13Commencement and duration of third-party policy

#### 13 Commencement and duration of third-party policy 13 Commencement and duration of third-party policy (cf s 12 MAA) > > (1) A third-party policy taken to have been issued for a motor vehicle has effect for the period for which the licensed insurer who is taken to have issued the policy is on risk in accordance with this section. > > > (2) In this section— > > > > new insurer means the licensed insurer whose insurance is later in time. > > > > old insurer means the licensed insurer whose insurance is earlier in time. > > > > period of grace means the period of 14 days after the registration, or renewal of registration, of a motor vehicle expires. > > > > period of registration means the period, not exceeding one year, for which the registration or renewal of registration of a motor vehicle is effected, but if, within that period, the registration or renewal of registration is cancelled or surrendered, it means the period for which the registration or renewal of registration is actually in force. > > > (3) The old insurer and the new insurer may be the same licensed insurer or different licensed insurers. > > > (4) In the case of the registration (but not the renewal of registration) of a motor vehicle, the licensed insurer is on risk for the period of registration of the motor vehicle. > > > (5) If registration is renewed before the previous period of registration expires, the old insurer is on risk until the previous period of registration expires and the new insurer comes on risk immediately after the previous period of registration expires. > > > (6) If registration is renewed during the period of grace, the old insurer is on risk until 12 midnight on the day registration is renewed and the new insurer comes on risk immediately after 12 midnight and is on risk for the balance of the period of registration of the motor vehicle effected by the renewal of registration. > > > (7) If registration is renewed after the period of grace expires, the new insurer comes on risk at the time the renewal of registration is effected. The motor vehicle is not an insured motor vehicle from the expiry of the previous period of registration until the time the renewal of registration is effected. > > > (8) There is no period of grace following the cancellation or surrender of the registration (whether registration or a renewal of registration) of a motor vehicle. > > > (9) A licensed insurer ceases to be on risk on the cancellation of a third-party policy under section 14, subject to section 14 (7). > > > (10) A licensed insurer is on risk in respect of a motor vehicle under a third-party policy relating to a motor vehicle to which a trader’s plate is fixed— > > > > > (a) only during the period for which the policy is issued, and > > > > > (b) only during the period for which the trader’s plate is issued, and > > > > > (c) only while a trader’s plate is fixed to the vehicle. > > > (11) A licensed insurer is on risk in respect of a light rail vehicle under a third-party policy relating to the vehicle only during the period for which the policy is issued.