More consumers can now get access to free dispute resolution
The Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) has made changes to its Terms of Reference (TOR) and Constitution, effective from 1 September 2023.
The Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) has made changes to its Terms of Reference (TOR) and Constitution, effective from 1 September 2023.
Media release 3 August 2023
The Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) has made changes to its Terms of Reference (TOR) and Constitution, effective from 1 September 2023.
The IFSO Scheme can now investigate complaints about insurance claims, credit and other financial services/ products up to $350,000+GST, or $2,625+GST per week for regular payments. These limits were previously $200,000+GST and $1,500+GST.
Karen Stevens, Insurance & Financial Services Ombudsman, says the changes will mean more consumers can now have their complaints investigated by the IFSO Scheme’s free service, rather than having to go through the courts.
“Previously, anyone with a claim over the limit of $200,000 would have had to pay for legal representation to take their case to court,” Stevens says. “Court proceedings are not cheap and they’re certainly not free – like the IFSO Scheme process”.
“The changes bring us into line with some other dispute resolution schemes in the financial sector, and will mean a number of extra cases are now eligible for us to look at.”
“Weather events like we’ve seen this year, such as the Auckland flooding and Cyclone Gabrielle, often result in many claims, both small and very large. The change increasing our monetary limits will allow us to investigate more complaints from those affected at the higher end and will ensure more consumers get increased access to justice,” says Stevens.
Other changes include clarifying the IFSO Scheme’s decision-making process and increasing the amount that can be awarded for special inconvenience to $5,000.
The IFSO Scheme’s TOR and Constitution were last revised in 2015. Since then, there have been law changes which have required the TOR and Constitution to be updated, and the Scheme’s independent review, carried out in 2018 by Professor John McMillan AO, also recommended a number of changes.
The IFSO Scheme consulted on proposed changes during two rounds of feedback with Participants and stakeholders, in late 2022 and early 2023.
The full TOR and Constitution documents can be found here:
Terms of Reference effective 1 September 2023
Constitution effective 1 September 2023
Media contact
Sarah Smythe
IFSO Scheme Communications Manager
sarah@ifso.nz
021 292 4036