Plain language law

New Zealand law explained for everyone

This page is about a bill. That means that it's not the law yet, but some people want it to be the law. It could change quickly, and some of the information is just a draft.

Natural Environment Bill

Enforcement and other matters - Enforcement - Insurance against fines unlawful

287: Insurance against fines unlawful

You could also call this:

"You can't use insurance to avoid paying fines under this law"

Illustration for Natural Environment Bill

If a contract tries to protect you from paying a fine under this proposed law, it will not work. You cannot use insurance to avoid paying a fine or an infringement fee. A court will not be able to help you with this kind of contract, even under sections 75 to 82 of the Contract and Commercial Law Act 2017. You must not enter into a contract that tries to protect you from paying a fine. You also must not use insurance to pay for someone else's fine or receive insurance to pay for your own fine. There is an exception - you can still get insurance for legal costs related to an activity under this proposed law. If you break this rule, you can be charged with an offence and fined up to $50,000 if you are an individual, or up to $250,000 if you are another type of person. In this section, a contract of insurance means what is defined in section 7(1) of the Insurance (Prudential Supervision) Act 2010.

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 It might be out of date or be missing some parts.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

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1534313.

This page was last updated on — View changes

Topics:
Money and consumer rights > Consumer protectionMoney and consumer rights > InsuranceCrime and justice > Police and safetyCrime and justice > Criminal law
Previous

286: Fines to be paid to local authority or EPA instituting prosecution, or

"Who gets the money when you pay a fine for breaking environmental laws?"

Next

288: Infringement offences, or

"Breaking rules can cost you money"

Part 6Enforcement and other matters
Enforcement: Insurance against fines unlawful

287Insurance 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.