14Cancellation of third-party policies

#### 14 Cancellation of third-party policies 14 Cancellation of third-party policies (cf s 13 MAA) > > (1) A licensed insurer has no power to cancel a third-party policy. > > > (2) A third-party policy may only be cancelled in accordance with this section. > > > (3) A third-party policy is cancelled on the cancellation of the registration of the motor vehicle to which it relates, except where the registration is cancelled under Division 3 of Part 4 of the [Fines Act 1996](/view/html/inforce/current/act-1996-099). > > > (4) If the whole or any part of the premium payable in respect of a third-party policy is paid by cheque or credit card, and the cheque is not met on due presentation or the credit card transaction is not duly honoured or is fraudulent, the licensed insurer may request TfNSW to suspend the registration of the motor vehicle to which the policy relates for a period of 14 days. > > > (4A) If the insured person under a third-party policy deliberately avoided paying the correct premium for the third-party policy by making a statement in connection with the issue of the policy that the insured person knew was false, the licensed insurer may request TfNSW to suspend the registration of the motor vehicle to which the policy relates for a period of 14 days. > > > (4B) A licensed insurer is not to request TfNSW to suspend the registration of a motor vehicle except with the prior approval in writing of the Authority and is not to make such a request unless the amount outstanding remains unpaid. > > > (5) Before requesting TfNSW to suspend the registration of a motor vehicle, the licensed insurer must notify the owner of the motor vehicle that the insurer intends to request TfNSW to suspend the registration and that the registration and third-party policy may be cancelled at the expiration of the suspension period if the amount outstanding has not been paid before the expiration of the period. > > > (6) TfNSW must comply with a request by a licensed insurer under this section to suspend the registration of a motor vehicle. > > > (6A) If the amount outstanding remains unpaid, the licensed insurer may request TfNSW before the end of the suspension period to cancel the registration of the motor vehicle at the expiration of the suspension period. A licensed insurer is not to request TfNSW to cancel the registration of a motor vehicle except with the prior approval in writing of the Authority. > > > (6B) TfNSW must comply with a request by a licensed insurer under this section to cancel the registration of a motor vehicle. > > > (6C) The Authority may establish guidelines that provide for the circumstances in which the Authority will or will not give its approval to the making of a request for the suspension or cancellation of the registration of a motor vehicle. > > > (7) If the registration of a motor vehicle is cancelled, otherwise than under Division 3 of Part 4 of the [Fines Act 1996](/view/html/inforce/current/act-1996-099) or subsection (6), but restored before the date for renewal of the registration, the third-party policy cancelled is taken to have remained in force during the period of cancellation. > > > (8) Despite anything in the [Fines Act 1996](/view/html/inforce/current/act-1996-099), the regulations may make provision for or with respect to— > > > > > (a) the cancellation of a third-party policy in respect of a motor vehicle whose registration is cancelled under Division 3 of Part 4 of that Act, where— > > > > > > > (i) the whole or any part of the premium payable in respect of the third-party policy is paid by cheque or credit card, and > > > > > > > (ii) the cheque is not met on due presentation or the credit card transaction is not duly honoured or is fraudulent, and > > > > > (b) the restoration (whether prospectively or during any past period of cancellation) of any third-party policy so cancelled. > > **s 14:** Am 2006 No 17, Sch 1 \[8\]–\[11\]; 2011 No 41, Sch 5.25 \[2\]; 2020 No 30, Sch 4.49\[2\].