Page 81 - Export and Trade

Insurance

If details of shipments are declared to the insurer on environment which is fundamentally different to the
a regular basis, say monthly or quarterly, the insurer will rest of the world. Since the introduction of the Accident
usually charge the importer or exporter on the same basis. Compensation Act over 40 years ago New Zealanders are
Where movement of goods is less frequent, it may be more not able to sue others for compensation for bodily injury.
convenient and economical for traders to arrange insurance Meanwhile, consumer law in the US has reached excessively
on an individual one-off basis ‘as and when required’. litigious heights and the European Union and Australia are
moving ever closer to the US in that regard.
2. Product Liability Insurance There are demands for greater accountability on the
In broad terms, Product Liability means that product part of product manufacturers and, most importantly, for
manufacturers and distributors may be sued where they easier access by injured parties to compensation. New
are seen to be responsible for a product causing loss, Zealand’s main trading partners have adopted the use
damage or injury to a third party or consumer. Most of ‘strict liability’ in their consumer protection legislation
exporters overlook the fact that the liability of their as a legal benchmark for determining product liability for
products travels around the world, sometimes to places manufacturers. This is where a manufacturer or exporter
far more litigious than New Zealand. Exporters could may be held liable for damages provided that a claimant
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consequences to the insurer. in the past have argued the defence of ‘misuse’ of their
As the removal of trade barriers around the world products are now expected to have had some foresight into
continues, the trend towards open markets is increasing. how their product is likely to be used or misused and to
Economic, trade, tariff, communication and legislative have provided adequate warnings.
barriers are being removed in favour of dealing on a more Claims against exporters will most likely result from
free-trade basis. While the move towards a truly global injuries or damage occurring in the country in which their
community progresses, global citizens are developing products are sold and, as a result, they will be subject
different expectations. New Zealand operates in a legal to the claims for compensation from consumers in

NZ Export & Trade Handbook 2018 79