Applies to new and renewing policies with a period of insurance starting on or after 22 May 2022
Welcome to AA Insurance
Thank you for choosing AA Insurance. When you
need us, we’ll get things sorted for you.
This policy document explains your insurance cover,
your responsibilities and how to make a claim.
Please read it carefully and keep it in a safe place.
How to contact us
Or if you would prefer to phone us:
- For sales, service and general queries, call us on 0800 500 213
- For claims queries, call us on 0800 500 216
The documents that make up your insurance contract
Your insurance contract consists of this policy
document and your most recent policy schedule.
Your policy document and policy schedule are
designed to be read together.
When read together, your policy schedule and policy
document outline your cover, which is the insurance
we agree to provide you. This cover is governed by the
limits, terms and conditions set out within this policy
document and your policy schedule.
Your policy schedule takes priority if the information
in this policy document and your policy schedule
is different.
We agree to provide cover as long as you have paid
your premium.
You have a cooling-off period if you change your mind
We provide you with a 21-day cooling-off period if you
change your mind. You can cancel your policy within
21 days from the day your policy started, as long as
you have not made a claim.
If you choose to cancel your policy within this period,
we will cancel your policy back to the policy start date
and refund you the full amount of any premium paid.
The cooling-off period does not apply if you renew
your policy.
If you have a concern
We value our customers and aim to deliver the best
service possible. We also appreciate and encourage
your feedback – the good and the bad. If you’re
unhappy with one of our policies, our service or a
decision on your claim, please tell us.
Often a quick conversation can help sort things out.
If we can’t reach a resolution, please let us know.
We can explain our complaints procedure to you,
and we have a Customer Resolution Service to help
you if needed.
Headings and defined words in your policy
We have used the headings in this policy document to
help guide you. These headings are purely descriptive
in nature. You should not rely on headings to interpret
the policy
Words in italics have specific definitions
Some words in this policy document are in italics.
These words have specific meanings. We have
explained them in the ‘Definitions’ section at the end
of this policy document.
The meaning of other common words in your policy document
We use some common terms throughout this policy document.
The meaning of these words are explained below.
‘We’, ‘us’ or ‘our’
When we say ‘we’, ‘us’ or ‘our’, we mean AA Insurance Limited.
‘You’ or ‘your’
When we say ‘you’ or ‘your’, we mean the insured and any other
persons insured.
Cancelling your policy
If you choose to cancel your policy
You may cancel your policy at any time, unless you
have made a claim.
If you cancel your policy outside the cooling-off period
and you have not made a claim, we will refund you
any amount we owe after the cancellation date.
We will deduct any cancellation fee shown on your
policy schedule from the amount we refund you.
If we choose to cancel your policy
We may cancel your policy at any time by notifying
you in writing. The cancellation will take effect on the
7th day after we have sent the notice. We will refund
you any amount we owe after the cancellation date.
What you are covered for
We will cover you for your defence costs and any fine
under an Act arising out of a proceeding, provided that:
- you first become aware of the proceeding during the period of insurance, and
- the proceeding is notified to us during the period of insurance or within 30 days after the end of the period of insurance, and
- the occurence has taken place on or after the continuity date.
Take-over
If, during the period of insurance a take-over occurs,
the cover provided is amended to apply only to
occurences taking place before the effective date of
the take-over.
Limits on what we will pay
The most we will pay on your behalf in respect of all
fines and defence costs arising out of all proceedings
in any one period of insurance is the limit of
indemnity shown in your policy schedule.
If a proceeding is covered only partly by this policy,
then the limit of indemnity shall be applied in the
following priority:
- to the fines and defence costs of an insured,
- to the fines and defence costs of any other persons insured.
Automatic extensions
The following extensions are automatically included in
your cover.
Acquittal
No excess will apply and we will reimburse any defence costs paid by you including where it was alleged that
you intentionally, knowingly, or wilfully committed an
occurence, in the event of:
- an acquittal of all of you, or
- a dismissal or a withdrawal of the prosecution of the offence without the payment of any fine by any one of you.
Reimbursement following a dismissal or withdrawal of
a prosecution will:
- occur 90 days after the date of dismissal or agreement to withdraw as long as no proceeding alleging the same or any related occurence is again brought within that time, and
- be subject to an undertaking by you that you will repay the reimbursement to us if a proceeding alleging the same or related occurence is brought after the 90-day period.
Advancement of defence costs
We will advance defence costs to you as and when
they are incurred before the final disposition of the
proceeding. Such payments will be repaid to us by you
severally, according to your respective interests, in the
event and to the extent that the proceeding is in fact
determined not to be covered or is resolved on terms or
in a manner that excludes it from cover.
Continuous cover
Where:
- you first became aware of any proceeding, or fact or circumstance as described in Making a claim - 'Notification of circumstance’, after the continuity date and before the period of insurance; and
- you do not notify us of such proceeding, or fact or circumstance, until a date during the period of insurance or within 30 days after the period of insurance;
then:
- in the absence of fraudulent non-compliance with the duty of disclosure or fraudulent misrepresentation by you in respect of such proceeding, fact or circumstance; and
- provided that we have been your statutory liability insurer continuously from and after the continuity date;
we will accept notification of such proceeding, or any
proceeding arising from such facts or circumstances,
during the period of insurance.
The cover provided will be in the terms of this policy
except that the applicable limit of indemnity and
excess will be as they were at the date when any of
you first became aware of the proceeding, facts,
or circumstances.
Additional extension
If you have chosen to include the following extension,
it will be shown on your policy schedule.
Defence costs
In the event of any proceeding which involves a charge
under Section 9 of the Law Reform Act 1936 and as a
consequence of which defence costs cannot be paid
under this policy module, then the policy is extended
to indemnify defence costs for all proceedings or a
series of proceedings as a result of or attributable
to one source or original cause and in the aggregate
during the period of insurance.
The most we will pay in any one period of insurance
under this extension is $250,000, unless an alternative
limit is shown on your policy schedule.
If you have cover under the Employers Liability policy
module, the most we will pay in any one period of insurance for defence costs under both modules is
$250,000, unless an alternative limit is shown on
your policy schedule.
Making a claim
This section explains what you need to do when you
make a claim.
Claims conditions
You must co-operate with us and give us any
information or help we ask for in relation to your claim.
As soon as you are aware of an event, circumstance,
proceeding or occurence you must comply with the
following conditions:
- take all reasonable steps to minimise the loss and prevent further loss
- do not admit responsibility for any loss, damage or liability
- do not, without our consent, incur any expense or negotiate, pay, settle, or make any agreement in relation to any claim.
As soon as possible you must also:
- tell us of the event and give full details and circumstances of what has happened, including details of everyone involved
- send us all relevant communications which you receive
- obtain our permission before you incur any expense, other than the reasonable cost of urgent work to prevent further loss
- keep damaged property for our inspection and allow us to inspect any building or other property where loss has occurred
- provide a detailed description of the lost, damaged or stolen items, proof of ownership and any other information or evidence that we may require
- let us at our expense and in your name to take any action necessary against any other party and to take over and conduct the defence and settlement of any claim against you
- provide all reasonable assistance and co-operate with us and our assessors, investigators, lawyers or anyone else we appoint to assist, in the making of your claim, its settlement and any defence of a potential claim against you or any action against anyone else.
Election to settle
We may settle any proceeding with your consent, or
where a senior counsel recommends settlement or a
guilty plea in accordance with the ‘Making a claim –
Senior counsel’.
If you withhold consent to such settlement or entry of
a guilty plea, the most we will pay for the proceeding is
the amount for which the proceeding could have been
settled plus defence costs incurred with our consent
up to the date the settlement or entry of a guilty plea
was recommended.
Conduct of claim
We will be entitled to take over and conduct in your
name, with full discretion in the conduct of the
proceedings, the defence of any proceeding, or the
prosecution in your name for your own benefit, of any
proceeding. If you do not agree with our decision to
settle a claim the terms of the Making a claim –
'Senior counsel’ will apply.
Notification of circumstances
If during the period of insurance you become aware
of any facts or circumstances that may give rise
to a proceeding against you, and such facts or
circumstances are notified to us during the period of insurance, any proceeding that may subsequently
arise out of those facts or circumstances will be
deemed to have been first made against you
during the period of insurance and notified to us
during the period of insurance in which the facts or
circumstances were notified.
Senior counsel
If you and we disagree as to whether a proceeding
should be settled or defended, a senior counsel will
be appointed by us to recommend whether to settle
or defend the proceeding. The senior counsel will take
into consideration the economics of the matter, the
fine and costs that are likely to be recovered by the
prosecuting authority, the likely defence costs and
your prospects of successfully defending the action.
We will pay the cost of the senior counsel’s opinion,
and this will be payable in addition to the limits of
indemnity shown in your policy schedule.
If you do not comply with these conditions
If you do not comply with any of these conditions,
we can:
- decline your claim
- recover from you what we have already paid.
You will have to pay an excess
An excess is the amount you must pay for each
individual event. We may deduct your excess from the
total settlement amount.
The total excess is determined by the circumstances of
your claim. You might have to pay more than one type
of excess when you make a claim. The excesses will be
noted in this policy document and/or in your
policy schedule.
If you claim under more than one policy with us for
loss, damage, or liability caused by a single event
or occurence at the same location, you will only
have to pay one excess. This will be the highest total
applicable excess. This does not apply to any loss
caused by natural disaster damage.
A series of events arising from any one cause during
any period of 72 consecutive hours will be treated as
one event for the purposes of determining the excess
you need to pay.
Instalment premiums
If you are paying your premiums by instalments,
we will deduct any unpaid instalments from any
payments that we make in relation to your claim.
What you are not covered for
This section explains what your policy does not cover.
These exclusions apply to all sections of this policy.
Deliberate or intentional breach
This policy does not cover you for any liability arising
directly or indirectly from, or in any way connected
with any proceeding that arises from:
- your deliberate or wilful breach of or failure to comply with or disregard for the provisions of any Act, or
- your deliberate or wilful failure to comply with or disregard for any lawful notice or order issued by any regulatory authority under any Act.
Third parties
This policy does not cover any liability arising directly
or indirectly from, or in any way connected with any
proceeding that arises from, the acts or omissions of
any third party (other than an employee) contracted
by you in accordance with your business.
Continuing offence
This policy does not cover you for that part of a fine for
a continuing offence under any Act which is imposed
for a period after which you knew, or should reasonably
have known, that an offence was being committed.
Prior claims and known circumstances
Except where cover is provided under Automatic
extension – ‘Continuous cover’, this policy does not
cover you for any of the following:
- any proceeding made, threatened or intimated against any one of you before the continuity date
- any proceeding arising directly or indirectly from any civil, criminal, or other proceedings with respect to any occurence committed or alleged to have been committed by any one of you before the continuity date, whether or not disclosed to us
- any proceeding arising directly or indirectly from any facts or circumstances:
- notified under any insurance that was in force before the inception of this policy, or
- known to any one of you before the continuity date and which might reasonably be expected by you to give rise to a proceeding.
Excesses and other insurance
This policy does not cover your excess on this or any
other policy.
This policy does not provide cover where cover is
provided by other insurance or by a warranty or
guarantee. We will not contribute towards any claim
made under any other policy.
Proceedings involving taxes
This policy does not cover you for any proceeding
that is directly or indirectly caused by or arises in
connection with a requirement to pay taxes, rates,
duties, levies, charges, fees or any other kind of
revenue under an Act.
Asbestos
This policy does not cover any proceeding directly
or indirectly caused by or arising out of or in
connection with:
- the inhalation of
- exposure to
- fears of the consequences of inhalation or exposure to
- cleaning up, removal of, or
- damage to or loss of use of any property arising out of
asbestos, asbestos fibres or any derivatives of asbestos.
Building defects or mould
This policy does not cover you for any proceeding that
is directly or indirectly caused by or contributed to, or
arises in connection with:
- the action or effects of micro-organisms, mildew, rot, decay, gradual deterioration, or any similar or like forms, in any building or structure, or
- the abating, testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, neutralising, remediating or disposal of, or in any way responding to or assessing the effects of micro-organisms, mildew, rot, decay, gradual deterioration, or any similar or like forms, in any building or structure.
Handling materials
This policy does not cover you for the handling or
disposal of materials by any person or organisation
acting on your behalf unless you have taken all
reasonable steps to ensure that the materials will be
handled or disposed of in a lawful manner.
Consequential loss or costs you incur
This policy does not cover:
- consequential losses of any kind, or
- costs or expenses you may incur to prove or help us with your claim.
This exclusion includes, but is not limited to, the following:
- loss of income
- loss of or reduction in value
- additional costs incurred
- your time or anyone else’s time or materials used
- inconvenience or disruption
- any other liability incurred.
Confiscation
This policy does not cover any loss, damage, personal injury, liability or prosecution of any type directly
or indirectly caused by, arising from, or involving
confiscation, nationalisation, requisition or destruction
of, or damage to property by order of government, public
or local authority (unless the order is given to control
any loss or damage that is covered by this policy).
War, terrorism or nuclear incidents
This policy does not cover for any loss, damage, personal injury, liability or prosecution of any type directly or
indirectly caused by, arising from, or involving:
- war, invasion, act of foreign enemy, hostilities, civil war or warlike operations (whether war is declared or not)
- mutiny, civil commotion assuming proportions of or amounting to a popular uprising, military uprising, rebellion, revolution, insurrection, military or usurped power
- any act, including but not limited to the threat, or use of violence, which from its nature and context is done for, or in connection with, political, religious, ideological, ethnic, or similar purposes including the intention to influence any government and/or to put the public or any member of the public in fear
- nuclear weapons, ionising radiations, or contamination by radioactivity from nuclear fuel or the combustion of waste from nuclear fuel. Unlawful or otherwise prohibited to insure This policy does not cover any loss, damage, personal injury, liability or prosecution of any type, directly or indirectly caused by, or arising from any act, event, occurrence or thing against which insurance is either:
- unlawful, or
- prohibited by any sanction, prohibition, or restriction under the laws or regulations of any jurisdiction applicable to us or our parent company or its ultimate controlling entity.
Unlawful or otherwise prohibited to insure
This policy does not cover any loss, damage, personal injury, liability or prosecution of any type, directly or
indirectly caused by, or arising from any act, event,
occurence or thing against which insurance is either:
- unlawful, or
- prohibited by any sanction, prohibition, or restriction under the laws or regulations of any jurisdiction applicable to us or our parent company or its ultimate controlling entity.
Cyber events
This policy does not cover loss, cost or liability, directly
or indirectly caused by, arising from, contributed to by,
or in any way connected to a cyber act or cyber incident.
However, we will not apply this exclusion for any of
the following:
- an event otherwise covered by this policy that causes a cyber incident
- loss resulting from an event otherwise covered by this policy that has been caused by a cyber incident or cyber act.
Electronic data
This policy does not cover loss, cost or liability, directly
or indirectly caused by, arising from, contributed to by,
or in any way connected to any of the following:
- electronic data being damaged, distorted, deleted, corrupted, altered, misinterpreted, or misappropriated
- error in creating, amending, entering, deleting or using electronic data
- inability or failure to receive, send, access or use electronic data for any period of time
- any loss of use, reduction of functionality, repair, replacement, restoration or reproduction of any electronic data
- the value of any electronic data
- a computer virus.
Communicable disease
This policy does not cover any loss, cost, any other
sum of any kind, or liability, directly or indirectly
caused by, arising from, contributed to by, or in any
way connected to any of the following:
- communicable disease
- the fear or threat of any communicable disease, whether it is actual or perceived
- actions by any person, entity or public authority to respond to, control, prevent or suppress communicable disease.
Any other sum of any kind also includes any increased
or additional costs or expenses of a claim that is
otherwise covered by this policy.
Communicable disease means any disease that can
be transmitted by any substance or agent, directly or
indirectly from one organism to another, including any:
- virus, bacterium, parasite, or any other organism
- any variation of the above, whether considered living or not.
Communicable disease also includes any Infectious
Disease or Quarantinable Disease as defined in
or declared under the Health Act 1956, future
amendments to the Act, or any replacement Act.
This exclusion applies, regardless of any other
contributing cause or event that happens at the
same time or some other time.
You must tell us about certain things
Some parts of this policy may cover other people
or companies or entities as well as you. To gain the
benefit of any cover under this policy they must
meet all the same conditions and obligations you are
required to meet. No claim will be payable where any
person covered under this policy does not meet any of
the terms and conditions.
Nothing in this policy affects the common law rights
of either party, including our right to avoid your policy
for non-disclosure. This means your policy will be
treated as if it never existed and any claim payments
must be returned to us.
You must disclose material information and give us
full and accurate statements
Your policy with us relies on the accuracy of the
information supplied by you, or any person on your
behalf. You must advise us of all material information
before the start of this policy and before each renewal
or variation of the policy.
You must also give us full and accurate information
and answer honestly, correctly and completely all
questions we ask you. Failure to do so entitles us to
deny any claim and to cancel this and any other policy
you have with us from the date the information should
have been provided.
You must tell us if there is a change in circumstances
You must tell us immediately of any change in
circumstances that have happened after the start of
this policy or that you know is going to happen and
which may increase any of the following:
- the amount of the risk
- the risk of loss, damage, or liability
- the risk of insuring you.
As a result of these changes in circumstances, or
if you fail to tell us immediately of any change in
circumstances, we may:
- change your policy terms and make alterations to your premium
- reduce cover or change limits
- not insure you for any loss, damage, or liability that happens after the date of the change in circumstances
- cancel your policy.
You must comply with certain conditions
You must not transfer your legal rights
You must not assign or transfer, or attempt to assign
or transfer this policy or your interest in this policy to
any other party.
You must avoid loss, damage or liability
You must take all reasonable care to avoid doing
anything that could result in a claim, and at your cost
and expense, must take reasonable steps to:
- ensure all property covered by this insurance is kept safe and protected from possible loss or damage
- maintain any protective devices, including but not limited to sprinkler systems and alarms, in an operational condition
- avoid any personal injury to any person or thing for which you could be held legally liable
- comply with all legal requirements for the safety of people or property.
Your policy is confidential
You will not disclose the existence of this policy, its
limits of indemnity, the nature of the insurance or the
premium payable under it to any person or entity who
is not an insured or persons insured except where and
to the extent:
- you are required to do so by law, or
- we give our consent in writing to such disclosure.
Severability and non-imputation of proposal
and policy
Cover under this policy is provided severally to each of you.
The proposal or submission will be construed to be a
separate application for cover by each of you.
For determining the availability of cover with respect
to proceedings made against any of you, no fact
pertaining to, no statement or declaration made in the
proposal or submission, no state of mind or knowledge
possessed and no failure to comply with the claims or
policy conditions by any one of you will be imputed to
any other of you.
How we administer your policy
Paying premiums
If your premium is overdue, we may refuse to make
any claim payments until your overdue premiums
have been paid.
If there is a change to your premium which remains
unpaid, or you do not pay the full amount of your
premium, we may reduce the period of insurance in
line with the proportion of the unpaid premium.
If your premium remains unpaid for 28 days, your
policy will automatically be cancelled and you will not
be sent a cancellation notice.
Sending notices
We will send any notice, policy schedule or other
written documents to your last known physical, postal
or email address.
Noting interested parties
By noting an Interested Party on your policy schedule,
you are authorising us to disclose your information
to them. If your policy schedule shows an Interested
Party, we may partially or fully settle your claim by
making a payment to them, fulfilling our obligations
under this policy. Anyone noted as an Interested Party
is not covered by this policy and cannot make a claim
under this policy.
Currency
All amounts referred to in your policy are expressed
in New Zealand currency and include Goods and
Services Tax (GST). We will pay all claims in
New Zealand currency.
Governing law
This policy is governed by New Zealand law, and the
New Zealand courts have exclusive jurisdiction over
any legal proceedings about it.
Definitions
Act
Any Act of the New Zealand parliament that is not
an Excluded Act in force at the commencement of
the period of insurance, or which comes into force
during the period of insurance, and any substitution
of, amendment to, replacement of or any regulation
made under such Act.
Any specific Act referred to also means any
substitution of, amendment to, replacement of and
any statutory regulation made under such Act.
Business
The business and occupation described on your
policy schedule.
Computer system
Any of the following systems:
- computer, communication system, or any other electronic device
- hardware, software, server or cloud
- any microcontroller.
A computer system also includes any system, output
or data storage device that is similar to those
mentioned above.
Continuity date
The date from which you have maintained
uninterrupted cover with us for this type of insurance.
Cyber act
One or more unauthorised, malicious or criminal acts
involving accessing, using, processing, or operating of
any computer system. This also includes any threat or
hoax of these acts.
Cyber incident
Any of the following:
- one or more errors or omissions involving accessing, using, processing, or operating any computer system
- one or more occurences when any computer system is partially or totally unavailable
- one or more failures to access, process, use or operate any computer system.
Damages
Amounts payable under any judgment against you
and/or settlements negotiated by us, including the
other party’s costs where applicable, and includes
interest on any judgment that accrues after entry of
the judgment and before we have paid, tendered or
deposited in court that part of the judgment that does
not exceed the appropriate limit of liability, limit of
indemnity or sum insured shown in your policy schedule.
Damages do not include fines, penalties, reparation,
or any other form of criminal sanction, non-pecuniary
relief, taxes or any payment deemed to be unlawful to
insure against.
Defence costs
All reasonable legal costs and expenses for expert
assistance (other than your wages, salaries, lost
earnings or fees) incurred by you or on your behalf with
our consent (which will not be unreasonably withheld)
in defending, investigating, monitoring, settling,
or appealing any proceeding made against you.
Electronic data
Facts, concepts and information converted to a form
useable for communications, display, distribution,
interpretation or processing by electronic and
electromechanical data processing or electronically
controlled equipment.
Employee
Any of the following while working for any insured in
connection with the business:
- a person under a contract of service or apprenticeship with any insured
- a person hired or borrowed by any insured
- a labour only sub-contractor.
Excluded Acts
The following Acts of the New Zealand Parliament and
any amendment to, re-enactment or substitution of,
regulation of, or other subordinate legislation made
under, such Acts:
- Arms Act 1983
- Aviation Crimes Act 1972
- Commerce Act 1986
- Crimes Act 1961
- Criminal Investigations (Blood Samples) Act 1995
- Hazardous Substances and New Organisms Act 1996 but only as it relates to new organisms
- Misuse of Drugs Act 1975
- Criminal Proceeds (Recovery) Act 2009
- Summary Offences Act 1981
- Land Transport Act 1998, or
- any other Act shown in your policy schedule as an Excluded Act.
Fine
Any monetary penalty or other monetary fine or costs
and disbursements assessed that may be payable by
you as a result of a conviction for an offence under an
Act arising out of an occurence.
A fine does not include any of the following:
- the cost or payment of any enforcement order, remedial order or compliance order
- any tax (including any fine or penalty resulting from the failure to pay any tax), rate, duty, or interest on such tax, rate, or duty, except GST
- any damages, restitution, compensation or reparation
- the value of any property subject to confiscation or forfeiture
- a fine, penalty or infringement fee paid or which becomes due to be paid under the Health and Safety at Work Act 2015, but does include reparation ordered as a result of a conviction under the Health and Safety at Work Act 2015
- any other monetary payment, penalty or fine deemed to be unlawful to insure against.
Insured
The person, company, or entity listed as ‘Who’s
insured’ on your policy schedule domiciled in
New Zealand.
Material information
Any information which might influence the decision
we make as to whether to provide insurance and if so
on what terms and at what premium.
Micro-organisms
Living things such as amoeba, bacteria, fungi, mould,
protozoa, and any similar or like forms.
Natural disaster
Earthquake, tsunami, volcanic activity, hydrothermal
activity, geothermal activity, subterranean fire, or fire
resulting from any of these.
Natural disaster damage
Any of the following:
- damage directly or indirectly caused by or resulting from natural disaster;
- damage occurring (whether accidentally or not) as the direct result of measures taken under proper authority to avoid the spreading of, or otherwise to reduce the consequences of, any such damage but does not include any damage for which compensation is payable under any Act.
Occurrence
Any act or omission that results in, or may result in,
an allegation of the commission of an offence
under any Act.
Period of insurance
When your policy starts, to when it ends. It is shown on
your policy schedule, unless the policy is ended earlier.
Personal injury
Any of the following:
- death, or physical external or internal bodily injury;
- illness, sickness, disease, debilitating or degenerative condition, or disability;
- mental injury, mental anguish, shock, or fright.
Persons insured
Any of the following:
- any person who holds the position of or performs the duties of director, executive officer, trustee, secretary, manager, partner, or who holds any other position as an employee of the insured while acting in that capacity
- the officers, committees and members of the insured's own canteen, social sports and child care facilities or welfare organisations, first aid, fire and ambulance services, pension fund management and administrative committees in their respective capacities as such
- any subsidiary company.
Policy schedule
The most recent policy schedule we have sent you which
includes, who’s insured, business description, business
address and the policy modules you have selected.
Proceedings
Any threatened or actual legal proceedings,
investigation, or inquiry that may give rise to
damages, the imposition of fines, and/or the incurring
of defence costs, and that is a result of:
- an occurence in respect of your business, or
- any of your employees sustaining personal injury in New Zealand while in the course of their employment in your business.
Regulations
Any regulations made under or framed in accordance
with any Act, or any regulation or bylaw of any
local authority.
Any specific regulation referred to also means any
substitution of, amendment to or replacement of
such regulation.
Reparation
An amount ordered by a New Zealand Court under
Section 32 of the Sentencing Act 2002 to be paid to
the victim of an offence. Reparation does not include:
- damages, court costs, fines, penalties, any other form of criminal sanction, non-pecuniary relief, taxes, any payment deemed to be unlawful to insure against, or
- your defence costs in relation to an offence.
Subsidiary company
Any of the following:
- any company that, at the inception of the period of insurance, by any applicable legislation, was or is deemed to be a subsidiary of the insured
- any company in which the company named in your policy schedule:
- owns or directly or indirectly controls more than fifty percent of the issued share capital
- controls the composition of the board of directors
- exercises effective management and control, either directly or through one or more of its subsidiary companies, or
- any other company whose accounts are consolidated into those of the company named in your policy schedule in accordance with the relevant New Zealand Accounting Standard.
Take-over
Either of the following events:
- the insured consolidates with, merges with, or sells all or substantially all of its assets to, another person, entity or group of persons and/or entities acting in concert, or
- the insured becomes a subsidiary of another entity by any applicable law.
Wages
The remuneration (including a due proportion of
bonuses, holiday pay, accident compensation
levies and other charges pertaining to wages) of all
employees other than those whose remunerations
are treated as salaries in your books of account.