4CInsurance contracts for atypical risks

4C Insurance contracts for atypical risks

(1) For subsection 3A(1) of the Act, a contract of insurance for an atypical risk is specified. (2) For subregulation (1), a contract of insurance for an atypical risk is a contract of insurance under which any of the following is insured against: (a) loss or liability arising from the hazardous properties (including radioactive, toxic or explosive properties) of nuclear fuel, nuclear material or nuclear waste; (b) loss or liability arising from the hazardous properties of biological material or biological waste; (c) loss or liability arising from war or warlike activities (within the meaning given by subsection 4(1) of the Insurance Contracts Regulations 2017); (d) loss or liability arising from a terrorist act (within the meaning given by section 5 of the Terrorism and Cyclone Insurance Act 2003); (e) liability arising from health‑care related research; (f) loss of, or liability arising from the operation of, a space object (within the meaning given by section 8 of the Space Activities Act 1998); (g) liability arising from the ownership or operation of an aircraft (but not loss of the aircraft or its cargo); (h) liability and expenses arising from a person owning, chartering, managing, operating or being in possession of a vessel other than a pleasure craft (within the meaning given by subsection 9A(2) of the Insurance Contracts Act 1984); (i) loss or liability arising from equine mortality or fertility and related risks; (j) loss or liability incidental to a loss or liability mentioned in paragraphs (a) to (i). (3) However, a contract of insurance under which: (a) a loss or liability mentioned in subregulation (2); and (b) a loss or liability of 1 or more other kinds; are insured against is only a contract of insurance for an atypical risk to the extent that it insures against the loss or liability mentioned in subregulation (2). (4) Also, an equestrian package is not a contract of insurance for an atypical risk.

Note: An equestrian package is an insurance policy that covers risks such as personal injuries and veterinary fees associated with the ownership or use of a horse and loss of or damage to saddlery, tack and horse floats.