305Insurer on risk—period of grace

305 Insurer on risk—period of grace (1) If the registration of a motor vehicle is renewed during the period of grace— (a) the old insurer is on risk until midnight on the day the registration is renewed; and (b) the new insurer comes on risk immediately after midnight on the day the registration is renewed and is on risk for the period of renewed registration. (2) If the registration is renewed after the period of grace ends— (a) the new insurer comes on risk at the time the renewal of registration is effected; and (b) the motor vehicle is not an insured motor vehicle from the end of the previous period of registration until the renewal of registration takes effect. (3) An MAI insurer ceases to be on risk if the MAI policy is cancelled. Note Cancellation of MAI policies for a registered motor vehicle is dealt with in s 311. period of grace means the 14 days after the registration, or renewal of registration, of a motor vehicle ends. Note There is no period of grace following the cancellation or surrender of registration or a renewal of registration of a motor vehicle.