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Planning Bill

Enforcement and other matters - Enforcement - Penalties

261: Insurance against fines unlawful

You could also call this:

"You can't buy insurance to pay for fines under this law"

Illustration for Planning Bill

If you have a contract that says you will be paid back if you get a fine under this proposed law, that contract is not valid. You cannot go to court to try to get relief for that contract, even if you use sections 75 to 82 of the Contract and Commercial Law Act 2017. You must not enter into a contract like this or offer to do so. If you break this rule, you can get in trouble. You could be fined up to $50,000 if you are an individual, or up to $250,000 if you are another type of person. This rule does not apply to costs for legal or remediation work related to an activity under this proposed law. A contract of insurance in this section means what it says in section 7(1) of the Insurance (Prudential Supervision) Act 2010. You cannot use insurance to pay for someone's fine or infringement fee under this proposed law. You also cannot pay someone to cover their fine or infringement fee, or receive payment to cover yours.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1534329.

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Topics:
Money and consumer rights > Consumer protectionMoney and consumer rights > InsuranceCrime and justice > Police and safetyCrime and justice > Fines and penaltiesBusiness > Industry rulesBusiness > Insurance and risk management
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260: Fines to be paid to local authority or EPA instituting prosecution, or

"Who gets the money when you pay a fine for breaking the law"

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262: Infringement offences, or

"Breaking planning rules: what you need to pay"

Part 6Enforcement and other matters
Enforcement: Penalties

261Insurance 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. through a contract of insurance—
          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.

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

              3. A person who contravenes subsection (2) commits an offence and is liable on conviction,—

              4. for an individual, to a fine not exceeding $50,000:
                1. for any other person, to a fine not exceeding $250,000.

                  1. In this section, contract of insurance has the meaning given in section 7(1) of the Insurance (Prudential Supervision) Act 2010.