(a) may undertake the settlement of any
claim against any person in respect of a liability against which that person
is insured under the third-party policy,
(b) may take over during such period
as it thinks proper the conduct on behalf of such person of any proceedings
taken or had to enforce such claim or for the settlement of any question
arising with reference thereto,
(c) may defend or conduct such proceedings in
the name and on behalf of such person, and
(d) shall indemnify such person
against all costs and expenses of or incidental to any such proceedings while
the Government Insurance Office retains the defence or conduct thereof.
(2)
The person referred to in subsection (1) shall sign all such warrants and
authorities as the Government Insurance Office requires for the purpose of
enabling the Government Insurance Office to have the defence or conduct of any
proceedings referred to in that subsection and, in default of the person
signing all such warrants and authorities, the court in which such proceedings
are pending may order that the same be signed by the
Government Insurance Office on behalf of such person.
(3) Nothing said or
done by or on behalf of the Government Insurance Office in connection with the
settlement of any such claim or the defence or conduct of any such proceedings
shall be regarded as an admission of liability in respect of or shall in any
way prejudice any other claim, action or proceeding arising out of the same
occurrence.
