NEW RESIDENTIAL TENANCIES AMENDMENT ACT 2019 PASSED
On the 30th July, new tenancy legislation was passed which will affect landlords and tenants in a number of ways.
The RTA Act significantly impacts on the rights and obligations of both landlords and tenants in three areas:
Liability for careless damage to rental premises causes by a tenant
Management of methamphetamine contamination in residential rental premises; and
The use of ‘non-residential’ premises for residential use
The amendments take effect on the 27th August 2019.
If you are a landlord, there are some key points for you to be aware of in the new RTA Act;
Tenants and people they are responsible for are liable for the cost of damage, through careless act or omission, but limited to the lessor of the landlords insurance excess or four weeks rent;
Landlords need to include insurance information as part of new lease agreements or make it available on request for existing lease agreements
Any changes to insurance policies need to be provided to the tenant;
New provisions are introduced to enable landlords to sample, test and potentially terminate leases in relation to methamphetamine contamination.
The RTA Act does not apply to property that is not lawfully able to be used for residential purposes, therefore not being a ‘residential premises’ for example rental of a property without a building or a resource consent.
A full copy of the amendment can be found here.
SURVEY SHOWS 24% OF DIRECTORS DON’T HAVE INSURANCE
Insurance Council of New Zealand - 16 August 2018
Recently, the Institute of Directors released a report which highlighted that 24% of executive and non-executive directors do not have directors’ and officers’ liability (D&O) insurance.
That is one in four directors who could have to meet damages, legal expenses, fines and costs incurred by their organisation from their own pocket, all because they don’t have the right insurance cover in place. To read the full article by the Insurance Council of New Zealand click here
CYBER SECURITY TIPS
NZI/Deloitte - February 2018
Last year one in five New Zealand SMEs experienced a cyber-attack, so it's essential to be prepared. Our friends at NZI & Deloitte have developed this Cyber security self-assessment, which outlines best practices to help you reduce the chance of an incident occurring.
To read the full document, click on the image to the right.
Fines of up to £17m launched for uk firms with poor cyber-security
BBC News - 29 January 2018
Companies that fail to protect themselves effectively from cyber-attacks will face fines of up to £17m, the UK government has announced.
Energy, transport, water and health companies are expected to have 'the most robust safeguards'.
Regulators will be able to inspect cyber-security at such companies, under a new government directive.
In August last year, former Digital Minister Matt Hancock said imposing the fines would be a "last resort".
At the time, the penalties were part of plans subject to a consultation that has now been completed.
"We want our essential services and infrastructure to be primed and ready to tackle cyber-attacks and be resilient against major disruption to services," said the current Minister for Digital, Margot James.
Guidance for companies working in the relevant sectors has been published by the National Cyber Security Centre.
The government said the new rules would be effective from 10 May and cover breaches including disruptive ransomware outbreaks, such as the WannaCry attack that hit many NHS facilities in May 2017.
"With so many nations, including the UK, now relying on digitalisation, hackers may look to cause mass disruption by targeting critical national infrastructure," said Jens Monrad, at cyber-security company FireEye.
"This could be systems, which the UK government and citizens rely on, like healthcare systems, water supply and electricity."
Mr Monrad added FireEye had recently detected new strains of malicious software designed to manipulate industrial safety systems.
mitigating the threat of cyber breach
The downloadable PDF displayed here features expert opinion from the Lloyds market regarding the threat of a cyber breach, and is a recommended read on what businesses can do to prepare for and mitigate an attack. While it is not possible to be 100% secure from a cyber-attack, there are a number of measures companies can take to reduce the risk of it happening - and to help ensure you minimise the consequences and recover more quickly should a breach occur. Insurance is part of this solution.
Frank's Insurance A-Z
Let's breakthrough the jargon of insurance and provide some straightforward explanation to some commonly used insurance terms.
Latin term meaning 'From the Beginning'. An insurer can void an insurance policy ab-initio if they have been lied to.
B: BASIS OF SETTLEMENT
The basis of settlement which your insurer will settle your claim, for example to either rebuild, repair, replace or provide a cash settlement/payment.
Replacement - to replace a lost or destroyed item with a new one, or repair the item so it is as new as practically possible.
Indemnity – putting you back in the same financial position you were in prior to the loss occurring, so that you are no better or worse off than you were immediately before the loss. The settlement is based on how much you would pay for the item second-hand or the replacement cost of the item less an allowance (depreciation) for age and use. Indemnity value may also be referred to as Market Value or Present Day value.
Cost, Insurance and Freight (CIF) requires the seller to arrange for the carriage of goods by sea and provide the buyer with the necessary documentation to obtain the goods from the carrier once arrived at port of destination.
D: DUAL WAGES
A form of insuring your wages on a dual basis.
You elect an initial period of say 12 weeks where you would pay your employees 100% of their wages. Then for the balance of your indemnity period your wages would be partially covered at the elected percentage for example 40% for remaining 40 weeks to ensure key staff are kept on the payroll.
Amending your policy during the policy period.
For example, removing a vehicle you have sold a few months after your policy renewed.
A form of insurance covering businesses for losses caused by the dishonest or fraudulent acts of its employees.
G: GROSS PROFITS
A type of business interruption insurance that provides funds in the amount of profit lost if any insurable event, such as property damage, occurs.
H: HOLD HARMLESS
A contract between two parties designed to release one or both parties from legal claims. For example, one party agrees not to hold the other party liable for any expenses, damages, or losses arising from a transaction or activity between the two parties.
I: INDEMNITY v INDEMNIFY
Indemnity also known as present day value is what the item is worth in today’s terms, based on replacement cost less an allowance (depreciation) for age and condition/use.
Indemnify is to provide compensation to an entity, person or insured for injury, loss or damage.
The location determining which courts have the power or authority to decide a particular decide on a particular matter.
K: KNOCK FOR KNOCK
An agreement between two insurance companies whereby, when both companies’ policy holders have a motor vehicle accident (in the same event), each insurer pays the costs incurred by its own policy holder regardless of who was at fault.
L: LOSS RATIO
The ratio of total losses (claims paid) divided by the total premiums earned.
M: MATERIAL FACT
Information where the insurer may have made a different decision about either: (a) accepting the insurance or (b) setting the terms of the insurance, including the premium and excess, if they had known that information.
Failure to use a degree of care considered reasonable under a given set of circumstances.
O: OCCURANCE WORDING
A policy which protects you from any covered incident that ‘occurs’ during the policy period, regardless of when the claim is filed. Will respond to claims that come in even after the policy is cancelled, so long as the incident ‘occurred’ during the period in which coverage was in place.
This differs to a ‘Claims Made’ wording which is triggered when a claim is made against the insured, regardless of when the wrongful act took place.
P: PROXIMATE CAUSE
The defining issue or event that resulted in the overall loss.
Q: QUANTIFIABLE LOSS
An award, typically of money, to be paid to a person as compensation in relation to a loss or injury. For example, repair or replacement of damaged property, lost earnings (both historically and in the future), loss of irreplaceable items and so on.
A provision found in some liability policies that eliminates cover for claims produced by wrongful acts that took place prior to the specified date (being the retroactive date), even if the claim is made during the period of insurance.
The right for an insurer to ‘step into your shoes’ and legally pursue another party to recover the costs incurred in relation to damage that they caused to your property.
A civil wrong such as negligence or nuisance
U: UBERRIMA FIDES
Latin term meaning Utmost Good Faith. This forms the basis of all insurance dealings between insurers and clients.
Replacement value refers to an amount required to replace an item or structure.
Indemnity value puts you back in the same financial position you were in prior to the loss occurring, so that you are no better or worse off than you were immediately before the loss. The settlement is based on how much you would pay for the item second hand or the replacement cost of the item less an allowance (depreciation) for age and use.
A statement of fact given to an insurer by the insured concerning the insured risk which, if untrue, will void the policy.
X: EX GRATIA
A payment made from a sense of moral obligation rather than because of any legal requirement. For example, an insurer may agree to pay costs to a client that has suffered a loss which is not covered under the policy wording.
The worlds specialist insurance and reinsurance market located in the City of London. It is not an insurance company but rather a market providing specialist insurance services to businesses in over 200 countries.
Z: EXCLUSION ZONE
An area or zone where insurance cover is unable to be obtained.