Part 2.2(cf s 9 and Sch 1 MAA)
A third-party policy under this Act is a policy that is in the following terms:Third-party Policy
The insurer insures the owner of the motor vehicle and any other person who at any time drives the vehicle (whether or not with the consent of the owner) against liability in respect of the death of or injury to a person caused by the fault of the owner or driver of the vehicle:
(a) if the motor vehicle is not one to which paragraph (b) applies—in the use or operation of the vehicle in any part of the Commonwealth (whether or not on a road), or(b) if the motor vehicle is subject to an unregistered vehicle permit under the Road Transport (Vehicle Registration) Act 1997—in the use or operation of the vehicle on any road in any part of the Commonwealth.In this policy, words and expressions have the same meanings as in the Motor Accidents Compensation Act 1999.
10A Treatment of certain vehicles for purposes of third-party policy
(1) A motor vehicle that is:(a) subject to a conditional registration under the Road Transport (Vehicle Registration) Act 1997, and(b) designed principally for use otherwise than on a road, and(c) a motor vehicle, or a motor vehicle of a class, prescribed by the regulations for the purposes of this section,is taken, for the purposes of a third-party policy under this Act, to be subject to an unregistered vehicle permit and not to a conditional registration.(2) However, a regulation made for the purposes of this section does not affect a third-party policy of insurance under this Act that is in force in respect of any particular vehicle at the time that the regulation is made. This subsection is subject to subsection (3).(3) The first regulation made for the purposes of this section may provide that subsection (1) applies, from the commencement of the regulation, to a vehicle referred to in subsection (1) (a)–(c) that became subject to a conditional registration on or after 20 May 2002 and before the commencement of the regulation.
11 Issue of certificate of insurance
(cf s 10 MAA)
(1) If a licensed insurer accepts a premium for the insurance under a third-party policy of a motor vehicle, the licensed insurer must immediately issue a certificate of insurance to the owner of the vehicle.(2) If a licensed insurer accepts a premium for the insurance under a third-party policy of motor vehicles to which a trader’s plate is or is to be fixed, the licensed insurer must immediately issue a certificate of insurance to the trader.(3) A licensed insurer who issues such a certificate is taken to have issued a third-party policy for the motor vehicle or motor vehicles to which the certificate relates.(4) If 2 or more licensed insurers issue certificates of insurance which (but for this subsection) would be capable of having effect at the same time in respect of the same motor vehicle, a third-party policy is taken to have been issued only by the licensed insurer recorded by RMS in connection with the registration or renewal of registration of the motor vehicle or issue of a trader’s plate as being the insurer.
12 Evidence of insurance in respect of motor vehicle
(cf s 11 MAA)
(1) RMS must not register or renew the registration of a motor vehicle or issue a trader’s plate unless:(a) the applicant produces a certificate of insurance issued by a licensed insurer in relation to the motor vehicle or trader’s plate, or(b) RMS is satisfied that there is evidence, of a type approved by the Motor Accidents Authority, of the existence of a third-party policy in relation to the motor vehicle or trader’s plate.(2) This section does not apply to a trailer.
13 Commencement and duration of third-party policy
(cf s 12 MAA)
(1) A third-party policy taken to have been issued for a motor vehicle has effect for the period for which the licensed insurer who is taken to have issued the policy is on risk in accordance with this section.(2) In this section:new insurer means the licensed insurer whose insurance is later in time.
old insurer means the licensed insurer whose insurance is earlier in time.
period of grace means the period of 14 days after the registration, or renewal of registration, of a motor vehicle expires.
period of registration means the period, not exceeding one year, for which the registration or renewal of registration of a motor vehicle is effected, but if, within that period, the registration or renewal of registration is cancelled or surrendered, it means the period for which the registration or renewal of registration is actually in force.
(3) The old insurer and the new insurer may be the same licensed insurer or different licensed insurers.(4) In the case of the registration (but not the renewal of registration) of a motor vehicle, the licensed insurer is on risk for the period of registration of the motor vehicle.(5) If registration is renewed before the previous period of registration expires, the old insurer is on risk until the previous period of registration expires and the new insurer comes on risk immediately after the previous period of registration expires.(6) If registration is renewed during the period of grace, the old insurer is on risk until 12 midnight on the day registration is renewed and the new insurer comes on risk immediately after 12 midnight and is on risk for the balance of the period of registration of the motor vehicle effected by the renewal of registration.(7) If registration is renewed after the period of grace expires, the new insurer comes on risk at the time the renewal of registration is effected. The motor vehicle is not an insured motor vehicle from the expiry of the previous period of registration until the time the renewal of registration is effected.(8) There is no period of grace following the cancellation or surrender of the registration (whether registration or a renewal of registration) of a motor vehicle.(9) A licensed insurer ceases to be on risk on the cancellation of a third-party policy under section 14, subject to section 14 (7).(10) A licensed insurer is on risk in respect of a motor vehicle under a third-party policy relating to a motor vehicle to which a trader’s plate is fixed:(a) only during the period for which the policy is issued, and(b) only during the period for which the trader’s plate is issued, and(c) only while a trader’s plate is fixed to the vehicle.(11) A licensed insurer is on risk in respect of a light rail vehicle under a third-party policy relating to the vehicle only during the period for which the policy is issued.
14 Cancellation of third-party policies
(cf s 13 MAA)
(1) A licensed insurer has no power to cancel a third-party policy.(2) A third-party policy may only be cancelled in accordance with this section.(3) A third-party policy is cancelled on the cancellation of the registration of the motor vehicle to which it relates, except where the registration is cancelled under Division 3 of Part 4 of the Fines Act 1996.(4) If the whole or any part of the premium payable in respect of a third-party policy is paid by cheque or credit card, and the cheque is not met on due presentation or the credit card transaction is not duly honoured or is fraudulent, the licensed insurer may request RMS to suspend the registration of the motor vehicle to which the policy relates for a period of 14 days.(4A) If the insured person under a third-party policy deliberately avoided paying the correct premium for the third-party policy by making a statement in connection with the issue of the policy that the insured person knew was false, the licensed insurer may request RMS to suspend the registration of the motor vehicle to which the policy relates for a period of 14 days.(4B) A licensed insurer is not to request RMS to suspend the registration of a motor vehicle except with the prior approval in writing of the Authority and is not to make such a request unless the amount outstanding remains unpaid.(5) Before requesting RMS to suspend the registration of a motor vehicle, the licensed insurer must notify the owner of the motor vehicle that the insurer intends to request RMS to suspend the registration and that the registration and third-party policy may be cancelled at the expiration of the suspension period if the amount outstanding has not been paid before the expiration of the period.(6) RMS must comply with a request by a licensed insurer under this section to suspend the registration of a motor vehicle.(6A) If the amount outstanding remains unpaid, the licensed insurer may request RMS before the end of the suspension period to cancel the registration of the motor vehicle at the expiration of the suspension period. A licensed insurer is not to request RMS to cancel the registration of a motor vehicle except with the prior approval in writing of the Authority.(6B) RMS must comply with a request by a licensed insurer under this section to cancel the registration of a motor vehicle.(6C) The Authority may establish guidelines that provide for the circumstances in which the Authority will or will not give its approval to the making of a request for the suspension or cancellation of the registration of a motor vehicle.(7) If the registration of a motor vehicle is cancelled, otherwise than under Division 3 of Part 4 of the Fines Act 1996 or subsection (6), but restored before the date for renewal of the registration, the third-party policy cancelled is taken to have remained in force during the period of cancellation.(8) Despite anything in the Fines Act 1996, the regulations may make provision for or with respect to:(a) the cancellation of a third-party policy in respect of a motor vehicle whose registration is cancelled under Division 3 of Part 4 of that Act, where:(i) the whole or any part of the premium payable in respect of the third-party policy is paid by cheque or credit card, and(ii) the cheque is not met on due presentation or the credit card transaction is not duly honoured or is fraudulent, and(b) the restoration (whether prospectively or during any past period of cancellation) of any third-party policy so cancelled.
15 Risks not insured under third-party policies
(cf s 16 MAA)
A third-party policy does not extend to insure the owner or driver of a motor vehicle against:(a) a liability to pay compensation under the Workers Compensation Acts (or any corresponding law of another State or a Territory of the Commonwealth) to a worker employed by the owner or driver, or(b) a liability which may be incurred by the owner or driver under an agreement unless the liability is one which would have arisen in the absence of the agreement.
15A Exclusion of acts of terrorism from insurance coverage
(1) A third-party policy does not extend to insure the owner or driver of a motor vehicle against a liability that is attributable to an act that, having regard to the nature of the act and the context in which the act was done, it is reasonable to characterise as an act of terrorism.(2) Any lawful activity or any industrial action cannot be characterised as an act of terrorism for the purposes of this section. An act can only be so characterised if it:(a) causes or threatens to cause death, personal injury or damage to property, and(b) is designed to influence a government or to intimidate the public or a section of the public, and(c) is carried out for the purpose of advancing a political, religious, ideological, ethnic or similar cause.(3) This section applies to an act of terrorism that occurs on or after 1 January 2002 and before such date as may be appointed by proclamation for the purposes of this section.(4) This section does not affect any claim that is paid in full before the date of assent to the Motor Accidents Compensation Amendment (Terrorism) Act 2002.
16 Indemnification of insured persons
(cf s 17 MAA)
A licensed insurer is, despite any other law, liable to indemnify the insured persons under a third-party policy of the insurer in respect of any liability which the policy purports to cover.
17 Liability of licensed insurers and insured persons where correct insurance premiums not paid
(cf s 18 MAA)
(1) The fact that the correct insurance premium has not been paid in respect of a third-party policy does not affect the validity or operation of the policy.(2) A licensed insurer to whom an incorrect insurance premium has been paid may recover any balance outstanding of the premium from the person liable to pay it as a debt in a court of competent jurisdiction.(3) If:(a) an insured person under a third-party policy incurs a liability against which he or she is insured under the policy, and(b) the insured person deliberately avoided paying the correct premium for the third-party policy by making a statement in connection with the issue of the policy that the insured person knew was false,the licensed insurer may recover from the insured person as a debt in a court of competent jurisdiction:(c) where the money paid and the costs incurred by the licensed insurer in respect of the liability do not exceed $2000—the amount of the money paid and costs incurred, and(d) where the money paid and costs incurred by the licensed insurer exceed $2000—$2000.(4) The licensed insurer is not entitled to recover an amount under subsection (3) if the licensed insurer has recovered that amount in the exercise of any other right of recovery under this Part.
18 Effect of change of ownership of motor vehicle or trader’s business
(cf s 19 MAA)
(1) While a third-party policy is in force in relation to a motor vehicle, the third-party policy enures in favour of the owner for the time being of the vehicle (and any driver of the vehicle) despite any change in the ownership of the vehicle.(2) While a third-party policy is in force in relation to a motor vehicle to which a trader’s plate issued in respect of any business is fixed, the third-party policy enures in favour of the person who for the time being is carrying on the business (and any driver of any such vehicle) despite any change in the ownership of the business.
19 Notice of change of registered particulars and other information relating to motor vehicles
(cf s 19A MAA)
(1) RMS is required to notify the licensed insurer under a third-party policy in force in relation to a motor vehicle and, if requested to do so by the Authority, the Authority, of any change in any registered particulars relating to the motor vehicle which is notified to RMS.(2) If, as a consequence of the change in ownership of a motor vehicle, a change in the place at which the motor vehicle is usually garaged or any other change, a higher premium would be payable in relation to the vehicle than the premium paid or payable under the third-party policy in force in relation to the vehicle before the change occurred, the licensed insurer may recover the appropriate difference from the owner as a debt in a court of competent jurisdiction.
20 Right of insurer against unauthorised driver of motor vehicle
(cf s 22 MAA)
If:(a) a person uses or operates a motor vehicle without the authority of the owner or without reasonable grounds for believing that he or she had the authority of the owner, and(b) a licensed insurer pays any money or incurs any costs (under a third-party policy) in respect of a motor accident arising from that use or operation,the insurer may recover the money so paid and the costs so incurred from the person as a debt in a court of competent jurisdiction.
21 Recovery of an excess in certain cases
(cf s 23 MAA)
(1) If an insured person incurs a liability against which he or she is insured under a third-party policy and the liability arises out of a motor accident which was to the extent of more than 25% the fault of the insured person, the licensed insurer may recover from the insured person as a debt in a court of competent jurisdiction:(a) where the money paid and costs incurred by the licensed insurer in respect of the liability do not exceed $500—the amount of the money paid and costs incurred, or(b) where the money paid and costs incurred by the licensed insurer exceed $500—$500.(2) The licensed insurer is not entitled to recover an amount under this section if the licensed insurer exercises any other right of recovery against the insured person under section 20.
22 Extension of indemnity to insured person’s estate
(cf s 24 MAA)
(1) A third-party policy, to the extent of the insurance effected by that policy:(a) extends, if the insured person is dead, to indemnify the insured person’s estate against:(i) liability arising under any cause of action which, by virtue of section 2 of the Law Reform (Miscellaneous Provisions) Act 1944, survives against the insured person’s estate, and(ii) liability arising by operation of section 2 (4) of that Act, and(b) extends to indemnify the insured person or, if the insured person is dead, to indemnify the insured person’s estate against:(i) liability arising where the insured person or, as the case may be, the insured person’s estate has in any proceedings been joined as an alternative defendant, and(ii) liability arising where the insured person or, as the case may be, the insured person’s estate has served or has been served with a notice in writing under section 3 (1) of the Law Reform (Miscellaneous Provisions) Act 1946, and(iii) liability arising where the insured person or, as the case may be, the insured person’s estate claims contribution from some other person as a joint tortfeasor or has a claim made against the insured person or the insured person’s estate, as the case may be, as a joint tortfeasor.(2) In subsection (1), insured person means a person who is insured or indemnified against liability in respect of the death of or injury to a person caused by the fault of the owner or driver of a motor vehicle in the use or operation of the vehicle under:(a) a third-party policy, or(b) a policy of insurance complying with the provisions of any law in force in any part of the Commonwealth (other than this State) which requires the owner or driver of a motor vehicle to be insured against any such liability, or(c) the provisions of any other law in force in any part of the Commonwealth (other than this State) which indemnify the owner or driver of a motor vehicle against any such liability.
23 Entry of judgment against licensed insurer
(cf s 25 MAA)
(1) If a judgment obtained in any court relating to liability in respect of the death of or injury to a person caused by the fault of the owner or driver of an insured motor vehicle in the use or operation of the vehicle is not satisfied in full within 30 days after the judgment is entered, the court must, on the application of the judgment creditor, direct that the judgment be entered against the licensed insurer of the vehicle.(2) If execution on the judgment is stayed pending appeal, the time during which execution is stayed is to be excluded in calculating the 30-day period.(3) Notice of intention to make the application is to be served on the licensed insurer at least 7 days before the hearing of the application.(4) If the court directs that the judgment be entered against the licensed insurer, the judgment may be enforced as a judgment against the licensed insurer to the extent to which it was not satisfied at the time it was so entered.