into, reinstated, or renewed by the insurer unless the statement –
- (a) was substantially incorrect; and
- (b) was material.
- (2) Nothing in this section shall –
- (a) apply in respect of any contract of insurance embodied in a life policy; or
- (b) limit the provisions of sections 4 and 7.
- (1) For the purposes of sections 4 and 5, and notwithstanding any admission, term, condition, stipulation, warranty, or proviso in the application or proposal for insurance or in the life policy or contract of insurance, a statement is substantially incorrect only if the difference between what is stated and what is actually correct would have been considered material by a prudent insurer.
- (2) For the purposes of sections 4 and 5, and notwithstanding any admission, term, condition, stipulation, warranty, or proviso in the application or proposal for insurance or in the life policy or contract of insurance, a statement is material only if that statement would have influenced the judgment of a prudent insurer in fixing the premium or in determining whether he would have taken or continued the risk upon substantially the same terms.
- (1) A provision of a contract of insurance prescribing any manner in which or any limit of time within which notice of any claim by the insured under such contract must be given or prescribing any limit of time within which any suit or action by the insured must be brought shall –
- (a) if that contract of insurance is embodied in a life policy and the claim, suit, or action relates to the death of the insured, not bind the insured; and
- (b) in any other case, bind the insured only if in the opinion of the arbitrator or court determining the claim the insurer has in the particular circumstances been so prejudiced by the failure of the insured to comply with such provision that it would be inequitable if such provision were not to bind the insured.
Page 244(2) Where –
- (a) the insured under any contract of insurance to which subsection (1)(b) applies fails to give notice of any claim in any manner or within any limit of time prescribed by the contract; and
- (b) the cost of repairing, replacing, or reinstating any property when it fails to be met is greater than that which would have applied if the notice had been given in the manner or within the time so prescribed, –
The rest of this document is only available to i-law.com online subscribers.
If you are already a subscriber, click login button.Login