Disputes Tribunal Act 1988

Proceedings of Tribunal - Special provisions relating to claims where applicant or respondent insured

30: Insurer may abandon rights of subrogation

You could also call this:

"Insurer can give up right to claim back money"

Illustration for Disputes Tribunal Act 1988

You can abandon your rights of subrogation when you lodge an acknowledgement with the Tribunal under section 29(1). This means you give up your right to claim back money from someone else. You can do this for a specific amount of money. When you abandon your rights of subrogation, you are also giving up part of your claim. The Tribunal's approval of an agreed settlement under section 18(3) or an order will mean you are no longer liable for the amount you abandoned. This also applies to any other person involved in the agreed settlement or claim. You will not be liable to your insurer for the abandoned amount. Other people involved in the settlement or claim will also not be liable for the abandoned amount.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM133675.

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Part 3Proceedings of Tribunal
Special provisions relating to claims where applicant or respondent insured

30Insurer may abandon rights of subrogation

  1. In any acknowledgement lodged with the Tribunal under section 29(1) an insurer may, in respect of such sum as is specified in the acknowledgement, abandon the exercise of its rights of subrogation in relation to the cause of action that is the subject of the claim.

  2. Where, pursuant to subsection (1), an insurer abandons its rights of subrogation in respect of a specified sum,—

  3. the applicant shall be deemed to have abandoned so much of the applicant's claim as is equal to that specified sum; and
    1. the approval of an agreed settlement under section 18(3) or, as the case may require, an order of the Tribunal under this Act or any other enactment, in relation to the claim, shall operate to discharge from liability in respect of the amount so abandoned—
      1. the applicant, so far as the applicant might otherwise be liable to the applicant's insurer for that amount; and
        1. any other person who is a party to that agreed settlement, or against whom the claim and the subsequent order are made, as the case may require.
        Notes
        • Section 30(1): amended, on , by section 261 of the District Court Act 2016 (2016 No 49).