Plain language law

New Zealand law explained for everyone

Crown Entities Act 2004

Operation of Crown entities - Statutory entities - Protections from liability of members, office holders, and employees

125: Breach of indemnity and insurance limits

You could also call this:

"Paying back money if you get too much indemnity or insurance"

If you are a member, office holder, or employee of a statutory entity and you get indemnity or insurance that is not allowed by this Act, you must pay back the cost of that indemnity or insurance. You only pay back the amount that is more than what you are allowed to have under this Act. The entity can take you to court to get the money back, and you will have to pay it as a debt.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

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=DLM330377.

Topics:
Government and voting > Government departmentsBusiness > Industry rules
Previous

124: Saving of judicial protections from liability, or

"Judges are protected from being sued when making decisions in groups, just like in court."

Next

126: Definitions for protections from liability, or

"What special words mean to help keep people safe from being sued"

Part 3Operation of Crown entities
Statutory entities: Protections from liability of members, office holders, and employees

125Breach of indemnity and insurance limits

  1. A member, office holder, or employee who is indemnified or insured by a statutory entity in breach of this Act must repay to the entity the cost of providing or effecting that indemnity or insurance cover, to the extent that the indemnity or insurance cover exceeds that which could have been provided or effected under this Act.

  2. The entity may recover the amount as a debt due in a court of competent jurisdiction.