129LExtension of policies

129L Extension of policies

(1) When a contributing insurer has entered into a contract or arrangement for a policy of insurance or for re-insurance in respect of or in relation to its liability to indemnify an employer under the terms of a policy of insurance for compensation payable by the employer under the Workers Compensation Act 1958 and the contributing insurer pays an amount by reason of an assessment made under this Division, the payment, for the purposes of the policy and the contract or arrangement for a policy of insurance or for re-insurance, shall be deemed—

(a) to be a payment by the insurer in satisfaction of or by reason of its liability to indemnify the employer under the terms of the policy; and

(b) to have been a payment in respect of compensation payable by the employer under the Workers Compensation Act 1958 as if the contribution injury resulting in the assessment was an injury or disease for which compensation was payable and paid under that Act.

(2) If a contributing insurer is not entitled to recover any sum under any contract or arrangement for a policy of insurance or for re-insurance in respect of a payment of an amount by reason of an assessment, that matter shall not be regarded as a relevant matter by the Tribunal upon a review under this Division.

S. 129M inserted by No. 13/1988