New South Wales Consolidated Acts

MOTOR VEHICLES (THIRD PARTY INSURANCE) ACT 1942 - SECT 12

12 Cancellation of third-party policy

(1)

(a) A third-party policy may be cancelled by the Government Insurance Office if another third-party policy is in force in relation to the same motor vehicle or in relation to motor vehicles to which the same trader’s plate is affixed, and such other policy is expressed to terminate not earlier than the date upon which the first-mentioned policy was expressed to terminate.

(b) Where the Government Insurance Office cancels a third-party policy under this subsection it shall forthwith notify the Commissioner of the fact.

(2) Where the registration of an insured motor vehicle is cancelled by the Commissioner, or a trader’s plate is delivered to the Commissioner, before the date on which the third-party policy is expressed to terminate, the Government Insurance Office shall, upon application by the owner of the motor vehicle or the trader, as the case may be, but subject to any conditions which may be prescribed by the regulations, cancel such policy.

(3) Where the Commissioner refuses the renewal of or cancels the registration of an insured motor vehicle on the ground that the vehicle or its parts or equipment is not in a thoroughly serviceable condition or does not comply with requirements prescribed by or under the Motor Traffic Act 1909 or the Recreation Vehicles Act 1983 , the Commissioner shall forthwith give to the Government Insurance Office a notice in writing of such cancellation or refusal.

(4)

(a) In any case not provided for in subsection (1) or subsection (2), a third-party policy may be cancelled by the Government Insurance Office after a notice specifying a date, not being earlier than 30 days after service of the notice, upon which the Government Insurance Office proposes to cancel such policy has been served on the Commissioner and (except where the owner of the motor vehicle or the trader has applied to the Government Insurance Office for cancellation of the policy) on the owner of the motor vehicle or the trader, as the case may be.

(b) Where an appeal is lodged on or before the date specified in the notice, the third-party policy shall not be cancelled unless and until the proposed cancellation is confirmed by the court or the appeal is for any reason dismissed.

(c) Where the Government Insurance Office cancels a third-party policy under this subsection it shall forthwith notify the Commissioner of the fact.

(5) Whilst the registration of a motor vehicle is current or a trader’s plate is in issue the Government Insurance Office shall not (whether upon application by the owner of the motor vehicle or the trader, or otherwise) cancel the third-party policy except:

(a) under the circumstances and subject to the conditions prescribed by or under this section, or

(b) under such other circumstances and subject to such conditions as may be prescribed by the regulations.

(6) The cancellation of any third-party policy shall not exempt the Government Insurance Office from any liability, whether under the policy or under this Act, accrued or incurred before such cancellation.