Motor Accident Insurance Act 1994


Queensland Crest
Motor Accident Insurance Act 1994
Queensland Motor Accident Insurance Act 1994 Current as at [Not applicable] Indicative reprint note This is an unofficial version of a reprint of this Act that incorporates all proposed amendments to the Act included in the Police Powers and Responsibilities and Other Legislation Amendment Bill 2018. This indicative reprint has been prepared for information only— it is not an authorised reprint of the Act . The point-in-time date for this indicative reprint is the introduction date for the Police Powers and Responsibilities and Other Legislation Amendment Bill 2018—12 June 2018. Detailed information about indicative reprints is available on the Information page of the Queensland legislation website.
© State of Queensland 2018 This work is licensed under a Creative Commons Attribution 4.0 International License.
Not authorised —indicative only Queensland Motor Accident Insurance Act 1994 Contents Part 1 1 2 3 4 4A 4B 5 Part 2 Division 1 6 7 8 9 9A Division 2 10 11 Division 3 12 13 13A 14 14A 15 Division 4 Page Preliminary Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Objects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 References to insurer’s premium, a fee or costs . . . . . . . . . . . . . 17 Meaning of act of terrorism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Application of this Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Motor Accident Insurance Commission Establishment of the commission Establishment of commission . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Constitution of the commission . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Commission to be body corporate . . . . . . . . . . . . . . . . . . . . . . . . 20 Power of delegation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Commission is statutory body . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 General functions of commission Commission’s functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Advisory committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Insurance premiums Insurance premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 The insurer’s premium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Premium rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Recommendations about levies and administration fee . . . . . . . 28 Fixing levies and administration fee . . . . . . . . . . . . . . . . . . . . . . 28 Report and recommendations when costs of insurance exceed the affordability index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 The Nominal Defendant
Motor Accident Insurance Act 1994 Contents Not authorised —indicative only 16 16A 17 18 Division 5 19 Part 3 Division 1 20 20A Division 2 21 22 23 24 25 26 Division 3 27 27A Division 4 28 29 Division 5 30 Part 4 Division 1 31 32 33 Division 2 34 35 36 Division 3 The Nominal Defendant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Nominal Defendant is statutory body . . . . . . . . . . . . . . . . . . . . . 31 Nominal Defendant to keep public office . . . . . . . . . . . . . . . . . . . 31 Nominal Defendant taken to be licensed insurer . . . . . . . . . . . . . 32 Annual report Annual report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Compulsory insurance Obligation to insure Offence of driving uninsured vehicle etc. . . . . . . . . . . . . . . . . . . 33 Temporary gratuitous insurance . . . . . . . . . . . . . . . . . . . . . . . . . 33 Selection of insurer Selection of insurer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Licensed insurer can not decline CTP business . . . . . . . . . . . . . 37 Statutory policy of insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Transfer of registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Motor vehicle must be insured under correct class . . . . . . . . . . . 40 Non application in certain cases . . . . . . . . . . . . . . . . . . . . . . . . . 40 Disbursement of gross insurance premiums Disbursement of gross premiums by transport administration . . 41 Disbursement of gross premiums by insurers who receive premiums directly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 The statutory funds Motor Accident Insurance Fund . . . . . . . . . . . . . . . . . . . . . . . . . 43 Nominal Defendant Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Transfer of CTP business Transfer of CTP business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Claims The insurer Principles for determining the insurer . . . . . . . . . . . . . . . . . . . . . 46 Self-insurer as the insurer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Nominal Defendant as the insurer . . . . . . . . . . . . . . . . . . . . . . . . 47 Duty to notify accidents and claims and provide information Duty to notify accidents to police . . . . . . . . . . . . . . . . . . . . . . . . . 49 Duty to provide information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Duty to notify claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Claims procedures Page 2
37 37A 37B 38 39 40 41 42 43 44 Division 4 45 45A 46 46A 46B 47 48 49 Division 4A 50 Division 5 51 Division 5A 51A 51B 51C 51D Division 6 52 52A 52B 53 Motor Accident Insurance Act 1994 Contents Notice of accident claim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Additional information form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Witness information request made by insurer . . . . . . . . . . . . . . . 53 Multiple insurers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Response to the notice of claim . . . . . . . . . . . . . . . . . . . . . . . . . 55 Minority and legal disabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Insurer must attempt to resolve claim . . . . . . . . . . . . . . . . . . . . . 58 Payment of medical expenses etc. . . . . . . . . . . . . . . . . . . . . . . . 60 Insured person not to admit liability . . . . . . . . . . . . . . . . . . . . . . . 61 Power of insurer to act for insured . . . . . . . . . . . . . . . . . . . . . . . 62 Cooperation between claimant and insurer Duty of claimant to cooperate with insurer . . . . . . . . . . . . . . . . . 62 Panels of recognised medical experts . . . . . . . . . . . . . . . . . . . . . 63 Claimant and insurer may jointly arrange for expert report . . . . . 64 Examination of claimant by medical expert in absence of agreement between the parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Costs of obtaining expert reports where reports obtained by agreement 65 Duty of insurer to cooperate with claimant . . . . . . . . . . . . . . . . . 66 Non-disclosure of certain material . . . . . . . . . . . . . . . . . . . . . . . . 67 Privilege . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Enforcement of divisions 2, 3 and 4 Court’s power to enforce compliance with divs 2, 3 and 4 . . . . . 67 Rehabilitation Obligation to provide rehabilitation services . . . . . . . . . . . . . . . . 68 Compulsory conference Compulsory conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Procedure at conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Parties to exchange mandatory final offers if claim not settled at compulsory conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Time for bringing action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Proceedings in court Insurer to be joint or sole defendant . . . . . . . . . . . . . . . . . . . . . . 78 Recovery of contribution by or from Nominal Defendant in certain cases 79 Exclusion of summary judgment on the basis of admissions . . . 79 Insurer’s right to call and cross-examine insured person . . . . . . 80 Page 3 Not authorised —indicative only
Motor Accident Insurance Act 1994 Contents Not authorised —indicative only 55 55F 57 Division 6A 57A Division 7 58 59 60 60A 61 Division 8 61A Division 9 61B Part 5 Division 1 62 63 64 65 66 67 67A 68 Division 2 69 70 71 72 72A 73 Division 3 74 75 76 Page 4 Exemplary, punitive or aggravated damages . . . . . . . . . . . . . . . Costs in cases involving relatively small awards of damages . . . Alteration of period of limitation . . . . . . . . . . . . . . . . . . . . . . . . . . Extraterritorial operation of limitation of liability Application of limitation of liability to foreign awards . . . . . . . . . . Insurer’s rights of recourse Insurer’s rights of recourse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Recovery in case of fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nominal Defendant’s rights of recourse for uninsured vehicles . Access to information etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nominal Defendant’s rights of recourse against insurer . . . . . . . Changes to claim process if insurance agency is contributor Claim process if insurance agency liable to contribute . . . . . . . . Obligation to provide information to insurance agency Giving insurance agency notice about particular matters . . . . . . Licensed insurers Licensing of insurers Application for licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Determination of application . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conditions of licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Industry deed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Withdrawal or suspension of licence . . . . . . . . . . . . . . . . . . . . . . Effect of withdrawal or suspension on existing liabilities etc. . . . When State may underwrite CTP insurance policies . . . . . . . . . Review of the commission’s decisions by QCAT . . . . . . . . . . . . Supervision of licensed insurers Business plans of licensed insurers . . . . . . . . . . . . . . . . . . . . . . Accounts and returns of licensed insurers . . . . . . . . . . . . . . . . . Audit of accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Information to be provided by insurers . . . . . . . . . . . . . . . . . . . . Declarations from licensed insurer . . . . . . . . . . . . . . . . . . . . . . . Power of Supreme Court to deal with licensed insurers . . . . . . . Special investigations Appointment of investigator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Investigation of related body corporate . . . . . . . . . . . . . . . . . . . . Powers of investigators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 80 82 83 84 86 86 87 87 88 89 90 91 92 93 94 94 96 98 98 99 99 100 101 102 103 104 104
77 78 79 80 81 82 83 84 85 86 87 Part 5A Division 1 87A 87B 87C 87D 87E 87F Division 2 87G 87H 87I 87J 87K 87L 87M 87N 87O Division 3 87P 87Q Division 4 87R 87S Division 5 Motor Accident Insurance Act 1994 Contents Documents produced to investigator . . . . . . . . . . . . . . . . . . . . . . Examination of officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Self-incrimination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Failure of officer to comply with requirement of investigator . . . . Recording of examination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Copy of record of examination may be given to legal practitioner Delegation of powers by investigator . . . . . . . . . . . . . . . . . . . . . Report of investigator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Admission of investigator’s report in evidence . . . . . . . . . . . . . . Costs of investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Offences relating to investigations . . . . . . . . . . . . . . . . . . . . . . . Enforcement Authorised persons Appointment of authorised person . . . . . . . . . . . . . . . . . . . . . . . Functions and powers of authorised person . . . . . . . . . . . . . . . . Authorised person’s employment conditions . . . . . . . . . . . . . . . . Authorised person’s identity card . . . . . . . . . . . . . . . . . . . . . . . . Display of authorised person’s identity card . . . . . . . . . . . . . . . . Protection from liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Powers of authorised persons Power to require information . . . . . . . . . . . . . . . . . . . . . . . . . . . . Application for warrant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Issue of warrant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Special warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Warrants—procedure before entry . . . . . . . . . . . . . . . . . . . . . . . Power to seize evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Receipt for seized things . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Access to seized things . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Return of seized thing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other enforcement matters Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Costs of investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Obstructing or impersonating authorised persons Obstruction of authorised persons . . . . . . . . . . . . . . . . . . . . . . . Impersonation of authorised persons . . . . . . . . . . . . . . . . . . . . . Fraud and false and misleading statements 104 105 105 106 107 107 108 108 109 109 110 110 111 111 112 112 113 113 114 115 115 117 118 118 118 118 119 119 120 120 Page 5 Not authorised —indicative only
Motor Accident Insurance Act 1994 Contents Not authorised —indicative only 87T 87U Division 6 87V Division 7 87W Division 8 87X Part 6 88 88A 89 90 91 92 94 95 96 97 99 100 100A 101 Part 7 Division 1 102 103 104 106 Division 2 107 Division 3 108 Offences involving fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 False or misleading information or documents . . . . . . . . . . . . . . 121 Information from Commissioner of Police Service Information from Commissioner of Police Service . . . . . . . . . . . 122 Proceedings Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 Evidence Evidentiary certificates given by the commission and transport administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 Miscellaneous Information to be provided by licensed insurers . . . . . . . . . . . . . 125 Commission’s power to intervene to establish information processing systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 Register of claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 Transport administration to provide certain information . . . . . . . 128 Insolvent insurers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 Disclosure of information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 Interference with certain documents . . . . . . . . . . . . . . . . . . . . . . 129 Unauthorised policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 Inducement for CTP insurance business prohibited . . . . . . . . . . 130 CTP premiums not to be discounted etc. . . . . . . . . . . . . . . . . . . 133 Penalties for offences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 Indexation of particular amounts . . . . . . . . . . . . . . . . . . . . . . . . . 134 Periodical reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 Transitional provisions Provisions for Act before commencement of Motor Accident Insurance Amendment Act 1999 and a related matter Insurance Act 1960 references . . . . . . . . . . . . . . . . . . . . . . . . . . 136 Motor Vehicles Insurance Act 1936 references . . . . . . . . . . . . . . 136 Personal injury claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 Nominal Defendant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 Provision for Motor Accident Insurance Amendment Act 1999 Regulation for assessment period starting before 30 June 1999 138 Provisions for Motor Accident Insurance Amendment Act 2000 Application of amendments made by the Motor Accident Insurance Amendment Act 2000 to motor vehicle accident claims . . . . . . . 139 Page 6
Not authorised —indicative only 109 110 Division 4 111 Division 6 113 114 Schedule 1 2 3 Motor Accident Insurance Act 1994 Contents Special provision about financial years . . . . . . . . . . . . . . . . . . . . 139 Ratification of action taken in anticipation of amendments made by the Motor Accident Insurance Amendment Act 2000 . . . . . . . . . . . . 139 Provision for Treasury Legislation Amendment Act (No. 2) 2002 Ratification of action taken in anticipation of amendments made by Treasury Legislation Amendment Act (No. 2) 2002 . . . . . . . . . . 140 Transitional provisions for the Motor Accident Insurance and Other Legislation Amendment Act 2010 Termination of s 96 inducement . . . . . . . . . . . . . . . . . . . . . . . . . 141 Termination of s 97(5) inducement . . . . . . . . . . . . . . . . . . . . . . . 142 Policy of insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 Extent of insurance cover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 Insured person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Page 7
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Not authorised —indicative only Motor Accident Insurance Act 1994 Part 1 Preliminary [s 1] Motor Accident Insurance Act 1994 An Act to provide for a compulsory third-party insurance scheme covering liability for personal injury arising out of motor vehicle accidents, and for other purposes Part 1 Preliminary 1 Short title This Act may be cited as the Motor Accident Insurance Act 1994 . 2 Commencement This Act commences on a day to be fixed by proclamation. 3 Objects The objects of this Act are— (a) to continue and improve the system of compulsory third-party motor vehicle insurance ( CTP insurance ), and the scheme of statutory insurance for uninsured and unidentified vehicles, operating in Queensland; and (b) to establish a basis for assessing the affordability of CTP insurance and to keep the costs of CTP insurance at a level the average motorist can afford; and (c) to promote competition in the setting of premiums for CTP insurance; and Current as at [Not applicable] Page 9
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 1 Preliminary [s 4] (d) to provide for the licensing and supervision of insurers providing CTP insurance under CTP insurance policies; and (e) to encourage the speedy resolution of personal injury claims resulting from motor vehicle accidents; and (f) to promote and encourage, as far as practicable, the rehabilitation of claimants who sustain personal injury because of motor vehicle accidents; and (g) to establish and keep a register of motor vehicle accident claims to help the administration of the statutory insurance scheme and the detection of fraud; and (h) to promote measures directed at eliminating or reducing causes of motor vehicle accidents and mitigating their results. 4 Definitions In this Act— act of terrorism see section 4B. administration fee means the fee payable to transport administration for work done in the administration of the statutory insurance scheme. affordability index means 45% of Queensland full-time adult persons ordinary time earnings declared by the Australian Statistician in the original series of the statistician’s average weekly earnings publication most recently published. agricultural machine means an agricultural machine for which registration is required under the Transport Operations (Road Use Management—Vehicle Registration) Regulation 2010 . assessment period see section 13(2). average weekly earnings , for a financial year, means the amount of Queensland full-time adult persons ordinary time earnings declared by the Australian Statistician in the original Page 10 Current as at [Not applicable]
Motor Accident Insurance Act 1994 Part 1 Preliminary [s 4] Not authorised —indicative only series of the statistician’s average weekly earnings publication most recently published before the start of the financial year. claim means motor vehicle accident claim. claimant means a person by whom, or on whose behalf, a claim is made. Examples of claimants— 1 An attorney acts under an enduring power of attorney under the Powers of Attorney Act 1998 for a person injured in a motor vehicle accident. In this case, both the attorney (in the attorney's representative capacity) and the person for whom the attorney acts are regarded as claimants. 2 A guardian or an administrator acts under the Guardianship and Administration Act 2000 for a person injured in a motor vehicle accident. In this case, the guardian or administrator (in his or her representative capacity) and the injured person are regarded as claimants. class (a) of CTP insurance (or CTP insurance policies)—means CTP insurance (or CTP insurance policies) for a particular class of motor vehicles; or (b) of motor vehicles—means a class of motor vehicles created by classification under a regulation. commission means the Motor Accident Insurance Commission. commissioner means the insurance commissioner. compulsory conference see section 51A(1). costs (a) when used in reference to legal costs, includes disbursements; and (b) when used in reference to the costs of an insurer on a claim, includes— (i) the amount paid out by the insurer on the claim to the claimant or for the claimant’s benefit, including— Current as at [Not applicable] Page 11
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 1 Preliminary [s 4] (A) the cost to the insurer of providing rehabilitation services in connection with the claim; and (B) the cost to the insurer of paying private hospital, medical and pharmaceutical expenses in connection with the claim; and (ii) the cost to the insurer of investigating the claim and of litigation related to the claim (but not the insurer’s general administration costs). costs statement see section 51B(6)(e). court , in relation to a claim, means— (a) if a proceeding based on the claim has been brought— the court hearing the proceeding; or (b) if no proceeding based on the claim has been brought— a court with jurisdiction to hear the claim. criminal history , of a person, means the record of offences of which the person has been convicted in Queensland or elsewhere before or after the commencement of this Act. CTP is an abbreviation of ‘compulsory third-party’. CTP insurance see section 3(a). CTP insurance policy means— (a) a policy of insurance under this Act for a motor vehicle insuring against liability for personal injury caused by, through or in connection with the motor vehicle; or (b) a policy of insurance, or a statutory indemnification, for a motor vehicle registered under the law of another State or a Territory, providing insurance, or indemnifying against liability, for personal injury caused by, through or in connection with the vehicle anywhere in Australia. declared costs limit means the amount prescribed under a regulation as the declared costs limit. Page 12 Current as at [Not applicable]
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 1 Preliminary [s 4] Note— Under section 100A, the Minister must make a recommendation about the amount to be prescribed. eligible person means a person who, under the National Injury Act, section 12, is eligible to participate in the injury insurance scheme. former Act means the Motor Vehicles Insurance Act 1936 . GST means the tax payable under the GST law. GST law means— (a) A New Tax System (Goods and Services Tax) Act 1999 (Cwlth); and (b) the related legislation of the Commonwealth dealing with the imposition of a tax on the supply of goods and services. GVM means gross vehicle mass. industry deed means an agreement, in the form approved by regulation, between the commission, transport administration, the Nominal Defendant and licensed insurers regulating the conduct of CTP insurance business and matters incidental to— (a) the conduct of the business; or (b) the statutory insurance scheme. Editor’s note— For a statement of the subjects that may be covered by the industry deed, see section 65 (Industry deed). injured person means a person who suffers personal injury because of a motor vehicle accident. injury insurance scheme means the national injury insurance scheme, Queensland established under the National Injury Act, chapter 2. injury insurance scheme levy means the levy under the National Injury Act. Current as at [Not applicable] Page 13
Motor Accident Insurance Act 1994 Part 1 Preliminary [s 4] Not authorised —indicative only Page 14 insurance agency means the National Injury Insurance Agency, Queensland established under the National Injury Act. insurance premium means the gross premium for a CTP insurance policy (including levies and administration fee). insured motor vehicle means a motor vehicle for which a CTP insurance policy is in force. insured person means— (a) a person who is insured under a CTP insurance policy or, if the person is dead, the person’s personal representative; or (b) a person whose wrongful act or omission causes personal injury for which an action lies against the Nominal Defendant under this Act or, if the person is dead, the person’s personal representative. insurer’s premium means an insurer’s consideration for providing insurance under a CTP insurance policy. licence means a licence under part 5. licensed insurer means an insurer that holds a licence, other than an insurer whose licence is under suspension. lower offer limit means the amount prescribed under a regulation as the lower offer limit. Note— Under section 100A, the Minister must make a recommendation about the amount to be prescribed. mandatory final offer see section 51C(2). mobile machinery has the meaning given by the Transport Operations (Road Use Management—Vehicle Registration) Regulation 2010 . motor vehicle means a vehicle for which registration is required under the Transport Operations (Road Use Management—Vehicle Registration) Regulation 2010 and includes a trailer. Current as at [Not applicable]
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 1 Preliminary [s 4] motor vehicle accident means an incident from which a liability for personal injury arises that is covered by insurance under the statutory insurance scheme. motor vehicle accident claim means a claim for damages based on a liability for personal injury arising out of a motor vehicle accident and, for a fatal injury, includes a claim on behalf of the deceased’s dependants or estate. National Injury Act means the National Injury Insurance Scheme (Queensland) Act 2016 . non-medicinal drug means a drug other than one genuinely and lawfully consumed for medical or therapeutic purposes. officer has the same meaning as in the Corporations Act. official panel of medical experts see section 45A(1)(a). participant , in the injury insurance scheme, see the National Injury Act, section 14(1). personal injury includes— (a) fatal injury; and (b) prenatal injury; and (c) damage to spectacles, contact lenses, dentures, hearing aids, crutches, wheelchairs, artificial limbs and prosthetic devices. public place has the meaning given by the Transport Operations (Road Use Management) Act 1995 . registered operator , of a motor vehicle, means a person recorded in the details of the registration of the vehicle as the registered operator or as the owner of the motor vehicle. registration , of a motor vehicle, includes a permit, plate or other authorisation under the Transport Operations (Road Use Management—Vehicle Registration) Regulation 2010 permitting a motor vehicle to be used on a road without registration but does not include an authorisation under section 107 of that regulation. Current as at [Not applicable] Page 15
Motor Accident Insurance Act 1994 Part 1 Preliminary [s 4] Not authorised —indicative only Page 16 rehabilitation means the use of medical, psychological, physical, social, educational and vocational measures (individually or in combination)— (a) to restore, as far as reasonably possible, physical or mental functions lost or impaired through personal injury; and (b) to optimise, as far as reasonably possible, the quality of life of a person who suffers the loss or impairment of physical or mental functions through personal injury. related body corporate , for an insurer, has the meaning given by the Corporations Act. road has the meaning given by the Transport Operations (Road Use Management) Act 1995 . self-insurer means— (a) the Commonwealth; or (b) a State (other than Queensland) or a Territory that does not have its motor vehicles insured under CTP insurance policies. serious personal injury see the National Injury Act, schedule 1. share of the market for CTP insurance business means a percentage, calculated by the commission under principles prescribed by regulation, representing the proportion that an insurer’s share of total CTP insurance premiums bears to the total premiums for CTP insurance policies of classes specified by regulation. statutory insurance scheme means the insurance scheme established by this Act. trailer means a vehicle without motive power designed to be hauled by a motor vehicle. transport administration means— (a) the chief executive of the department within which the Transport Planning and Coordination Act 1994 is administered; or Current as at [Not applicable]
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 1 Preliminary [s 4A] (b) a person who is, by delegation or direction of the chief executive, responsible for carrying out functions relevant to the administration of the statutory insurance scheme. treatment, care and support needs , of a person, see the National Injury Act, section 8. uninsured motor vehicle means a motor vehicle for which there is no CTP insurance policy in force, other than a motor vehicle owned by a self-insurer or a trailer. upper offer limit means the amount prescribed under a regulation as the upper offer limit. Note— Under section 100A, the Minister must make a recommendation about the amount to be prescribed. wrongful act or omission includes a negligent act or omission. 4A References to insurer’s premium, a fee or costs A reference in this Act to an insurer’s premium, a fee or costs extends to any related charge (whether treated as a component of the premium, fee or costs or separately identified) to reimburse or offset the liability of the person to whom the premium, fee or costs are payable for GST. 4B Meaning of act of terrorism (1) An act of terrorism is an act done or threat made by a person— (a) for an ethnic, ideological, political, religious or similar purpose; and (b) with the intention to— (i) cause personal injury or damage to property; and (ii) influence a government or put the public, or a section of the public, in fear. Current as at [Not applicable] Page 17
Motor Accident Insurance Act 1994 Part 1 Preliminary [s 5] (2) It does not matter whether the person is acting alone or with others or in connection with an organisation or government. (3) To decide whether the act was done or the threat was made for a purpose or with an intention mentioned in subsection (1), regard may be had to the nature of the act or threat and the context in which the act was done or the threat was made. Not authorised —indicative only 5 Application of this Act (1) This Act applies to personal injury caused by, through or in connection with a motor vehicle if, and only if, the injury— (a) is a result of— (i) the driving of the motor vehicle; or (ii) a collision, or action taken to avoid a collision, with the motor vehicle; or (iii) the motor vehicle running out of control; or (iv) a defect in the motor vehicle causing loss of control of the vehicle while it is being driven; and (b) is caused, wholly or partly, by a wrongful act or omission in respect of the motor vehicle by a person other than the injured person. (2) For an uninsured motor vehicle, subsection (1) applies only if the motor vehicle accident out of which the personal injury arises happens on a road or in a public place. (3) However, this Act does not apply to personal injury caused by, through or in connection with— (a) a tractor, backhoe, bulldozer, end-loader, forklift, industrial crane or hoist, or other mobile machinery, other than an agricultural machine; or (b) an agricultural machine; or (c) a motor vehicle adapted to run on rail or tram tracks; or (d) an amphibious vehicle; or (e) a motor vehicle of a class prescribed by regulation; Page 18 Current as at [Not applicable]
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 2 Motor Accident Insurance Commission [s 6] unless the motor vehicle accident out of which the injury arises happens on a road. (4) For subsection (1)(b), the reference to a wrongful act or omission in respect of the motor vehicle does not include the use of the motor vehicle at the particular time it is being used for the actual doing of an act or making of a threat that is an act of terrorism. (5) The following is an example of a particular time when a motor vehicle is not being used for the actual doing of an act that is an act of terrorism— A is the driver of a motor vehicle from which a bomb is thrown at a government building. It is established that at the time the bomb is thrown the motor vehicle is being used for an act of terrorism. In driving away from the building after the bomb is thrown, A runs into a motor vehicle being driven by B. At the time A’s motor vehicle runs into B’s motor vehicle A’s motor vehicle is not being used for the actual doing of an act of terrorism. (6) Subsection (4) only applies to an act of terrorism happening on or after 1 January 2002. Part 2 Motor Accident Insurance Commission Division 1 Establishment of the commission 6 Establishment of commission The Motor Accident Insurance Commission is established. 7 Constitution of the commission (1) The insurance commissioner, in the commissioner’s official capacity (but not in the capacity of Nominal Defendant), constitutes the commission. (2) The insurance commissioner is to be employed under the Public Service Act 2008 . Current as at [Not applicable] Page 19
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 2 Motor Accident Insurance Commission [s 8] 8 Commission to be body corporate (1) The commission— (a) is a body corporate; and (b) has a seal; and (c) may sue and be sued under the name Motor Accident Insurance Commission. (2) The commission has all the powers of an individual and may, for example— (a) enter into contracts; and (b) acquire, hold, dispose of, and deal with, property; and (c) employ staff (including temporary staff); and (d) appoint agents and attorneys; and (e) engage consultants; and (f) fix charges, and other terms, for the provision of services by the commission. (3) The commission’s seal is to be kept as directed by the commissioner and may be used only as directed or authorised by the commissioner. (4) Judicial notice must be taken of the imprint of the seal appearing on a document and the document must be presumed to have been properly sealed unless the contrary is proved. 9 Power of delegation The commission may delegate its powers under this Act. 9A Commission is statutory body (1) Under the Statutory Bodies Financial Arrangements Act 1982 , the commission is a statutory body. (2) The Statutory Bodies Financial Arrangements Act 1982 , part 2B sets out the way in which the commission’s powers under Page 20 Current as at [Not applicable]
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 2 Motor Accident Insurance Commission [s 10] this Act are affected by the Statutory Bodies Financial Arrangements Act 1982 . Division 2 General functions of commission 10 Commission’s functions (1) The commission’s functions are to— (a) supervise insurers operating under the statutory insurance scheme and issue, suspend or withdraw licences for insurers operating under the scheme; and (b) establish and revise prudential standards with which licensed insurers must comply; and (c) monitor the management of claims by insurers under the statutory insurance scheme and, in particular, the insurers’ compliance with their obligations under part 4; and (ca) appoint, under the industry deed, a person to arbitrate disputes between 2 or more insurers about a motor vehicle accident claim; and (d) fix for each class of CTP insurance the range within which an insurer’s premium must fall; and (da) recommend the levies and the administration fee payable under this Act; and (e) monitor the availability, adequacy and use of rehabilitation services for claimants who suffer personal injury in motor vehicle accidents and develop programs, resources and guidelines to overcome deficiencies in the services; and (f) provide funds for, or contribute in other ways to, the provision of infrastructure to facilitate the rehabilitation of persons injured in motor vehicle accidents; and Current as at [Not applicable] Page 21
Motor Accident Insurance Act 1994 Part 2 Motor Accident Insurance Commission [s 10] Not authorised —indicative only Page 22 (g) provide funds for research and education in the field of rehabilitation and the provision of rehabilitation services; and (h) provide funds for research into the causes of motor vehicle accidents and their prevention; and (ha) establish and maintain a call centre from which the public may obtain information on the statutory insurance scheme; and (i) carry out, or contribute to, advertising campaigns to increase public awareness of the causes of motor vehicle accidents, and of the economic, social and personal cost of motor vehicle accidents; and (j) promote and, if funds are available, make financial contributions towards— (i) the regular inspection of motor vehicles to ensure safety and roadworthiness; and (ii) the training of drivers (including the provision of defensive driving courses); and (iii) training in first aid; and (iv) the provision, maintenance and support of the infrastructure necessary to reduce the incidence of motor vehicle accidents and minimise the results; and (k) monitor the efficiency of the statutory insurance scheme and, in particular, the proportion of the funds of the scheme paid to claimants or applied for their direct benefit; and (l) develop and coordinate strategies to identify and combat fraud in or related to motor vehicle accident claims; and (m) keep the industry deed under review and make recommendations for its amendment; and (n) keep the statutory insurance scheme generally under review and make recommendations for its amendment; and Current as at [Not applicable]
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 2 Motor Accident Insurance Commission [s 11] (o) conduct research and collect statistics about the statutory insurance scheme. Note— For the functions of the commission in relation to the injury insurance scheme, see the National Injury Act, chapter 5. (2) In determining prudential standards for licensed insurers, the commission must have proper regard to the prudential standards that apply to the insurance industry under Commonwealth legislation. 11 Advisory committees (1) The commission may establish 1 or more advisory committees to advise on the exercise of the commission’s statutory functions. (2) The matters on which an advisory committee may provide advice are to be decided by the commission with the approval of the Minister. (3) An advisory committee is to consist of persons appointed by the Minister on the commission’s nomination. (4) The terms on which the members of an advisory committee hold office are to be decided by the Minister. Division 3 Insurance premiums 12 Insurance premiums (1) An insurance premium under the statutory insurance scheme consists of the following components— (a) the insurer’s premium; (b) the statutory insurance scheme levy; (c) the hospital and emergency services levy; (d) the Nominal Defendant levy; (e) the injury insurance scheme levy; Current as at [Not applicable] Page 23
Motor Accident Insurance Act 1994 Part 2 Motor Accident Insurance Commission [s 12] Not authorised —indicative only (f) the administration fee. (2) The insurer’s premium is the insurer’s consideration for providing the insurance. (3) The statutory insurance scheme levy is to cover the estimated costs of— (a) the administration of this Act (other than costs associated with the Nominal Defendant scheme) for the financial year in which the levy is fixed, together with any shortfall from previous financial years; and (b) the commission performing its functions under the National Injury Act, chapter 5 for the financial year in which the levy is fixed. (4) The hospital and emergency services levy is to cover a reasonable proportion of the estimated cost of providing public hospital services and emergency services for the financial year for which the levy is fixed having regard to the number of people who— (a) are injured in motor vehicle accidents; and (b) make use of public hospital services and emergency services as a result of their injuries; and (c) are claimants or potential claimants under the statutory insurance scheme, but are not— (i) participants in the injury insurance scheme; or (ii) eligible persons. (5) The Nominal Defendant levy is to cover the estimated costs of the Nominal Defendant scheme for the financial year or other period for which the levy is fixed together with any shortfall from previous financial years. (6) The administration fee is the fee payable to transport administration for work done in the administration of the statutory insurance scheme. (7) The administration fee is a controlled receipt for the purposes of the Financial Accountability Act 2009 . Page 24 Current as at [Not applicable]
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 2 Motor Accident Insurance Commission [s 13] 13 The insurer’s premium (1) An insurer’s premium is to be set by each licensed insurer, within limits fixed by the commission, for each class of insurance. (2) The premiums are to relate to a period (an assessment period ) fixed under a regulation. (3) The insurer’s premium is to be set by the insurer on the basis that the insurance is to cover a registration period of 1 year. (3A) Subsection (3B) applies to a CTP insurance policy— (a) that comes into force after 30 June 2003; and (b) for which a person is entitled to an input tax credit for the insurer’s premium component of the insurance premium for the policy. (3B) The insurer’s premium consists of— (a) the amount set under subsection (1) for the class of insurance to which the policy relates; and (b) an additional amount prescribed under a regulation. (4) If the registration period is more or less than 1 year, the insurer’s premium for the relevant CTP policy is— (a) the proportion of the insurer’s premium for 1 year that the period of registration bears to 1 year; and (b) an additional amount fixed on a basis prescribed under a regulation. (5) A regulation under subsection (3B)(b) may prescribe a different amount for each class of insurance provided by each licensed insurer. (6) In this section— input tax credit has the meaning given by the A New Tax System (Goods and Services Tax) Act 1999 (Cwlth), section 195-1. Current as at [Not applicable] Page 25
Motor Accident Insurance Act 1994 Part 2 Motor Accident Insurance Commission [s 13A] Not authorised —indicative only 13A Premium rates (1) This section describes the process for setting the insurer’s premiums, under section 13(1), for each assessment period. (2) The commission first fixes limits of insurer’s premium for each class of CTP insurance. (3) The limits consist of a floor amount (below which the premium can not be set) and a ceiling amount (above which the premium can not be set). (4) Before the commission fixes the limits, the commission must invite written submissions from— (a) licensed insurers on matters relevant to the fixing of the limits and, in particular, on— (i) current factors and trends influencing the cost of insurance under the statutory insurance scheme; and (ii) any other factors that should, in the opinion of the insurers, influence the permissible range of insurers’ premiums for the assessment period; and (b) major organisations representing motorists in Queensland. (5) The commission must at least once in each year obtain an actuarial analysis of the statutory insurance scheme and, at least once in each quarter, obtain an actuarial review of current trends that could affect the financial soundness of the scheme. (6) After considering the financial soundness of the statutory insurance scheme in the light of the most recent actuarial analysis and quarterly review obtained under subsection (5), the submissions made in response to the commission’s invitations and other material the commission considers relevant, the commission must— (a) fix the limits of insurer’s premium for each class of CTP insurance; and (b) give each licensed insurer a written notice— Page 26 Current as at [Not applicable]
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 2 Motor Accident Insurance Commission [s 13A] (i) stating the limits fixed for each class of CTP insurance; and (ii) requiring the insurer to submit its insurer’s premiums for each class of CTP insurance for the relevant assessment period on or before a date stated in the notice; and (iii) specifying other requirements with which the insurer’s submission must comply. (7) The premiums must be submitted in accordance with requirements specified in the notice within a time limit fixed under a regulation. (8) Each licensed insurer must give the commission written notice of the premiums set by the insurer on or before the date stated in the commission’s notice. (9) On receipt of the notice from the insurer, the commission must, within a time limit fixed by a regulation— (a) record the premiums set by the insurer for the relevant assessment period for each class of CTP insurance; and (b) give the insurer a written notice confirming the insurer’s insurance premiums for the relevant assessment period; and (c) notify transport administration of each insurer’s insurance premiums for the relevant assessment period. (10) If a licensed insurer— (a) fails to submit premiums for each class of CTP insurance as required by the commission; or (b) sets a premium outside the limits allowed by the commission; the commission may, by written notice to the insurer, withdraw the insurer’s licence. Current as at [Not applicable] Page 27
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 2 Motor Accident Insurance Commission [s 14] 14 Recommendations about levies and administration fee (1) At least 4 months before the end of each financial year, the commission must make recommendations to the Minister on the amount of— (a) the statutory insurance scheme levy for the next financial year; and (b) the hospital and emergency services levy for the next financial year; and (c) the Nominal Defendant levy for the next financial year and the component, if any, to be included in the levy for satisfying liabilities of the Nominal Defendant under section 33(2); and (d) the administration fee for the next financial year. Note— For the commission’s role in making recommendations about the injury insurance scheme levy, see the National Injury Act, section 98. (2) A levy mentioned in subsection (1) or the administration fee may vary according to any 1 or more of the following factors— (a) the class of CTP insurance; (b) the period of insurance; (c) any other factor stated in a regulation. (3) If there is an unexpected increase in the Nominal Defendant’s liabilities that necessitates, in the commission’s opinion, an increase in the Nominal Defendant levy before the end of a financial year for which the levy has been fixed, the commission may, at any time, recommend a special increase in the Nominal Defendant levy. 14A Fixing levies and administration fee (1) Each of the following are to be fixed by regulation for each financial year— (a) the statutory insurance scheme levy; Page 28 Current as at [Not applicable]
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 2 Motor Accident Insurance Commission [s 15] (b) the hospital and emergency services levy; (c) the Nominal Defendant levy; (d) the administration fee. (2) A regulation fixing levies and the administration fee for a particular financial year must be made at least 3 months before the beginning of the financial year. (3) However— (a) if a regulation fixing the levies and administration fee for a particular financial year is not made at least 3 months before the beginning of the relevant financial year— (i) the regulation commences 3 months after it is notified or on a later date specified in the regulation; and (ii) the levies and administration fee last fixed continue until the regulation commences; and (b) if the commission recommends a special increase in the Nominal Defendant levy, a regulation giving effect to the recommendation may be made at any time and comes into force on the date the regulation is notified or a later date specified in the regulation. 15 Report and recommendations when costs of insurance exceed the affordability index (1) The costs of CTP insurance exceed the affordability index if the insurance premium for a CTP insurance policy for a class 1 motor vehicle (assuming the insurer’s premium is set at the highest amount set by a licensed insurer) exceeds the affordability index. (2) If the costs of CTP insurance exceed the affordability index, the commission must give the Minister a report about the effect of current trends on the affordability of CTP insurance. (3) Subsection (4) applies if the commission considers changes to the statutory insurance scheme or the injury insurance scheme Current as at [Not applicable] Page 29
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 2 Motor Accident Insurance Commission [s 16] are necessary to counter the effect of undesirable trends on the affordability of CTP insurance. (4) The commission may, in its report, recommend the changes. (5) If the report recommends changes to the injury insurance scheme, the commission must give a copy of the report to the Treasurer. (6) In fixing the range within which an insurer’s premium for a class 1 motor vehicle must fall, the commission is not to be influenced by the fact that the proposed range could result in the costs of CTP insurance exceeding the affordability index if the ceiling amount is, according to actuarial advice, appropriate to ensure the financial soundness of the scheme. (7) The Minister must, as soon as practicable after receiving a report under subsection (2), cause a copy of the report to be laid before the Legislative Assembly. (8) In this section— class 1 motor vehicle means a motor vehicle of that class under a regulation. insurance premium , for a CTP insurance policy for a class 1 motor vehicle, does not include the relevant insolvency liability component or an amount prescribed under section 13(3B)(b) for the insurer’s premium component of the insurance premium for the policy. relevant insolvency liability component means the amount included in the Nominal Defendant levy that the Minister considers is attributable to satisfying liabilities of the Nominal Defendant under section 33(2). Division 4 The Nominal Defendant 16 The Nominal Defendant (1) The Nominal Defendant— (a) is a body corporate; and Page 30 Current as at [Not applicable]
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 2 Motor Accident Insurance Commission [s 16A] (b) has a seal; and (c) may sue and be sued under the name Nominal Defendant. (2) The commissioner is the Nominal Defendant. (3) The Nominal Defendant has all the powers of an individual and may, for example— (a) enter into contracts; and (b) acquire, hold, dispose of, and deal with, property; and (c) employ staff (including temporary staff); and (d) appoint agents and attorneys; and (e) engage consultants. (4) The Nominal Defendant may delegate powers under this Act. (5) The Nominal Defendant’s seal is to be kept as directed by the commissioner and may be used only as directed or authorised by the commissioner. (6) Judicial notice must be taken of the imprint of the seal appearing on a document and the document must be presumed to have been properly sealed unless the contrary is proved. 16A Nominal Defendant is statutory body (1) Under the Statutory Bodies Financial Arrangements Act 1982 , the Nominal Defendant is a statutory body. (2) The Statutory Bodies Financial Arrangements Act 1982 , part 2B sets out the way in which the Nominal Defendant’s powers under this Act are affected by the Statutory Bodies Financial Arrangements Act 1982 . 17 Nominal Defendant to keep public office (1) The Nominal Defendant must have a public office. Current as at [Not applicable] Page 31
Motor Accident Insurance Act 1994 Part 2 Motor Accident Insurance Commission [s 18] (2) Legal process is served personally on the Nominal Defendant by leaving it at the Nominal Defendant’s public office with a person apparently employed at the office. Not authorised —indicative only 18 Nominal Defendant taken to be licensed insurer The Nominal Defendant is taken to be a licensed insurer (other than for parts 3 and 5) and is bound by the industry deed. Division 5 Annual report 19 Annual report (1) The commission must report annually under the Financial Accountability Act 2009 . (2) The report must— (a) include a report dealing with all significant aspects of the operation of the statutory insurance scheme, with particular reference to the operation of the provisions affecting the management of motor vehicle accident claims; and (b) contain information about the cost to the community of motor vehicle accidents for the relevant financial year; and (c) contain information about the cost of administering this Act and the Nominal Defendant scheme for the financial year; and (d) contain further information that may be required by regulation; and (e) include the audited accounts of the Motor Accident Insurance Fund and the Nominal Defendant Fund. Note— See also the National Injury Act, section 104. (3) In this section— Page 32 Current as at [Not applicable]
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 3 Compulsory insurance [s 20] motor vehicle accident includes an incident resulting in serious personal injury in relation to which the National Injury Act applies. Part 3 Compulsory insurance Division 1 Obligation to insure 20 Offence of driving uninsured vehicle etc. (1) A person must not drive an uninsured motor vehicle on a road or in a public place. Maximum penalty—80 penalty units. (2) A person who is the owner of an uninsured motor vehicle must not permit someone else to drive it on a road or in a public place. Maximum penalty—80 penalty units. (3) It is a defence to a charge of an offence against this section to prove that the defendant had reasonable grounds to believe and did believe the motor vehicle was an insured motor vehicle. (4) This section does not apply to a motor vehicle of a class exempted from its application by regulation. (5) Also, this section does not apply to a motor vehicle to which a gratuitous CTP insurance policy under section 20A(2) relates. 20A Temporary gratuitous insurance (1) This section applies if a person has been issued a permit under the Transport Operations (Road Use Management—Vehicle Registration) Regulation 2010 , section 108, authorising the use of an unregistered motor vehicle on roads. Current as at [Not applicable] Page 33
Motor Accident Insurance Act 1994 Part 3 Compulsory insurance [s 21] (2) A gratuitous CTP insurance policy in terms of the schedule under which the Nominal Defendant is the insurer is taken to be in force for the motor vehicle while the permit is in force. (3) However, subsection (2) does not apply for any period when a CTP insurance policy is otherwise in force for the motor vehicle while the permit is in force. Not authorised —indicative only Division 2 Selection of insurer 21 Selection of insurer (1) On lodging an application for the registration of a motor vehicle with transport administration, the applicant must select a licensed insurer to be the insurer under the CTP insurance policy for the vehicle by exercising 1 of the following options— (a) the applicant may, at the time of lodging the application, nominate, in a way approved by transport administration, a particular licensed insurer to be the insurer under the CTP insurance policy for the vehicle and pay the appropriate insurance premium to transport administration; (b) the applicant may lodge with the application a certificate in a form approved by the commission certifying that the appropriate insurance premium has been paid to the licensed insurer on whose behalf the certificate is issued. (2) The registered operator of a registered motor vehicle may, on lodging an application for renewal of registration or at any other time, change the insurer for the vehicle as from the end of the current registration period by nominating, in a way approved by transport administration, another licensed insurer as the insurer of the motor vehicle. (3) However— (a) if a registered operator lodges an application for renewal of registration before the end of a current period of Page 34 Current as at [Not applicable]
Motor Accident Insurance Act 1994 Part 3 Compulsory insurance [s 21] Not authorised —indicative only registration, a nomination to change the insurer for the period for which the renewal is to take effect can not be made after the time of lodging the application for renewal; and (b) a nomination under subsection (2) becomes void if, between the time it is lodged and the time it is to take effect— (i) the registration of the motor vehicle is transferred; or (ii) a further notice of nomination is lodged with transport administration under subsection (2). (4) On lodging an application for renewal of the registration of a motor vehicle with transport administration, the applicant must— (a) pay the appropriate insurance premium to transport administration; or (b) lodge with transport administration a certificate in a form approved by the commission certifying that the appropriate insurance premium (for the period for which the registration is to be renewed) has been paid to the licensed insurer on whose behalf the certificate is issued. (5) If an applicant for registration or renewal of registration of a motor vehicle pays to transport administration an amount that is (after subtracting any amount payable to transport administration by way of registration fees and charges) less than the appropriate insurance premium but within the tolerances set by the commission— (a) the applicant is taken to have paid the appropriate insurance premium; and (b) the amount is to be applied as follows— (i) first to paying the registration fees and charges, the administration fee and the levies; (ii) secondly to paying the remaining balance to the insurer. Current as at [Not applicable] Page 35
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 3 Compulsory insurance [s 21] (6) However, in a case to which subsection (5) applies, the CTP insurer may recover, as a debt, from the registered operator of the motor vehicle the difference between the insurer’s premium the insurer would have received if the insurance premium had been paid in full and the amount actually received by the insurer. (7) The commission may— (a) fix tolerances for subsection (5); or (b) change or replace tolerances previously fixed for subsection (5). (8) When the commission fixes the tolerances (or changes or replaces tolerances previously fixed), the commission must give written notice of the tolerances (or the new tolerances) to transport administration and all licensed insurers. (9) For this section— (a) a person is taken to have made a nomination in a way approved by transport administration if the nomination is communicated to transport administration in a way transport administration considers acceptable; and (b) a person is taken to have lodged a certificate with transport administration if the certificate or its contents are transmitted to, and received by, transport administration in a way transport administration considers acceptable. (10) In this section— appropriate insurance premium means the gross insurance premium calculated by reference to— (a) the period for which registration is to be granted or renewed; and (b) the class of motor vehicle; and (c) the insurer’s premium for the insurer last selected under this section for the relevant class of insurance. Page 36 Current as at [Not applicable]
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 3 Compulsory insurance [s 22] 22 Licensed insurer can not decline CTP business (1) A CTP insurance policy under this Act is binding on the licensed insurer by force of this Act, and a licensed insurer can not repudiate, or decline to issue or renew, a CTP insurance policy. (2) If an application is made to a licensed insurer for an insurance certificate for use in connection with an application to register or renew the registration of a motor vehicle, and the appropriate insurance premium is tendered to the insurer by the applicant, the insurer must issue the certificate. Maximum penalty—300 penalty units. (3) A court that convicts an insurer of an offence against subsection (2) may, by order, withdraw the licence. 23 Statutory policy of insurance (1) When transport administration registers or renews the registration of a motor vehicle— (a) a policy of insurance in terms of the schedule comes into force for the motor vehicle when the registration or renewal of registration takes effect; and (b) the licensed insurer selected under this part in or in relation to the relevant application is the insurer under the policy. (2) The policy remains in force for the period of registration and for a further period of grace ending on the first of the following to happen— (a) on the renewal of the registration or the grant of a permit allowing the vehicle to be driven on roads while unregistered; (b) on the expiry of 30 days from the end of the period of registration. (3) However— (a) if the registration is cancelled before the end of the period for which it was granted or renewed, the policy Current as at [Not applicable] Page 37
Motor Accident Insurance Act 1994 Part 3 Compulsory insurance [s 23] Not authorised —indicative only ceases to be in force when the cancellation takes effect (and there is no period of grace); and (b) if a cancellation of registration takes effect during the period of grace, the period of grace ends when the cancellation takes effect; and (c) the period of grace does not include a period for which the vehicle has plates attached to it that allow it to be driven while unregistered; and (d) if the registered operator of the motor vehicle has selected a licensed insurer to become the insurer of the motor vehicle as from the end of the period of registration, the selected insurer becomes the insurer under the policy for the period of grace. (3A) If the registration of a motor vehicle is renewed after the end of the period of grace, the vehicle is uninsured from the end of the period of grace until the registration is renewed (even though the period for which the registration is renewed is backdated to the end of the previous registration period). (4) The validity of the policy is unaffected by— (a) transport administration’s failure to collect the insurance premium in full; or (b) another error of transport administration or an error of an insurer. (5) If a CTP insurance policy comes into force under this Act and the insurance premium has not been collected, in full, by or for the insurer, the insurer may recover the premium, or as much of it as has not been paid, as a debt, from the person in whose name the motor vehicle is registered. (6) If— (a) a cheque received by transport administration for the premium, or for an amount including the premium, on a CTP insurance policy is not paid on first presentation; or (b) transport administration becomes aware that, because of administrative error, the amount accepted by it as the Page 38 Current as at [Not applicable]
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 3 Compulsory insurance [s 23] premium on a CTP insurance policy is not the full amount of the premium; or (c) a payment received electronically by transport administration for the premium, or for an amount including the premium, on a CTP insurance policy is subsequently withdrawn; transport administration must, as soon as practicable, inform the insurer of the relevant fact and of any action taken by transport administration to recover the premium or the balance of the premium. (7) If provision is made by regulation for the gratuitous insurance of vehicles of a particular class under policies of CTP insurance, a vehicle of the relevant class must be regarded, subject to any conditions and limitations prescribed by regulation, as insured by a CTP insurance policy under which the Nominal Defendant is the insurer. (8) If a licensed insurer issues a CTP insurance certificate for an uninsured motor vehicle, the motor vehicle is covered by the insurer under a CTP insurance policy while the vehicle is being driven as far as is reasonably necessary— (a) to obtain an inspection certificate, or a weighbridge certificate, necessary for the vehicle’s registration; or (b) to take the vehicle to the nearest convenient place for an inspection that is necessary for registration. (9) However, CTP insurance cover under subsection (8) does not extend to an unregistered vehicle while it is being driven to a place to arrange or undergo repair or another purpose not specifically authorised by the subsection. (10) In this section— inspection certificate means an inspection certificate under the Transport Operations (Road Use Management—Vehicle Standards and Safety) Regulation 2010 . Current as at [Not applicable] Page 39
Motor Accident Insurance Act 1994 Part 3 Compulsory insurance [s 24] 24 Transfer of registration A CTP insurance policy is unaffected by a change of ownership, or a transfer of the registration of, a motor vehicle to which it relates. Not authorised —indicative only 25 Motor vehicle must be insured under correct class (1) An applicant for registration, or renewal of registration, of a motor vehicle must not make a misstatement or misrepresentation that results in— (a) the motor vehicle being incorrectly classified; and (b) a consequent reduction in the amount of the premium charged for the CTP insurance policy for the vehicle. Maximum penalty—30 penalty units. (2) However, it is a defence to a charge of an offence against subsection (1) to prove that the defendant believed on reasonable grounds that the misstatement or misrepresentation was true. (2A) A person must not drive a motor vehicle, or permit a motor vehicle to be driven, on a road or in a public place knowing that the vehicle has been incorrectly classified and that, as a result, less than the appropriate insurance premium has been paid for a policy of CTP insurance. Maximum penalty—30 penalty units. (3) An insurer must not fix the insurance premium to be paid for a CTP insurance policy on the basis of a classification of a motor vehicle the insurer knows to be incorrect. Maximum penalty—300 penalty units. 26 Non application in certain cases This division does not apply to— (a) a trailer other than a trailer that is registered, or about to be registered, under the Interstate Road Transport Act 1985 (Cwlth); or Page 40 Current as at [Not applicable]
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 3 Compulsory insurance [s 27] (b) a motor vehicle owned by a self-insurer. Division 3 Disbursement of gross insurance premiums 27 Disbursement of gross premiums by transport administration (1) Transport administration must in each week— (a) give the commission a return setting out, for the previous week— (i) the total amount received by way of insurance premiums; and (ii) the total amount received by way of insurer’s premium for each licensed insurer; and (iii) the amount received by way of statutory insurance scheme levy; and (iv) the amount received by way of hospital and emergency services levy; and (v) the amount received by way of Nominal Defendant levy; and (vi) the amount received by way of the injury insurance scheme levy; and (vii) the amount received by way of administration fee; and (b) pay to each licensed insurer the total amount received by way of insurer’s premium for the licensed insurer; and (c) pay to the commission the total amount received by way of levies, other than amounts received by way of the injury insurance scheme levy. (2) Transport administration must also in each week— Current as at [Not applicable] Page 41
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 3 Compulsory insurance [s 27A] (a) give the insurance agency a return setting out, for the previous week, the amount received by way of the injury insurance scheme levy; and (b) pay to the insurance agency the total amount received by way of the injury insurance scheme levy. (3) For subsections (1)(c) and (2)(b), the total amount received by way of levy includes any amount received from a licensed insurer for transmission to the commission or the insurance agency. (4) Transport administration may retain the amount received by way of administration fee. 27A Disbursement of gross premiums by insurers who receive premiums directly (1) Within a week after transport administration notifies a licensed insurer that it has received a certificate certifying payment of an insurance premium to the licensed insurer, the licensed insurer must— (a) pay to transport administration (for transmission to the commission or the insurance agency) the component of the insurance premium consisting of the levies; and (b) pay to transport administration the component of the insurance premium consisting of the administration fee. Maximum penalty—150 penalty units. (2) However, an insurer’s liability to make payments under subsection (1) to transport administration, and transport administration’s liability to pay insurer’s premiums to the insurer, may be set off against each other under an arrangement between transport administration and the insurer (but such an arrangement is not to affect the extent of transport administration’s liability to pay levies to the commission or the insurance agency). (3) If an insurer fails to make a payment to transport administration when required under this section, transport Page 42 Current as at [Not applicable]
Not authorised —indicative only Motor Accident Insurance Act 1994 Part 3 Compulsory insurance [s 28] administration may recover the amount as a debt, together with interest at a rate fixed under a regulation. Division 4 The statutory funds 28 Motor Accident Insurance Fund (1) There is to be a fund called the Motor Accident Insurance Fund. (2) The fund consists of— (a) an amount transferred to the fund under section 33(6) or