16Prescribed events

#### 16 Prescribed events (1) The following, except in so far as they are excluded by subsection (2), are declared to be prescribed events in relation to a contract referred to in section 15: (a) the occurrence within Australia of the destruction or, theft of, or accidental damage to, the motor vehicle specified in the contract; (b) the occurrence within Australia of accidental damage to, or the theft of: (i) a tool or appliance that is standard equipment for the motor vehicle specified in the contract; or (ii) an accessory that forms part of that motor vehicle; at a time when the tool, appliance or accessory is attached to or within the motor vehicle; (c) the insured or a person: (i) who, with the express or implied consent of the insured, was driving, using or in charge of the motor vehicle at the relevant time; or (ii) who, at the relevant time, was an authorised passenger in the motor vehicle or, if the motor vehicle is a motor cycle, who, at the relevant time, was an authorised passenger on the motor vehicle; incurring a liability (otherwise than under a contract) to pay compensation or damages in respect of loss of, or damage occurring to, property (not being the motor vehicle or a tool, appliance or accessory as mentioned in paragraph (b)) in Australia, being loss or damage that occurs as a result of the use of: (iii) the motor vehicle; or (iv) a trailer or caravan attached to the motor vehicle; (d) a person who, at the relevant time, was an employer, principal or partner of the insured, incurring a liability (otherwise than under a contract) as employer, principal or partner, respectively, to pay compensation or damages in respect of loss of, or damage occurring to, property (not being the motor vehicle or a tool, appliance or accessory as mentioned in paragraph (b)) if: (i) the loss or damage occurred in Australia; and (ii) the loss or damage occurred as the result of the use of the motor vehicle or a trailer or caravan attached to the motor vehicle. (2) The following are excluded: (a) depreciation; (b) wear and tear, rust or corrosion; (c) structural failure; (d) mechanical or electrical breakdown or failure; (e) the tyres of the motor vehicle being damaged by application of brakes or by road punctures, cuts or bursting; (f) destruction or damage, or the incurring of a liability as mentioned in paragraph (1)(c) or (d), at a time when: (i) the motor vehicle is being used in, or tested in preparation for, racing, pacemaking, a reliability trial or a speed or hill‑climbing test by the insured or by some other person with the express or implied consent of the insured; or (ii) the motor vehicle, trailer or caravan is being used in an experiment, test, trial or demonstration, in connection with the motor trade by the insured or by some other person with the express or implied consent of the insured; or (iii) the motor vehicle is being used to tow some other vehicle in connection with the motor trade by the insured or by some other person with the express or implied consent of the insured; or (iv) the motor vehicle, trailer or caravan is let on hire by the insured as lessor; or (v) the motor vehicle, trailer or caravan is being used in the course of the business of carrying passengers or goods for hire or reward by the insured or by some other person with the express or implied consent of the insured; or (vi) the motor vehicle, trailer or caravan is in the possession of a person as part of the person’s stock in trade; or (vii) the motor vehicle, trailer or caravan is being used for an unlawful purpose by the insured or is being so used by some other person with the express or implied consent of the insured; or (viii) the insured is driving the motor vehicle and is not authorised under the law in force in the State or Territory in which the motor vehicle is being driven, being a law with respect to the licensing of drivers of motor vehicles, to drive the motor vehicle; or (ix) the insured is driving the motor vehicle and is under the influence of intoxicating liquor or of a drug; (g) destruction or damage, or the incurring of a liability as mentioned in paragraph (1)(c) or (d), at a time when: (i) a person other than the insured is driving the motor vehicle with the express or implied consent of the insured; and (ii) that person is not authorised under the law in force in the State or Territory in which the motor vehicle is being driven, being a law with respect to the licensing of drivers of motor vehicles, to drive the motor vehicle; and the insured knew or should reasonably have known, at the time when the consent was given or impliedly given, that that person was not so authorised; (h) destruction or damage, or the incurring of a liability as mentioned in paragraph (1)(c) or (d), at a time when: (i) a person other than the insured is driving the motor vehicle with the express or implied consent of the insured; and (ii) that person is under the influence of intoxicating liquor or of a drug; and the insured knew or should reasonably have known, at the time when the consent was given or impliedly given, that that person was or was to be at the relevant time under that influence; (i) destruction or damage, or the incurring of a liability as mentioned in paragraph (1)(c) or (d), as a result of: (i) the expropriation of the motor vehicle, trailer or caravan; or (ii) war or warlike activities; or (iii) the use, existence or escape of nuclear weapons material, or ionising radiation from, or contamination by radioactivity from, any nuclear fuel or nuclear waste from the combustion of nuclear fuel; or (iv) the unroadworthy or unsafe condition of the motor vehicle, caravan or trailer concerned, being a condition that was known to the insured, or should reasonably have been known to the insured, at the time of the occurrence of the loss or damage or the incurring of the liability; (j) destruction or damage intentionally caused by, or a liability as mentioned in paragraph (1)(c) or (d) intentionally incurred by, the insured or a person acting with the express or implied consent of the insured; (k) destruction or damage occurring as a result of the insured failing to take steps that are, in the circumstances, reasonable for the security of the motor vehicle after accidental damage has occurred to it; (l) the incurring of a liability as mentioned in paragraph (1)(c) or (d) (whether to the insured or to some other person) in respect of damage to property that belongs to, or is in the custody of, the person so liable; (m) the incurring of a liability as mentioned in paragraph (1)(c) or (d) by a person other than the insured at a time when that person is driving the motor vehicle and: (i) is not authorised under the law in force in the State or Territory in which the motor vehicle is being driven, being a law with respect to the licensing of drivers of motor vehicles, to drive the motor vehicle; or (ii) is under the influence of intoxicating liquor or of a drug; (n) the incurring of a liability to pay compensation or damages in respect of loss or damage, if: (i) the loss or damage occurred as a result of the use of a trailer or caravan attached to the motor vehicle; and (ii) there were, at the time the loss or damage occurred, 2 or more trailers or caravans, or one or more trailers and one or more caravans, attached to the motor vehicle.