# CL-M-11: My car claim was turned down because they say I didn't declare something. How do I challenge that? Collected 11 October 2026 [Car insurance study](https://nzbrands.ai/research/insurance/car-insurance) ## ChatGPT Answer ID: 26ef55fb-2471-4288-88ea-540cee00cb88 If your car insurance claim has been declined because your insurer says you failed to disclose something, you can challenge that decision in New Zealand. The key is to establish exactly what they say you should have disclosed, what you were asked when you took out or renewed the policy, and whether that omission gives them a valid reason to decline your particular claim. Don't assume the insurer is automatically right just because it has relied on non-disclosure. Equally, the outcome will depend on the facts, the policy wording and the disclosure rules that apply to your policy. ## 1. What to do first - Ask for the decision in writing. Request the exact reason for declining the claim, including the policy clause and the legal basis they rely on. - Ask what you allegedly failed to disclose. Was it a previous accident, a driving conviction, a modification to the car, another driver, a previous insurance refusal, or something else? - Get the original application and renewal records. Ask for the questions you answered, your answers, and any call recordings, online application records or broker notes. - Check whether the alleged omission relates to the claim. For example, if the insurer says you failed to disclose a vehicle modification, ask it to explain why that omission justifies declining this particular claim. - Keep everything in writing. Save emails, letters, policy documents, photos, repair estimates and a timeline of what happened. Avoid accepting the decision or admitting that you breached your disclosure obligations before you understand the insurer's reasoning. ## 2. Make a formal complaint Send a complaint to the insurer's internal complaints team, not just the claims assessor. Explain why you dispute the decision and ask them to reconsider the refusal. Your argument may be stronger if: - The question on the application was unclear or didn't ask about the matter they now say you should have disclosed. - You gave the information to a broker or representative and reasonably believed it had been passed on. - The insurer already knew, or had information about, the matter. - The alleged omission was accidental rather than deliberate. - The insurer hasn't adequately explained why the omission justifies refusing the claim. These are possible arguments, not automatic grounds for overturning a decision. New Zealand's consumer protection guidance specifically recommends challenging refused car insurance claims through the insurer's complaints team first. [Car insurance](https://www.consumerprotection.govt.nz/help-product-service/cars/paying-registering-insuring-car/car-insurance)[Making a complaint about your financial service provider](https://www.consumerprotection.govt.nz/help-product-service/managing-money/how-to-complain-about-your-financial-service-provider) ## 3. Escalate if the insurer won't change its decision If the insurer upholds its refusal, you can usually take the dispute to its independent financial dispute resolution scheme. This is generally free for consumers. - [Insurance & Financial Services Ombudsman (IFSO)](https://www.ifso.nz/) — handles complaints about its member insurers. Phone 0800 888 202. - [Financial Services Complaints Limited (FSCL)](https://fscl.org.nz/make-a-complaint/) — handles complaints about its members, including declined insurance claims. - [New Zealand Government guidance on financial service complaints](https://www.govt.nz/browse/consumer-rights-and-credit-record/how-to-complain/complain-about-your-financial-service-provider/) — explains how to identify the correct scheme. You can ask the insurer which scheme it belongs to. If the complaint cannot be resolved internally, the scheme can investigate whether the decision was fair and may be able to recommend or determine a different outcome, depending on its rules. [Complain about your financial services provider](https://www.govt.nz/browse/consumer-rights-and-credit-record/how-to-complain/complain-about-your-financial-services-provider/)[What can we help with?](https://fscl.org.nz/make-a-complaint/what-can-we-help-with/)[Insurance & Financial Services Ombudsman Scheme](https://www.ombudsman.parliament.nz/others-who-can-help/complaints-a-z/insurance-financial-services-ombudsman-scheme) One important point about timing: New Zealand's Contracts of Insurance Act 2024 is scheduled to come into force on 15 November 2027, so it is not yet in force as of October 2026. The applicable legal rules may depend on when your policy was entered into or renewed. [Contracts of Insurance Act 2024](https://www.fma.govt.nz/business/legislation/contracts-of-insurance-act-2024/)[Contracts of Insurance Act 2024](https://www.legislation.govt.nz/act/public/2024/46/en/latest/sections/LMS456561/) ## 4. A complaint letter you can use Writing **Subject: Formal complaint — declined motor vehicle insurance claim** Dear Complaints Team, I am writing to formally dispute the decision to decline my motor vehicle insurance claim, reference [claim number], on the grounds of alleged non-disclosure. I request a formal review of this decision. Please provide: 1. The specific information you allege I failed to disclose. 2. The exact question or policy requirement you say I failed to comply with. 3. Copies of the relevant application and renewal records, including any recorded answers and relevant communications. 4. The policy wording and legal basis relied upon to decline my claim. 5. An explanation of why the alleged non-disclosure justifies declining this particular claim and whether any alternative outcome has been considered. I ask that you reconsider the decision in light of the full circumstances, including the information I provided when obtaining or renewing the policy and the circumstances surrounding the alleged omission. Please treat this letter as a formal complaint under your internal complaints process. Please provide your written response, including the reasons for your decision and details of your external dispute resolution scheme if the matter remains unresolved. I look forward to your response. Kind regards, [Your name] [Policy number] [Claim number] ## Let's work out how strong your challenge might be I can help you identify the most relevant arguments for your particular situation. What exactly does the insurer say you failed to disclose? For example, was it a previous accident or claim, a driving conviction, a modification to your car, who the main driver was, or something else? If you can share the wording from the rejection letter, with personal details removed, I can help you work through it. ## Gemini Answer ID: e0cf703e-9429-4d74-ae46-b86b25451c1f Having an insurance claim turned down on the grounds of "non-disclosure" is stressful, but it is **not the final word**. Insurers frequently decline claims or alter policies based on non-disclosure, but many of these decisions can be successfully challenged or overturned. A step-by-step framework outlines how to challenge a non-disclosure decline in New Zealand: --- ### 1. Secure the Full Decline in Writing * **Get the specifics:** If you only received a phone call, demand a formal written decline letter. * **Identify the exact clause:** The letter must state the exact reason for the decision, the specific policy clause they are relying on, and the precise detail they claim you failed to disclose (e.g., an unlisted driver, previous vehicle modifications, or past driving convictions). ### 2. Request Your File Under the Privacy Act * **Gather evidence:** Under the New Zealand Privacy Act, you have the right to request your file from the insurer. * **Ask for everything:** Request a copy of the original application form you submitted, call recordings or transcripts from when you took out or renewed the policy, and the internal assessor or underwriter notes. Check carefully whether the question was actually asked the way the insurer claims, or if there was a misunderstanding. ### 3. Review the Law on Non-Disclosure Under New Zealand insurance law, an insurer can decline a claim if you failed to disclose "material information" (information that would have influenced their decision to accept the risk or set your premium). However, you should check for common grounds to push back: * **Was the question ambiguous?** If a question on the application form was unclear, vague, or open to interpretation, insurers generally cannot penalize you for answering it reasonably. * **Was it truly "material"?** The insurer must prove that the undisclosed fact would have genuinely changed their underwriting decision (e.g., they wouldn't have insured you at all, or would have applied different terms). * **Did you actually disclose it?** Sometimes information was mentioned during a phone call or entered into an online portal that failed to map properly to the insurer's system. Your file notes or call recordings will prove this. ### 4. Lodge an Internal Dispute Resolution (IDR) Complaint * **Initiate a formal review:** Write back to your insurer stating that you wish to lodge a formal complaint against their decision. * **Present your case:** Clearly explain why you believe the decline is unfair or incorrect, attach any evidence or documentation showing you answered honestly (or that the detail wasn't material), and ask for their final written position. * Insurers in New Zealand are required to have an internal complaints process, and they typically have up to two months to resolve it. ### 5. Escalate to a Free External Dispute Resolution Scheme If the insurer upholds their decision in a final "deadlock letter," do not give up. You have the right to take your case to an independent, **free** external dispute resolution scheme. Check your insurer's deadlock letter for which scheme they belong to: * **IFSO (Insurance & Financial Services Ombudsman)** * **FSCL (Financial Services Complaints Ltd)** * **FDRS (Financial Dispute Resolution Service)** *Note: You generally must file your dispute with the ombudsman **within 3 months** of receiving the insurer's final deadlock letter. These schemes are independent, cost you nothing, and their decisions are legally binding on the insurance company (up to $500,000), though you retain your right to go to court if you disagree with the outcome.* --- What specific detail does the insurer claim you didn't disclose? ## AI Overviews Answer ID: dc26125c-f2f2-480f-bd7e-397a0e1ebe30 In New Zealand, **non-disclosure** is the most common reason car insurance claims are declined. Under current NZ law, insurers can legally void a policy or decline a claim if you fail to share "material information" (like undisclosed traffic fines, modifications, or previous accidents)—even if the mistake was completely accidental. However, you can still fight the decision if you believe the omission was irrelevant, the question was never asked, or the insurer is being unreasonable. You can challenge the decision using the following steps: 1\. Get the refusal in writing Do not accept a verbal rejection over the phone. Ask your insurer for a formal **decline letter** detailing the exact reason for the refusal and the specific policy clause or question they claim you breached. You are also legally entitled to request copies of the **assessor’s report** and any **sales or renewal call recordings**. 2\. Evaluate their grounds for denial Review your original application or policy renewal schedule alongside the evidence: * **Did they actually ask?** Listen to the phone recording or check the application text. If the broker or online form never explicitly asked a question, or if the wording was highly ambiguous, you have strong grounds to dispute the decline. * **Was it "material"?** To legally decline a claim, the undisclosed information must be something that would have caused a "prudent underwriter" to either reject your policy entirely or charge a higher premium. If it's a minor detail that wouldn't alter your premium, point this out. 3\. Lodge a formal Internal Dispute Resolution (IDR) complaint Every New Zealand insurer is legally required to operate a free **internal complaints process**. * Write a formal email or letter to their complaints department outlining why you disagree. * Attach any evidence you have (e.g., proof that an undisclosed modification was factory-standard, or that a driving fine happened after the policy locked in). * Explicitly state that you want a formal review from a claims manager. The insurer typically has up to **two months (or 40 working days)** to investigate and issue a final response. 4\. Escalate to an external Ombudsman If the internal review fails, ask the insurer for a **"Letter of Deadlock"**. This note confirms that you have reached the end of their complaints process and frees you up to take your dispute to their independent, free dispute resolution scheme. Depending on who your insurer is, they will belong to one of two main bodies: * **Insurance & Financial Services Ombudsman Scheme (IFSO):** Covers most mainstream NZ insurers. * **Financial Services Complaints Limited (FSCL) :** Covers specific niche insurers and brokers. These schemes are completely **free for consumers** , independent, and have the power to overturn the insurer's decision and award binding payouts up to $500,000. _(Note: You generally have**three months** from receiving your deadlock letter to submit your claim to the Ombudsman, so do not delay.)_ * * * To help me give you more specific advice on how to build your case, could you share: * **What exactly** does the insurer say you failed to disclose? (e.g., a past speeding ticket, a minor accident, or a car modification?) * **How did you set up the policy?** (e.g., did you complete it online, over the phone with a broker, or was it set up automatically by a car finance company?) ## Google AI Mode Answer ID: 848ce8b8-3573-4ea2-ae95-462485880ffe When an insurance company declines a claim based on **non-disclosure** (alleging you didn't declare something important when you took out or renewed the policy), it can be frustrating. Under New Zealand insurance law, they have to prove that the undeclared information was material and that they wouldn't have insured you (or would have done so on different terms) had they known. You can challenge the decision using a step-by-step dispute process: 1. **Request the full file and reasoning in writing** Ask your insurer to provide the exact rationale for the declination, copies of your original application/policy wording, transcripts or recordings of phone calls if you applied over the phone, and any evidence they are relying on to prove the non-disclosure. 2. **Go through the insurer’s Internal Dispute Resolution (IDR)** Contact your insurer's internal complaints department (or Dispute Resolution department). Explain clearly why you disagree with their assessment. Provide any evidence showing that: * * You _did_ disclose it (e.g., an email receipt, a confirmation, or notes from a phone call). * It was an honest mistake or misunderstanding, or the question wasn't clear. * The undeclared fact wasn’t actually material to the risk of the claim. * Insurers in NZ usually have up to 2 months to try to resolve the complaint internally. * 3. **Escalate to an Independent Dispute Resolution Scheme (IDRS)** If your insurer upholds their decision or doesn't resolve the complaint within two months (a "deadlock"), you can take your case to an approved, free, and independent dispute resolution scheme. Depending on which scheme your insurer belongs to, this will be: * * The **Insurance& Financial Services Ombudsman (IFSO) Scheme**: Free for consumers, independent, and investigates unresolved insurance complaints. You can contact them via IFSO Contact & Complaints or call 0800 888 202. * **[Financial Services Complaints Ltd (FSCL)](https://fscl.org.nz/)** : Another approved independent ombudsman service for financial/insurance providers. * **[Financial Dispute Resolution Service (FDRS)](https://fdrs.org.nz/)**. * _Note: You can check which scheme your insurer belongs to on their policy documents or by searching the Financial Service Providers Register._ If you'd like to share, what **specific detail** did the insurer claim you failed to declare, and was the policy **purchased directly or through a broker/advisor**? I can give you more tailored points for your argument.