26Limitation of liability by multiple of charges

26 Limitation of liability by multiple of charges

(1)  A scheme may provide that, if a person to whom the scheme applies and against whom a proceeding relating to occupational liability is brought is able to satisfy the court –

(a) that the person has the benefit of an insurance policy –

(i) that insures the person against that occupational liability; and

(ii) [Section 26 Subsection (1) amended by No. 43 of 2006, s. 52, Applied:18 Dec 2006] under which the amount payable in respect of that occupational liability is not less than an amount (the "limitation amount"), being a reasonable charge for the services provided by the person, or which the person failed to provide, and to which the cause of action relates, multiplied by the multiple specified in the scheme in relation to the class of person and the kind of work to which the cause of action relates; or

(b) that the person has business assets the net current market value of which is not less than the limitation amount; or

(c) that –

(i) the person has business assets and the benefit of an insurance policy that insures the person against that occupational liability; and

(ii) [Section 26 Subsection (1) amended by No. 43 of 2006, s. 52, Applied:18 Dec 2006] the net current market value of the assets and the amount payable under the policy in respect of that occupational liability, if combined, would total an amount that is not less than the limitation amount –

the person is not liable in damages in relation to that cause of action above the limitation amount or, if the scheme specifies a minimum cap determined by the Council for the purposes of the scheme that is higher than the limitation amount, above the amount of the minimum cap so specified.

(2)  In determining the amount of a reasonable charge for the purposes of a provision made under subsection (1) , a court is to have regard to any amount actually charged and to –

(a) the amount that would ordinarily be charged in accordance with a scale of charges accepted by the occupational association of which the person is a member; or