Terms of Business

Aon Terms of Business

These Standard Terms of Business apply to Aon Risk Services and are not applicable to: 

• AGRC services and Aon Sprinkler Services, where Terms of Business are agreed on an individual client basis, refer here. (AGRC encompasses claims consulting, risk consultancy services (including analytical and loss modelling services, business continuity management, captive management, enterprise risk management and insurable risk profiling), risk control and engineering consultancy services, and valuation services.)
• Aon Hewitt, where Terms of Business are agreed on an individual client basis.

Summary

• We will provide the services agreed with you from time to time in writing (Services) to you on these Terms of Business (Agreement).
• You must provide all Relevant Information to us.
• We will be entitled to receive commissions and or fees for providing the Services.
• Subject to any other agreement, you can terminate our relationship at any time by giving 60 days notice in writing.
• Our liability to you under this Agreement is limited.

Introduction

This Agreement sets out the terms and conditions on which Aon New Zealand (we/us/our) will provide our Services to you. Unless otherwise agreed in writing with you, this Agreement applies to all Services we provide to you and is subject to any additional or alternative terms which we may agree in writing with you.

The Services that we will provide are:

• If we have a service level proposal, those services specifically described in that proposal and such additional services as we may further agree with you in writing from time to time; or
• Those services which we have agreed in writing with you.

We do not provide any additional services (called Excluded Services) and you agree and acknowledge that we have no duty or obligation to provide Excluded Services to you or to any other person without prior written agreement.

You will be taken to have accepted this Agreement by continuing to instruct us, unless otherwise agreed in writing with you.

This Agreement commences from the day you engage us and continues until either party provides 60 days’ written notice of termination (expiring after any initial term we agree with you). Unless otherwise agreed in writing, all outstanding claims will be passed on to you for future handling from the date of termination.

Our responsibilities

We will perform our Services:

• With reasonable care and skill and with integrity; and
• Based upon the demands and needs that you have expressly advised to us.

We will also provide you with policy documents as soon as practicable after we receive these from your insurer(s);

Our role is limited to the provision of insurance and risk management related advice as specified in the Services. Under no circumstances do we or will we act as an insurer. Nor do we provide safety inspections, valuations or advise on every potential hazard or threat to your business (unless specifically retained by you to do so).

Your responsibilities

You are responsible for supplying us with all material accurate and complete information and facts (Relevant Information) on a timely basis in relation to our provision of the Services. Relevant Information includes all information and facts which may be material to an insurer’s assessment of a risk for which you have asked us to arrange insurance cover.

If you are unsure about any matter, or what may constitute Relevant Information, please contact us for guidance.

Both before taking out an insurance policy and at the time of renewing a policy, you must provide all Relevant Information. You must also provide all Relevant Information upon any material or relevant change of circumstance or when additional material information comes to light throughout the period of the policy.

Should a circumstance, event or loss occur which could result in you making a claim, you should advise us of the details as soon as possible and within the time required under your contract of insurance. Failure to advise an insurer of such a circumstance, event or loss could prejudice your rights under an insurance contract. If you fail to disclose or misrepresent any Relevant Information, this could invalidate your insurance and mean that any claims under the insurance may not be paid to you.

Your policy documents contain the terms of your cover (including applicable limits, sub-limits and deductibles) and impose various obligations on you. You must read these documents carefully to ensure that the cover suits your needs and so you understand and comply with your obligations under your policy(s). Failure to do this may result in uninsured losses. Please advise us immediately if you notice any mistakes of fact or believe the contents do not address your needs.

Our remuneration

We normally receive a commission from insurers and any other service providers that we may recommend to you. We may alternatively, or in addition, receive a fee for our Services or other Services we provide to you by agreement with you (Together, our Remuneration).

Unless mandated otherwise by law or contractual arrangement with an insurer, at the time of the inception of the insurance we are deemed to have earned 64% of the commission earned on placements, and this percentage is not refundable in the event of early termination.

Aon may charge administration fees to cover administration expenses and disbursements.

All Remuneration is due to us on or before the due date set out in our tax invoice.

We make the following disclosures to you in relation to our Remuneration:

• We and members of the Aon Group may earn interest income on funds received from you between the date of receipt and disbursement date.
• We may offer to arrange premium funding to help spread the cost of your insurance premiums over the year. Please note that we offer and arrange premium funding as agent for the premium funder and not as your credit provider or finance broker. We may also act as the premium funder’s agent in cancelling any insurance where you have failed to meet your repayment obligations. The details of your premium funding arrangement will be set out in your separate agreement with the premium funder. The premium funder usually pays a commission to us for arranging the funding. Should your funded insurance policy be cancelled mid-term, for any reason, you should be aware that there may be a shortfall between the balance of the amount payable under the premium funding contract and the return premium as the premium funder may be entitled to charge interest for up to the full term of the loan period under the terms of the funding contract. 
• The Aon Group has separate reinsurance companies that arrange insurance for insurers (called reinsurance). In some cases an insurer may ask one of our reinsurance broking companies to arrange reinsurance in respect of insurance purchased by you, in which case that company may also earn commission or other remuneration.
• The Aon Group has specialised broking companies that arrange insurance placements into overseas markets acting as wholesale brokers. Such companies may assist us in accessing, negotiating, placing or procuring those markets. If this is the case, we or an Aon Group member may earn commission or other remuneration for those services.
• We and members of the Aon Group also provide consulting or administrative services to insurers and reinsurers from time to time and may earn commission or other remuneration from these services.
• We and members of the Aon Group have developed insurance placement facilities that enable Aon to obtain competitive quotations from a panel of established insurers under the terms of bespoke policy wordings negotiated by Aon. The work that Aon has done to establish these platforms and wordings reduces the insurers’ work. In recognition of this, a participating insurer may pay a fee to us or an Aon Group member to access such facility.
• Aon and its staff may also receive non–monetary benefits from insurers such as sponsorships of Aon conferences, client functions, meals and entertainment. Aon has, and monitors compliance with, a policy that ensures that these do not create a conflict with your interests.
• Aon may compensate third parties by sharing fees or commission in respect of services such as referral of clients to Aon.

Invoices and GST

We will charge goods and services tax (GST) on our Remuneration as required by New Zealand law and any quote, estimation or invoice which we may provide to you shall be deemed to exclude GST unless otherwise specified.

Premium Payments and Statutory Charges

You must pay all premiums and other charges (including all taxes and fire and service levies) on or before the expiry of 14 days from the date of our invoice, unless otherwise specified on your invoice.

We will advise you if insurers have imposed a premium payment warranty or condition which may give the insurer the right to cancel your policy if you fail to pay within the time specified. Please contact us immediately if you are unable to comply with a premium payment warranty or condition. We make every effort to correctly determine the premium and statutory charges that apply to your insurance. However, occasionally errors can occur, for example, where we make an unintentional error or because a third party advises us of the wrong amount. Please note that we retain the right to correct any such error and you agree, to the extent permitted by law, not to hold Aon responsible for any loss you may suffer as a result of the error and its correction.

We only accept payment of premiums and charges by cheque, credit card or bank deposit as specified on your invoice.

Foreign Account Tax Compliance Act 

Foreign Account Tax Compliance Act (FATCA) applies to any insurance placements containing U.S. risk. 
Aon New Zealand and its licensed affiliates are required to act as withholding agents on any premium payment in-scope under FATCA to non-US insurers where premium payment is remitted by Aon New Zealand. In such instances, Aon New Zealand will also be responsible for gathering and validating the appropriate US withholding tax certificates, and associated statements and other documentation, from carriers and intermediaries. 
Aon New Zealand is not required under FATCA to act, and will not act, as withholding agent on any premium payment remitted by you as a client directly to any other party unrelated to Aon New Zealand, including where premiums are directly paid to insurers and to intermediaries. Where you make these direct payments to parties unrelated to Aon, you will be responsible for all aspects of FATCA compliance. 
If you direct the use of a carrier or intermediary that is unable or unwilling to provide its requisite US withholding certificate, and/or any associated statements and other documentation that may be required, to Aon New Zealand in instances where Aon New Zealand is to remit premium to that carrier or intermediary, you will be responsible for paying any additional sums so that the mandated FATCA withholdings can be made while concurrently fulfilling your obligation to remit the full premium amounts necessary to effect coverage. Aon New Zealand will not be responsible for issues arising from Aon New Zealand withholding 30% of premium payments in connection with its FATCA obligations. 

Limitation of liability

We will provide the Services with reasonable care and skill. All representations (whether express or implied) and all other implied conditions, warranties and terms as to the provision of the Services are otherwise excluded to the extent permitted by law.

While we may provide you with information about your insurers’ financial standing from time to time, as your broker, we are not the insurer of any risk and we cannot guarantee the availability of insurance for your particular risks. We do not in any way guarantee the solvency of insurers.

To the extent permitted by law, we and our related entities (as defined within the Companies Act 1993) will not be responsible or liable for:

• Any consequential, incidental, indirect or special damage or loss of any kind including but not limited to loss of profits, loss of revenues, loss of anticipated savings, loss of data, loss of reputation, loss of goodwill, loss of opportunities and loss of business;
• The supply, by you or others, of incorrect or incomplete information (including information that we may use to calculate the premiums and other charges relevant to your insurance);
• The failure by you or others to supply appropriate, relevant or timely information, including Relevant Information, or the failure by you or others to provide such information within the time periods reasonably requested by us from time to time;
• Any expenses or liabilities in respect of tax or fire service levies arising from the way in which we arrange your insurances;
• Any variation between a certificate or summary of insurance and the actual terms of cover or any omission from or misstatement in a certificate or summary of insurance;
• Any failure or delay on our part where it is due to causes outside our reasonable control, including, but not limited to, any act of God or nature, war or terrorism, riot, civil disturbance, national emergency, epidemic, action or inaction of a government or regulatory authority and strike or other industrial action;
• The failure of you or others to act on our advice or to respond promptly to any communications from us or any insurer; or
• The default, negligence, error, omission or lack of care on the part of any person other than ourselves.

Our aggregate liability (including interest and costs) in respect of any claim arising, under or in connection with this Agreement, the Services or our business relationship, shall be limited (to the extent permitted by law) to NZ $1,000,000 or such other amount as may be expressly agreed between us in writing.

Confidentiality

Subject to any relevant law, and our obligation to provide the Services, we will keep all confidential information that we receive from you confidential and will use it solely in connection with the provision of the Services or otherwise for the purpose for which it was disclosed to us.

However, our confidentiality obligation does not apply where:

• You have given written permission otherwise;
• Disclosure is required to satisfy legal obligations or regulatory requirements;
• Disclosure is reasonably required to carry out services (for example, providing information to current or prospective insurers;
• Such information is in the public domain; or
• The information is rightfully in our possession other than as a result of a breach of any obligation of confidentiality.

Non-Dissemination of Material

Our communications with you, your employees or agents, whether written or oral are provided solely for your information and use in connection with any engagement, and accordingly, must not be used for any other purpose without our prior written consent. No other party is entitled to rely on any of our reports, information or advices for any purpose whatsoever, and we disclaim any responsibility to any such third party who has had communicated to them the report, information or advice provided by us to you as part of any engagement.

Your information

We will hold any personal information that you provide to us in accordance with the Privacy Act 1993. Any such information that we request from you will be used pursuant to the provision of the Services.  In this respect, it will be necessary for us to pass your information on to insurers and other product or service providers which may provide us with additional support in connection with our provision of the Services.

Unless you instruct us not to do so, we may also contact you in connection with other products or services that we feel may be of interest or benefit to you.

You have the right to access and correct any of your personal information that we hold.  Such information is held by us at Level 16, AMP Centre, 29 Customs Street West Auckland. 

Collection and Use of Client Information

We gather data containing information about our clients and their insurance placements, including but not limited to: names, industry codes, policy types and policy expiration dates, as well as information about the insurance companies that provide coverage to its clients or compete for its clients’ insurance placements. 

This information is maintained in one or more databases.  In addition to being used for the benefit of our clients, these databases also may be accessed by other Aon Group members for other purposes, including providing consulting and other services to insurance companies for which we or our related entities may earn compensation.

Due to the global nature of services provided by the Aon Group, the information you may provide may be transmitted, used, stored and otherwise processed outside the country where you submitted that information.  If you have questions about Aon Group data processing or related compensation, please contact your Client Relationship Manager.

Aon’s File Retention Policy

We hold paperwork and correspondence regarding your risk and insurance matters for at least seven years. After this period we will arrange for the file to be destroyed. Please note that we will not consult you before destroying this information.

Please note that for certain types of insurance it is possible that you may need to make a claim against a policy long after this period. You remain responsible for your paperwork and correspondence and should keep your policy documents in a safe place.

Electronic communications

We may correspond with you by electronic communication unless you instruct us not to do so. We may email to you information legally required to be provided to you. In such a case, you consent to receiving this information with an electronic signature. Electronic communications are not always secure and they may be read, copied or interfered with in transit. We are not responsible for any of the risks associated with electronic communication, including loss of data.

Health and Safety

In providing you with the Services, we will comply with our obligations under the Health and Safety at Work Act 2015 and we expect you to assist us in doing so. Where we visit you this includes you ensuring, so far as reasonably practicable, that the safety of our people is not put at risk. Where required, both parties will consult, coordinate and cooperate with each other in respect of shared duties under the Health and Safety at Work Act 2015 so far as is reasonably practicable.

Conflicts of interest

Occasions may arise where either we, one of our clients, or one of our service or product providers may have a potential conflict of interest in connection with the Services we provide to you. If this occurs and we become aware that a potential conflict exists, we will contact you and work together to find a suitable solution.

Termination

You may instruct us to cease the provision of the Services, or any part thereof, at any time. Your instructions must be in writing and will take effect from sixty (60) days after the date that we receive them. In the event that such termination occurs while one or more outstanding claims exist, then unless otherwise agreed, such claims shall be transferred to you for management from the date of termination.

If we feel we cannot continue to provide the Services to you, we will give you a minimum of sixty (60) days’ notice of termination.

Disputes

At Aon we make every effort to provide you with the best products and highest level of customer service. However, we recognise that even in the best managed company things can go wrong. 

If you have any complaint in respect to Aon, or are not satisfied with the service you have received from us, we want to hear about it so that we can investigate your concerns quickly and fairly.

Please contact your Aon Client Relationship Manager or your local Aon office by telephone, email or in writing. You will find the address and phone number of your local office on our website at www.aon.co.nz/Contact Us.

If your Aon Client Relationship Manager is not able to resolve your complaint, it will be referred to Aon’s Complaint Manager for an independent review in accordance with Aon’s internal complaint and dispute resolution procedures.

Alternatively, you can contact Aon’s Complaint Manager directly on 09 362 9000 or you can email details of your complaint to us in writing at nzfeedback@aon.com.

If your complaint remains unresolved, or if you are dissatisfied with Aon’s response to your complaint, you may refer the matter to Financial Services Complaints Limited (‘FSCL”) by emailing info@fscl.org.nz or calling 0800 347 257. Aon is a member of this independent dispute resolution scheme approved by the Ministry of Consumer Affairs. Full details on how to access the FSCL scheme can be obtained on their website www.fscl.org.nz. There is no cost to you to use their services.

Alternatively you may wish to contact the Insurance Brokers Association of New Zealand, of which we are a member, by calling +64 9 306 1732.

General

We are entitled to change these Terms from time to time, in which case we will provide you with amended Terms. Unless we receive written notice from you, the amended Terms will be deemed accepted after 30 days from the date we provide you with the amended Terms. If you do not accept the amended Terms you may terminate the Terms by written notice, termination to take immediate effect upon receipt of notice by us. 

Our relationship with you is governed by New Zealand law and the New Zealand Courts have exclusive jurisdiction.

If any term of these Terms is, or becomes, or is found to be invalid or unenforceable, in whole or in part, under any law:

• Such term or part will be read down or interpreted and enforced to the extent permissible; or (if this is not possible);
• Such term or part will to that extent be deemed not to form part of these Terms and the legality, validity and enforceability of the remainder of these Terms will not be affected or impaired.

If you have any queries about the services we offer please contact your Client Relationship Manager or our head office on (09) 362-9000.