78‑65 Payments etc. to third parties by 78‑65 Payments etc. to third parties by insurers

78‑65 Payments etc. to third parties by insurers

(1) The making of any payment by an insurer to an entity is not treated as *consideration for a supply to the insurer by the entity, to the extent that: (a) the payment is made in settlement of a claim under an *insurance policy under which the entity is not insured; and (b) the payment is to discharge a liability owed to that entity by the entity insured. (2) The making of any supply by an insurer to an entity: (a) is not to be treated as a *taxable supply by the insurer; and (b) is not to be treated as *consideration for a supply to the insurer by the entity, or any other entity; to the extent that: (c) the supply is made in settlement of a claim under an *insurance policy under which the entity is not insured; and (d) the supply is to discharge a liability owed to that entity by the entity insured. (3) This section has effect despite section 9‑5 (which is about what are taxable supplies) and section 9‑15 (which is about consideration).