New South Wales Consolidated Acts

MOTOR VEHICLES (THIRD PARTY INSURANCE) ACT 1942 - SECT 21

21 Change of ownership of motor vehicle

(1) Every third-party policy in relation to a motor vehicle shall enure in favour of the owner for the time being and the driver, notwithstanding any change in the ownership of the motor vehicle, but shall cease to have effect when another third-party policy in relation to that motor vehicle comes into force except in relation to any liability, whether under the policy or under this Act, accrued or incurred before such other third-party policy came into force.

(2) The regulations may require that as soon as practicable after the owner of an insured motor vehicle sells or ceases to have possession of the motor vehicle:

(a) the owner shall give a notice in the prescribed form to the Government Insurance Office,

(b) the person who has purchased or acquired possession of the insured motor vehicle shall give a notice in the prescribed form to the Government Insurance Office.

(3) For the purposes of this section a person shall be deemed not to have ceased to have possession or, as the case may be, not to have acquired possession of an insured motor vehicle where a change of possession occurs by way of:

(a) any hiring (not being a hiring under a hire-purchase agreement) or lending of a motor vehicle for a period not exceeding three months, or

(b) the passing of the possession of a motor vehicle to a bailee for the purpose of sale or disposal or for the purpose of alteration, repair, renovation, garaging, storing or other like purpose not involving the use of the motor vehicle for the benefit of the bailee.