Case Studies

The following case summaries highlight common issues and consumer tips. Cases can be filtered by subject below and names have been changed to protect confidentiality. Access to the full case study database is available for IFSO Scheme Participants in the Participant Area.

Coffee-stained carpet, dining room only

Check your policy limitations and exclusions.

After Viv's Nespresso coffee stained a patch of dining-room carpet, she wanted most of the carpet in the house replaced.
House and Contents Insurance

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Stolen car, no cover

Disclose past criminal convictions when you apply for insurance.

Tim's claim, for his stolen car, was declined because he hadn’t mentioned his criminal convictions. Tim said he wasn’t asked.
Vehicle Insurance

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The van, the can and the boom

Don’t tell tall tales – your claim will be checked.

Jean Paul claimed his van caught fire because a petrol can was knocked over during “sort of a romantic meeting”.
Vehicle Insurance False Statements

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A car bumped into me - no it didn’t

False statements can’t be retracted, and all policy holders are implicated.

Mr Green tried to withdraw a claim as he had told a “bit of a lie”. But it was too late.
Vehicle Insurance False Statements

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Teenage son flips parents’ car

It’s unlikely you’ll have cover if an accident occurs when you’re in breach of licence.

Simon, on a restricted licence, flipped his parents’ car while his sister was in the passenger seat.
Vehicle Insurance

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No cover for learner driver with passengers

Don’t expect to be covered if an accident occurs when you’re in breach of licence.

When Karl, with a learner driver’s licence, crashed on the Rimutaka ranges, he had 3 passengers. His claim was declined.
Vehicle Insurance

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No tyre tread, no cover

Check your car is roadworthy, including the tyre tread, even if it has a warrant.

Jeremy wrote off his car in wet weather. His claim was declined because of a "smooth tyre".
Vehicle Insurance

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Paying excess when it’s not your fault

You will have to pay an excess, even if you're not at fault. Some policies have limited exceptions.

Mia’s car was stolen and then found, but damaged. She wanted the excess to be refunded as she wasn’t at fault.
Vehicle Insurance

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Car written-off, pay out less than expected

Check your policy for how much you will be paid out if your car is a write-off. It may be less than you expect.

Katie thought she would get $10,500 for her written-off car, but the insurer offered the market value of $7,500.
Vehicle Insurance Sum Insured

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18 criminal convictions, no clean slate

Complete insurance applications accurately. Include any criminal convictions.

David’s burglary claim wasn’t even considered after his 18 criminal convictions were revealed – he'd said he had none.
House and Contents Insurance False Statements

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Lost and found glasses and the ICR

‘Little lies’ have big consequences. Tell the truth. False statements can't be retracted.

Helen made a claim for lost glasses, and later admitted they were just scratched and worn.
House and Contents Insurance False Statements

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D.I.Y receipts

If you provide false information, insurers can decline all aspects of a claim

Xavier produced $91.5K of fake invoices for earthquake repairs on his home. His claim was declined and his policy cancelled.
House and Contents Insurance False Statements

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