New Zealand Insurance Balks

Published online: Dec 23, 2003
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New Zealand's second biggest insurer is excluding claims for damage arising from genetically modified organisms from its farm liability policies.

Vero Insurance New Zealand Ltd., formerly Royal and SunAlliance, said the decision was made on the basis that the use of GM technology in farming presents potential liability risks that at present cannot be quantified.

"The potential risks associated with GMOs is unknown at present given that it is a relatively new technology. We are unable to assess the potential financial exposure should claims arise," the company said in a statement.

New Zealand's moratorium on the commercial release of GM crops will be lifted at the end of October.