30Liabilities of employer transferred to licensed insurer

30 Liabilities of employer transferred to licensed insurer

(1)  [Section 30 Subsection (1) amended by No. 99 of 2000, s. 18, Applied:01 Jul 2001] Where an employer has entered into a contract with a licensed insurer in respect of a liability to a worker in respect of which he is required under section 97 (1) to maintain a policy of insurance, then–

(a) if the employer has applied to take, or takes, advantage of any law relating to bankruptcy, or has compounded, or entered into an arrangement, with his creditors; or

(b) if, where the employer is a body corporate–

(i) the body corporate has commenced to be wound up;

(ii) a receiver or manager of the body corporate's business or undertaking has been duly appointed; or

(iii) possession has been taken by or on behalf of any secured creditors of the body corporate of any property comprised in or subject to their security–

the liabilities of the employer to the worker are transferred to and imposed upon the licensed insurer, notwithstanding any law relating to bankruptcy or the winding-up of bodies corporate.

(2)  [Section 30 Subsection (2) substituted by No. 99 of 2000, s. 18, Applied:01 Jul 2001] On the transfer of an employer's liabilities to the licensed insurer under subsection (1) , the licensed insurer –

(a) retains the same rights, remedies and defences as it would otherwise have had against the employer; and

(b) has the same rights and remedies against the worker as if it were the employer; and

(c) is subject to the same liabilities to the worker as if it were the employer.

(3)  Where under this section the liability of a licensed insurer to a worker is less than the liability of the employer to the worker, the worker –

(a) may prove for the balance in the bankruptcy or liquidation; or