MOTOR ACCIDENT INSURANCE ACT 1994 - SECT 106
Nominal Defendant
MOTOR ACCIDENT INSURANCE ACT 1994 - SECT 106
Nominal Defendant
106 Nominal Defendant
(1) The Nominal Defendant under this Act succeeds to rights and liabilities of
the Nominal Defendant under the former Act for personal injury arising out of
motor vehicle accidents that happened before the commencement of this Act.
(2) If the insurer liable under a contract of insurance issued under the
former Act becomes insolvent—
(a) the Nominal Defendant succeeds to the
insolvent insurer’s rights and liabilities under the contract of insurance;
and
(b) the provisions of this Act that apply to the insolvency of an insurer
under a CTP insurance policy apply with any changes prescribed by regulation.
(3) The Motor Vehicle Insurance Nominal Defendant Fund established under the
former Act is closed and the balance standing to its credit at the
commencement of this Act must be dealt with as follows—
(a) an amount that
is, in the State Actuary’s opinion, enough to meet liabilities of the
Nominal Defendant under this section must be transferred to the Nominal
Defendant Fund under this Act;
(b) any balance must be transferred to the
Motor Accident Insurance Fund under this Act.
(4) If the amount paid to the
credit of the Nominal Defendant Fund proves insufficient to meet the
liabilities of the Nominal Defendant under this section, the commissioner must
make payments from the Motor Accident Insurance Fund to meet the deficiency,
but the total payments from the Motor Accident Insurance Fund under this
section can not be more than the amount transferred to the fund under
subsection (3).
(5) Section 33(5) further limits the total payments that may
be made under subsection (4) from the Motor Accident Insurance Fund.
