Commonwealth Consolidated Regulations

INSURANCE CONTRACTS REGULATIONS 1985 - REG 8

(1)

Subject to these Regulations, for the purposes of section 34 of the Act, the minimum amount in respect of a claim made under a contract referred to in regulation 5, being a claim arising out of an event referred to in paragraph 6 (a) or (b), is declared to be the amount sufficient to indemnify the person who made the claim.

(2)

Subject to these Regulations, for the purposes of section 34 of the Act, the minimum amount in respect of a claim made under a contract referred to in regulation 5, being a claim that arises out of an event referred to in paragraph 6 (c) or (d), is declared to be the amount, not exceeding $5,000,000, sufficient to indemnify the person who made the claim in respect of his or her liability.

(3)

Where there is more than one such claim arising out of the same event, being an event referred to in paragraph 6 (c) or (d), then, for the purposes of section 34 of the Act, the minimum amount in respect of a claim made after the first of those claims has been made is declared to be the amount sufficient to indemnify the person who made the claim or the amount ascertained by subtracting from $5,000,000 the amount or the sum of the amounts, as the case may be, that the insurer has paid, or is liable to pay, in respect of the claim or claims arising out of that event that have already been made, whichever is the lesser.