10Third-party policy

#### 10 Third-party policy 10 Third-party policy > > (1) In order to comply with the requirements of this Act a policy of insurance: > > > > > (a) must be issued by the Government Insurance Office, and > > > > > (b) > > > > > > > (i) where such policy is issued in relation to a particular motor vehicle must insure the owner of the motor vehicle mentioned in the policy and any other person who at any time drives the motor vehicle, whether with or without the authority of the owner, jointly and each of them severally, against all liability incurred by that owner and that person jointly or by either of them severally, in respect of the death of or bodily injury to any person caused by or arising out of the use of the motor vehicle in New South Wales and in such other parts (if any) of the Commonwealth of Australia as may be prescribed, or > > > > > > > (ii) where such policy is issued in relation to motor vehicles to which a trader’s plate is affixed must insure the trader to whom the trader’s plate mentioned in the policy is in issue and any other person who at any time drives a motor vehicle to which such trader’s plate is affixed (whether the vehicle is so driven or the trader’s plate is so affixed with or without the authority of the trader) jointly and each of them severally, against all liability incurred by that trader and that person jointly or by either of them severally, in respect of the death of or bodily injury to any person caused by or arising out of the use of the motor vehicle to which the trader’s plate is so affixed, in New South Wales and in such other parts (if any) of the Commonwealth of Australia as may be prescribed, and > > > > > (c) must be in the prescribed form. > > > (2) A third-party policy shall not extend to insure the owner or driver of the motor vehicle against: > > > > > (a) a liability to pay compensation under the [Workers’ Compensation Act 1926](/view/pdf/asmade/act-1926-15) to a worker employed by the owner or driver, as the case may be, > > > > > (b) a liability which may be incurred by the owner or driver, as the case may be, under an agreement unless the liability is one which would have arisen in the absence of such agreement. > > > (3) A policy of insurance which complies with the matters referred to in subsection (1) (a) and (b) shall not be prevented from being a third-party policy merely by reason of the fact that it contains any term, condition or warranty not contained in the prescribed form, but any such term, condition or warranty shall be void and of no effect. > > > (4) Where the death of or bodily injury to any person is caused by or arises out of the use of an insured motor vehicle whilst a trader’s plate is affixed to such motor vehicle, the third-party policy in relation to motor vehicles to which such trader’s plate is affixed shall (to the exclusion of the third-party policy in relation to the particular motor vehicle) be the policy under which, in respect of such death or bodily injury, any person whom such policy purports to insure is insured. > > > (5) A third-party policy issued by the Government Insurance Office in relation to a motor vehicle or in relation to motor vehicles to which a trader’s plate is affixed shall commence on the date on which it is expressed to commence and, unless it is sooner cancelled pursuant to this Act, shall continue in force: > > > > > (a) in a case where the Government Insurance Office notifies the Commissioner, at least 30 days before the date on which the policy is expressed to terminate, that it will not renew the policy—until such date, > > > > > (b) in a case, not provided for in paragraph (a), where another third-party policy issued by the Government Insurance Office in relation to that motor vehicle or in relation to motor vehicles to which that trader’s plate is affixed commences during the period of 15 days next following the date on which such first-mentioned policy is expressed to terminate—until such commencement, > > > > > (c) in any other case—until 15 days after the date on which it is expressed to terminate or the last day of the month in which that date occurs, whichever is the later. > > > (6) Where the Government Insurance Office issues a renewal of a third-party policy in relation to a motor vehicle for a period expressed to terminate upon the date of expiration of a renewal of the registration of the motor vehicle: > > > > > (a) the insurance premium shall be payable as if such renewal of the policy were expressed to commence from the date of commencement of the renewal of registration whether or not the renewal of the policy is so expressed, > > > > > (b) the Government Insurance Office shall not be liable under the renewal of the policy in respect of the death of or bodily injury to any person caused by or arising out of the use of the motor vehicle during the period (if any) between the date from which the renewal of the policy is expressed to commence and the date of payment of the amount of insurance premium in respect of the renewal of the policy. > > > (6A) While the Government Insurance Office is exempted under subsection (6) (b) from liability in respect of the death of or bodily injury to any person caused by or arising out of the use of a motor vehicle, and no third-party policy is in force in relation to the motor vehicle whether by reason of the operation of subsection (5) or otherwise, such motor vehicle shall, for the purposes of this Act, be deemed to be an uninsured motor vehicle. > > > (7) Notwithstanding anything in any enactment other than this Act or any rule of law the Government Insurance Office in issuing a third-party policy shall, in respect of any liability in respect of the death of or bodily injury to any person which the third-party policy purports to cover in the case of the owner of the insured motor vehicle or any other person, be liable to indemnify such owner or person. > > > (8) Every third-party policy shall to the extent of the insurance effected by that policy: > > > > > (a) extend and as from the commencement of the [Law Reform (Miscellaneous Provisions) Act 1944](/view/html/inforce/current/act-1944-028) be deemed to have extended, in any case where the insured person is dead, to indemnify the insured person’s estate against: > > > > > > > (i) liability arising under any cause of action which, by virtue of section 2 of that Act survives against the insured person’s estate, > > > > > > > (ii) liability arising by operation of section 2 (4) of that Act, > > > > > (b) extend and as from the commencement of the [Law Reform (Miscellaneous Provisions) Act 1946](/view/html/inforce/current/act-1946-033), be deemed to have extended to indemnify the insured person or in any case where the insured person is dead, to indemnify the insured person’s estate against: > > > > > > > (i) liability arising where the insured person or, as the case may be, the insured person’s estate has in any proceedings been joined as an alternative defendant, > > > > > > > (ii) liability arising where the insured person or, as the case may be, the insured person’s estate has served or has been served with a notice in writing under section 3 (1) of that Act, > > > > > > > (iii) liability arising where the insured person or, as the case may be, the insured person’s estate claims contribution from some other person as a joint tort-feasor or has a claim made against the insured person or the insured person’s estate, as the case may be, as a joint tort-feasor. > > > (9) In subsection (8), insured person means a person who is insured against liability in respect of the death of or bodily injury to any other person caused by or arising out of the use of a motor vehicle under: > > > > > (a) a third-party policy, or > > > > > (b) a policy of insurance complying with the provisions of any statute which is in force in any prescribed part of the Commonwealth of Australia (other than this State) and which requires the owner or driver of a motor vehicle to be insured against liability in respect of the death of or bodily injury to any person caused by or arising out of the use of the motor vehicle. > > **s 10:** Am 1962 No 42, sec 2 (a); 1984 No 86, Schs 1 (6), 5 (6); 1986 No 218, Sch 27 (2).