Credit Contracts and Consumer Finance Act 2003

Consumer credit contracts - Payments - Prepayments

52: Rebate of insurance

You could also call this:

"Getting a refund for insurance when you pay off a loan early"

Illustration for Credit Contracts and Consumer Finance Act 2003

When you have a consumer credit insurance contract as part of your consumer credit contract, you may get a rebate. The rebate is a proportionate amount of the premium you paid for the insurance. You can find out how this rebate is calculated by looking at the regulations. If the creditor arranged the insurance, you may be able to get a rebate. The creditor can recover the rebate from the insurer as a debt. You can consider the insurance to be arranged by the creditor if they are the insurer, or if they act as the agent of the insurer. The insurance is also considered to be arranged by the creditor if they receive a commission for the insurance, or if they require you to get the insurance from a particular insurer. In these cases, you may be able to get a rebate as per section 51. The rebate is based on the premium you paid for the insurance.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM213104.

This page was last updated on 1 January 2026 — View changes

Topics:

Money and consumer rights > Consumer protection

51: Amount required for full prepayment, or

"Paying off your debt early: what you need to pay"

52A: Rebate of repayment waiver, or

"Getting money back when you don't need a repayment waiver"

Part 2Consumer credit contracts
Payments: Prepayments

52Rebate of insurance

In the case of a consumer credit insurance contract that is financed under the consumer credit contract, an amount to be deducted under section 51 is an amount equal to a proportionate rebate of the premium paid under the insurance contract.
The rebate must be calculated using the procedure prescribed for the purposes of this section by regulations if regulations have prescribed a procedure.
An amount is to be deducted under subsection (1) only if the creditor has arranged the insurance.
If an amount is deducted under subsection (1), the creditor may recover the amount from the insurer as a debt due.
In this section, insurance is arranged by the creditor if 1 or more of the following applies:
the creditor or a related company of the creditor is the insurer:
the creditor or a related company of the creditor acts as the agent of the insurer in relation to the insurance:
the creditor or a related company of the creditor receives a commission in relation to the insurance:
the creditor requires the debtor to obtain the insurance from a particular insurer or particular insurers.

Notes

Section 52(1): replaced, on 6 June 2015, by section 35(1) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
Section 52(5)(d): amended, on 6 June 2015, by section 35(2) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).