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Resource Management Act 1991

Declarations, enforcement, and ancillary powers - Offences

342A: Insurance against fines unlawful

You could also call this:

"You can't have a contract that pays your fines for breaking environmental rules."

Illustration for Resource Management Act 1991

If you have a contract that says you will be paid back if you get a fine under the Resource Management Act, that contract is not valid. You cannot get help from a court to make the contract work, even if you use sections 75 to 82 of the Contract and Commercial Law Act 2017.

You must not enter into a contract that says you will be paid back if you get a fine, or offer to pay someone back if they get a fine. You also must not accept money from someone to pay back a fine, or pay money to someone for a fine.

There is an exception to this rule - you can still get insurance to cover the costs of fixing any problems or paying for a lawyer if you are doing something under the Resource Management Act.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1495144.

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342: Fines to be paid to local authority instituting prosecution, or

"When someone breaks the law, the money they pay as punishment goes to the local council that caught them."

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"This law used to talk about stuff that ships let out into the water, but it's not used anymore."

Part 12Declarations, enforcement, and ancillary powers
Offences

342AInsurance against fines unlawful

  1. To the extent that a contract of insurance indemnifies or purports to indemnify a person for the person’s liability to pay a fine or an infringement fee under this Act,—

  2. the contract is of no effect; and
    1. no court or tribunal has jurisdiction to grant relief in respect of the contract, whether under sections 75 to 82 of the Contract and Commercial Law Act 2017 or otherwise.

      1. A person must not—

      2. enter into, or offer to enter into, a contract described in subsection (1); or
        1. indemnify, or offer to indemnify, another person for the other person’s liability to pay a fine or an infringement fee under this Act; or
          1. be indemnified, or agree to be indemnified, by another person for that person’s liability to pay a fine or an infringement fee under this Act; or
            1. pay to another person, or receive from another person, an indemnity for a fine or an infringement fee under this Act.

              1. The prohibition in this section against insurance does not apply to legal or remediation costs connected with an activity under this Act.

              Notes
              • Section 342A: inserted, on , by section 82 of the Resource Management (Consenting and Other System Changes) Amendment Act 2025 (2025 No 41).