With New Zealand launching a new tourism campaign targeting Australian visitors, a legal expert has warned that Australian tourists injured in New Zealand cannot pursue compensation claims against individuals or businesses, even in cases of clear negligence.
Insurance professionals advising clients on travel coverage for New Zealand are urged to clarify key differences between liability laws in Australia and New Zealand.
Peter Carter, director of Queensland-based Carter Capner Law and a former president of the Australian Lawyers Alliance, explained that New Zealand’s no-fault accident compensation system, in place since the 1970s, prevents legal claims for personal injury.
Unlike Australia, where individuals can seek damages from at-fault parties, New Zealand law prohibits lawsuits against drivers, businesses, or other entities, regardless of responsibility.
For insurance brokers, this represents an important conversation to have with clients planning travel to New Zealand.
“As Australians we naturally assume that because at-fault motorists, workplaces, and business enterprises carry insurance and can be pursued for losses resulting from major injuries – it would be the same across the ditch. But in New Zealand, careless drivers and businesses are immune from liability for the injuries they cause other people,” he said.
He referenced an Australian tourist who suffered spinal injuries in a head-on crash with a speeding driver in New Zealand. Despite multiple legal efforts over several years, the victim was unable to obtain compensation.
“You have no right to compensation and no avenue to take legal action, even if you are flattened on a pedestrian crossing by a 10-tonne truck,” Carter said.
Insurance professionals may need to highlight that standard travel insurance covers medical expenses but does not typically provide ongoing income support for lost wages following an accident in New Zealand.
Carter advised that income protection insurance is the only way for clients to mitigate this risk before travelling.
“Australia’s health system will cover you for some medical expenses on your return, but you are on your own if you can’t return to full-time work,” he said.
Brokers are urged to ensure that clients understand their policy coverage and consider additional protections if they are engaging in high-risk activities or planning extended travel.
“There is no safety culture, and this means road and other accident rates are much higher than Australia, so Australians must visit New Zealand with that knowledge,” Carter said.
