Important update: Changes to RMA Cover
The Government has passed a law that affects how insurance works under the Resource Management Act (RMA). Because the law took effect immediately, our priority is making sure you’re aware of the change.
On 21 August 2025, it became unlawful for insurers to provide cover for fines or penalties under the RMA. This means from 21 August 2025:
We are not permitted to cover RMA fines or penalties.
It’s also unlawful for anyone to receive an insurance payment for RMA fines or penalties.
What hasn’t changed?
This change of law only applies to fines or penalties under the RMA. No other part of the policy is impacted.
We’ll still cover you for your legal defence costs arising out of a proceeding if you unintentionally breach the RMA.
This means that if you unintentionally breach the RMA, we’ll help with all reasonable legal costs and expenses for expert assistance (other than your wages, salaries, lost earnings or fees) incurred by you or on your behalf with our consent (which will not be unreasonably withheld) in defending, investigating, monitoring, settling, or appealing any proceedings made against you.
Why does my policy say fines are covered, if you won’t cover fines under the Resource Management Act (RMA)?
Our Statutory Liability Policy covers fines that we are legally permitted to insure against.
A fine is defined as “Any monetary penalty or other monetary fine or costs and disbursements assessed that may be payable by you as a result of a conviction for an offence under an Act arising out of an occurrence.”
However, the policy also says that a fine does not include “any other monetary payment, penalty or fine deemed to be unlawful to insure against.”
The law changed on 21 August 2025, and from that date it became unlawful for insurers to cover fines or penalties under the Resource Management Act (RMA). The policy wording is the same, but because the law has changed, the coverage has changed.
This page is only a summary of changes to the law that effect the policy. If you have any questions or need help understanding what this means for you, please don’t hesitate to get in touch. For full details, exclusions and limitations, please read your policy document.