26Liability that cannot be limited by a scheme

26 Liability that cannot be limited by a scheme

26 Liability that cannot be limited by a scheme

(1) A scheme can only affect the liability for damages arising from a single cause of action to the extent to which the liability results in damages exceeding such amount (but not less than $500,000) as is determined for the purposes of the scheme by the Council and specified in the scheme.

(2) In making a determination, the Council must have regard to:

(a) the number and amounts of claims made against persons within the occupational association concerned, and

(b) the need to adequately protect consumers.

(3) A Council determination:

(a) takes effect when an amendment providing for its specification in the scheme takes effect, and

(b) applies only to a cause of action that arises after the determination takes effect.

s 26: Am 1998 No 10, Sch 1 [5] [6].