Queensland Consolidated Acts

MOTOR ACCIDENT INSURANCE ACT 1994 - SECT 23

23 Statutory policy of insurance

(1) When transport administration registers or renews the registration of a motor vehicle—

(a) a policy of insurance in terms of the schedule comes into force for the motor vehicle when the registration or renewal of registration takes effect; and

(b) the licensed insurer selected under this part in or in relation to the relevant application is the insurer under the policy.

(2) The policy remains in force for the period of registration and for a further period of grace ending on the first of the following to happen—

(a) on the renewal of the registration or the grant of a permit allowing the vehicle to be driven on roads while unregistered;

(b) on the expiry of 30 days from the end of the period of registration.

(3) However—

(a) if the registration is cancelled before the end of the period for which it was granted or renewed, the policy ceases to be in force when the cancellation takes effect (and there is no period of grace); and

(b) if a cancellation of registration takes effect during the period of grace, the period of grace ends when the cancellation takes effect; and

(c) the period of grace does not include a period for which the vehicle has plates attached to it that allow it to be driven while unregistered; and

(d) if the registered operator of the motor vehicle has selected a licensed insurer to become the insurer of the motor vehicle as from the end of the period of registration, the selected insurer becomes the insurer under the policy for the period of grace.

(3A) If the registration of a motor vehicle is renewed after the end of the period of grace, the vehicle is uninsured from the end of the period of grace until the registration is renewed (even though the period for which the registration is renewed is backdated to the end of the previous registration period).

(4) The validity of the policy is unaffected by—

(a) transport administration’s failure to collect the insurance premium in full; or

(b) another error of transport administration or an error of an insurer.

(5) If a CTP insurance policy comes into force under this Act and the insurance premium has not been collected, in full, by or for the insurer, the insurer may recover the premium, or as much of it as has not been paid, as a debt, from the person in whose name the motor vehicle is registered.

(6) If—

(a) a cheque received by transport administration for the premium, or for an amount including the premium, on a CTP insurance policy is not paid on first presentation; or

(b) transport administration becomes aware that, because of administrative error, the amount accepted by it as the premium on a CTP insurance policy is not the full amount of the premium; or

(c) a payment received electronically by transport administration for the premium, or for an amount including the premium, on a CTP insurance policy is subsequently withdrawn;

transport administration must, as soon as practicable, inform the insurer of the relevant fact and of any action taken by transport administration to recover the premium or the balance of the premium.

(7) If provision is made by regulation for the gratuitous insurance of vehicles of a particular class under policies of CTP insurance, a vehicle of the relevant class must be regarded, subject to any conditions and limitations prescribed by regulation, as insured by a CTP insurance policy under which the Nominal Defendant is the insurer.

(8) If a licensed insurer issues a CTP insurance certificate for an uninsured motor vehicle, the motor vehicle is covered by the insurer under a CTP insurance policy while the vehicle is being driven as far as is reasonably necessary—

(a) to obtain an inspection certificate, or a weighbridge certificate, necessary for the vehicle’s registration; or

(b) to take the vehicle to the nearest convenient place for an inspection that is necessary for registration.

(9) However, CTP insurance cover under subsection (8) does not extend to an unregistered vehicle while it is being driven to a place to arrange or undergo repair or another purpose not specifically authorised by the subsection.

(10) In this section—

"inspection certificate" means an inspection certificate under a regulation made under the Transport Operations (Road Use Management) Act 1995 , section 148 .