43ADefinition

43A Definition In this Part— ***domestic building insurance***, that covers domestic building work, means insurance that— (a) relates to the carrying out of the domestic building work; and (b) a builder is required, by an order under section 135 of the **Building Act 1993**, to be covered by within the meaning of section 135(6) of that Act; and (c) complies with section 137AA of that Act. New s. 43B inserted by No. 4/2024 s. 5. 43B Offence for builder to demand or receive money under major domestic building contract without ensuring that work is covered by domestic building insurance (1) A builder who has entered into a major domestic building contract for the carrying out of domestic building work for which the builder is required to be covered by insurance by an order under section 135 of the **Building Act 1993** must not demand or receive money from the building owner under the contract, or from a person acting on behalf of the building owner, if the builder— (a) knows that the builder has not ensured that the domestic building work is covered by domestic building insurance; or (b) is reckless as to whether the builder has ensured that the domestic building work is covered by domestic building insurance. (2) A builder who has entered into a major domestic building contract for the carrying out of domestic building work for which the builder is required to be covered by insurance by an order under section 135 of the **Building Act 1993** must not demand or receive money from the building owner under the contract, or from a person acting on behalf of the building owner, if the builder has not ensured that the domestic building work is covered by domestic building insurance. Penalty: 240 penalty units, in the case of a natural person; 1200 penalty units, in the case of a body corporate. Pt 4 (Heading and ss 44–50) amended by Nos 36/2002 ss 4–6, 34/2013 s. 35(Sch. 2 items 2.3–2.5), substituted as Pt 4 (Headings and ss 44–52I) by No. 15/2016 s. 6.