70Dispute about liability for application

70 Dispute about liability for application (a) the relevant insurer for a motor accident (the first insurer) intends to reject liability for the application because another insurer (the second insurer) appears to be the relevant insurer for the motor accident; and (b) the second insurer disputes its liability for the application. (2) The first insurer— (a) must not give the applicant a transfer notice; and (b) must give the MAI commission written notice of the dispute. (3) If the first insurer gives the MAI commission a notice under subsection (2) (b)— (a) section 65 (Relevant insurer must decide liability for defined benefits) does not apply in relation to the application until the dispute is resolved; and

Miscellaneous—pt 2.3 Division 2.3.6 (b) the first insurer must notify the applicant— (i) about the dispute; and (ii) that the first insurer continues to be liable for the applicant’s allowable expenses; and (iii) that the first insurer is liable for the applicant’s treatment and care benefits, income replacement benefits and funeral benefits in accordance with this chapter until the dispute is resolved. (4) The dispute must be dealt with in accordance with the insurance industry deed. (5) If the second insurer is found to be liable for the application, the first insurer may recover the following amounts as a debt from the second insurer: (a) any amounts of the applicant’s allowable expenses already paid; (b) any defined benefits already paid; (c) the cost of managing and disputing the application. (6) If the second insurer is found to be liable for the application, the second insurer must not dispute a decision the first insurer made in relation to any amounts paid to the applicant by the first insurer.