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Disputes Tribunal Act 1988

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

34: Insurer may apply for claim to be struck out

You could also call this:

"Insurer can ask to stop a claim if it's not suitable for the Tribunal"

Illustration for Disputes Tribunal Act 1988

If you are involved in a claim with the Tribunal, your insurer can ask for the claim to be struck out. This can happen if the claim would not be within the Tribunal's jurisdiction when the amount your insurer is seeking is included. The Tribunal can strike out the claim if your insurer asks, or transfer it to the District Court if everyone agrees. When the Tribunal strikes out a claim or transfers it, they can ask your insurer to promise to start a new claim in a court to recover your losses. Your insurer must promise to do this quickly and fairly, and to pay you any money they recover that they do not have to pay you as your insurer. This promise is like a contract between you and your insurer. Any agreement that tries to change or avoid these rules has no effect, and you can find more information about these rules in section 28 and other related sections.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM133679.

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

34Insurer may apply for claim to be struck out

  1. Where, in any proceedings before the Tribunal,—

  2. a claim for relief to which section 28 applies is made; and
    1. the applicant's insurer becomes a party to those proceedings pursuant to section 28(4) or (5) or section 29(3); and
      1. the claim would not be within the jurisdiction of the Tribunal if the amount sought to be proved by the applicant's insurer under section 32(c) were included in the claim,—
          1. the Tribunal may,—
        1. on the application of the applicant's insurer, strike out the claim; or
          1. if the parties so agree, order that the proceedings be transferred to the District Court in its ordinary civil jurisdiction.

            1. In striking out a claim pursuant to subsection (1), or in ordering the transfer of a claim pursuant to that subsection, the Tribunal may require the applicant's insurer to give a written undertaking that—

            2. the insurer will, with due diligence and expedition, commence, and (except where the proceedings are settled) prosecute to trial and judgment, proceedings in an appropriate court to recover all recoverable losses of the applicant (including all losses for which the insurer is not liable to indemnify the applicant)—
              1. arising out of the cause of action on which the claim that is struck out or transferred is based; and
                1. that were sought to be recovered in that claim; and
                2. the insurer will not settle any proceedings commenced in accordance with the requirements of paragraph (a) unless that settlement makes provision for the payment, to the applicant, of an amount equal to all losses of the applicant—
                  1. that arose out of the cause of action on which the claim that is struck out or transferred is based; and
                    1. that were sought to be recovered in that claim; and
                      1. that would have been recoverable in the proceedings that are settled; and
                        1. for which the insurer is not liable to indemnify the applicant; and
                        2. before retaining any amount awarded in any judgment entered in any proceedings commenced in accordance with the requirements of paragraph (a), or any payment made pursuant to any settlement of those proceedings, the insurer will pay to the applicant an amount equal to all losses of the applicant that are recovered in those proceedings, or provided for in any settlement of those proceedings, and for which the insurer is not liable to indemnify the applicant.

                          1. An undertaking given by an insurer pursuant to subsection (2) is binding on the insurer, and is deemed to be a contract between the insurer and the applicant.

                          2. Any provision in any agreement (including one made before the commencement of this Act) that is inconsistent with any provision of this section or of sections 28 to 33, or that purports to exclude, modify, or restrict the operation of any such provision, shall be of no effect.

                          Notes
                          • Section 34(1): amended, on , by section 261 of the District Court Act 2016 (2016 No 49).
                          • Section 34(1)(e): amended, on , by section 261 of the District Court Act 2016 (2016 No 49).