Defamation Cover Refused (Press, 29 October 1985)

On 29 October 1985, it was reported that Graeme Lee, an Opposition member of Parliament from Hauraki, inquired about the availability of insurance coverage for defamation writs. His concerns arose from the reality that while Members of Parliament enjoy protection against legal repercussions for statements made in the House, they are exposed to the same consequences as any private citizen when speaking or writing outside of it. Mr J. F. Stirton, the general manager of the State Insurance Office, informed Mr Lee that no insurance company in New Zealand is likely to provide cover for defamation claims involving MPs. He explained that this type of insurance is not a risk that his office, nor any known insurer in New Zealand, underwrites. To further assist Mr Lee, Mr Stirton reached out to Lloyd’s agents in London; their assessment confirmed a similar lack of available coverage for Members of Parliament in the UK. The context of Mr Lee's inquiry is noteworthy as it follows a personal legal battle between him and the homosexual magazine "Out!", with both parties issuing defamation writs against one another since July. The situation highlights the potential legal vulnerabilities faced by politicians when engaging in public discourse, as they remain liable for their statements outside the parliamentary framework.

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