Monday, September 5, 2016


The headline here suggesting that New Zealand motorists are about to be hit hard certainly grabbed my attention.   Read it and you find out that the company that owns three of the insurance providers is to raise their standard excess from $300 to $400 in preference to jacking premiums so that those making claims bear the increased cost rather than passing them on to all policy holders.    A variation on user pays ... seems fair.

The article totally ignores the fact that policy owners can pick their own excess anyway.   Higher excess, reduced premium.   Pay your money and takes your chance.

So shock horror not ... and some in the media wonder why their 'profession' rates about the same as used car salesmen in the integrity stakes.


Paulus said...

You are quite correct - any policyholder can elect to up an excess.

All my policies for probably 20 years have had a higher than standard excess.
My House, Contents and Motor have been $400 for years.

Our medical is $2,000 for each of us for a 12 months period.

paul scott said...

There was a truly wicked story in the news the other day about IGM refusing to pay out on a home fire claim. The insured was apparently a dodgy character but the Insurance people had the most fanciful idea of how he arranged the fire.
Apparently the insured left his home computer on, which I think activated from a cell phone, stared a print action, but somehow lit a match and spilled some kerosene and burned the house down by design.
IGM just held out on the guy till he broke down, and started threatening them, then prosecuted him.
In Christchurch we hate IGM with a loathing.

Now for your friendly Southern Cross. A policy holder who reaches the age of 65 will notice his premium is now designed to wean him out. It worked for me. In two or three years they quadrupled the premium. In forty years I had never made a claim,for which the benefit I think was about 3% reduction.
I get travel insurance when I am overseas with Allianz, and I can assure readers they and Southern Cross Travel will fight you all the way till they dump you on the tarmac in New Zealand and leave your crippled body to the seagulls.
The Southern Cross scam, uses the name Southern cross, but there is no cross affiliation. Southern Cross is a bitch mongrel.

The best way for a person of any means is to start young with a separate insurance savings account. That will be ok for cars and home burglary, but maybe not a home.
Forty years of saving medical premiums at $1500 a year average is $60,000 plus investment return say #120,000.
The point is that Insurance companies do not really insure you properly, they take premiums.
Some people like my brother, can withstand most losses by his own means.

The Veteran said...

Paul ... two comments. Medical Insurance in NZL is age braided which is a bitch. Relatively cheap when you're young and past 65 and premiums go through the roof. Mrs Veteran and I had it for 30 years after I retired from the military and our one and only claim was for a relatively minor operation. When the premiums went berserk we canned it and put the money we had been paying a special purpose account which we use to pay all medical and dental bills. To date we are well ahead on the game.

As for SX Travel and I can't speak too highly about them. Have have to invoke the policy twice and their response was exceptional both times including when we landed at Heathrow from Bangkok minus luggage which ended up in Moscow. Basically they told us to go out and buy what we liked ... and we did and they ponied up without a murmur.

Adolf Fiinkensein said...


Having some experience from both sides of the fence, I can attest that insurance companies do not set out to harass claimants. As you have found, they usually are obliging and friendly. However, if they detect a whiff of a try on they will dig their heels in and then some. Attempted insurance fraud is rampant.

And that's how it should be.