Reserve Bank of New Zealand Act 2021

Operation of Reserve Bank - Protections from liability

188: Breach of indemnity and insurance limits

You could also call this:

"Paying back money if you break the Bank's rules about insurance and protection"

Illustration for Reserve Bank of New Zealand Act 2021

You are protected by the Reserve Bank of New Zealand Act 2021. If you get indemnity or insurance from the Bank when you are not supposed to, you must pay back the cost. You have to pay back the amount that is more than what you are allowed to have under the Act. You can be asked to repay this money in court. The Bank can take you to court to get the money back. This is because you got more indemnity or insurance than you were allowed to have. The court can make you pay the money back to the Bank. This is like paying back a debt that you owe. You have to pay back the money because you broke the rules of the Act.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS296249.

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

Topics:

Money and consumer rights > Banking and loansBusiness > Industry rules

187: Insurance for liability, or

"Insurance to protect Bank workers if they make a mistake on the job"

189: Crown indemnities in relation to statutory management, or

"The Crown protects people who work honestly as statutory managers or help with statutory management."

Part 4Operation of Reserve Bank
Protections from liability

188Breach of indemnity and insurance limits

A person referred to in section 182(1)(a) to (f) who is indemnified or insured by the Bank in breach of this Act must repay to the Bank 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.
The Bank may recover the amount as a debt due in a court of competent jurisdiction.

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2004 No 115 s 125