Div 3Building indemnity insurance

Division 3—Building indemnity insurance 33—Application of Division (1) This Division applies to domestic building work commenced on or after 1 May 19871 performed, or to be performed, by a building work contractor under a domestic building work contract or on the contractor's own behalf. (2) This Division does not apply to— (a) domestic building work for which approval under the Development Act 1993 or the repealed Building Act 1971 is or was not required; or (b) minor domestic building work. 1 1 May 1987 was the date of commencement of the corresponding Division of the repealed Builders Licensing Act 1986. 34—Requirements of insurance A building work contractor must not perform building work to which this Division applies unless— (a) a policy of insurance that complies with this Division is in force in relation to that building work; and (b) in the case of building work to be performed by the contractor under a domestic building work contract—the building owner has been provided with a certificate that evidences the taking out of that policy of insurance and complies with the requirements of the regulations. Expiation fee: $20 000. 35—Nature of the policy (1) A policy of insurance in relation to building work complies with this Division if— (a) it insures each person who is, or may become, entitled to the benefit of a statutory warranty in respect of the building work against the risk of being unable to enforce or recover under the statutory warranty by reason of the insolvency, death or disappearance of the building work contractor; and (b) in the case of building work to be performed by the building work contractor on behalf of some other person—it insures that person against the risk of loss resulting from non-completion of the building work by reason of the insolvency, death or disappearance of the contractor; and (c) any limitations on the liability of the insurer under the policy conform with the regulations; and (d) it otherwise conforms with the requirements of the regulations. (2) A person who is entitled to the benefit of a statutory warranty in respect of building work in relation to which a policy of insurance has been taken out under this Division (or under Part 5 of the repealed Act) is entitled to sue on the policy in his or her own right.