MOTOR ACCIDENT INSURANCE ACT 1994 - SECT 12 Insurance premiums

MOTOR ACCIDENT INSURANCE ACT 1994 - SECT 12

12 Insurance premiums

(1) An insurance premium under the statutory insurance scheme consists of the following components—

(a) the insurer’s premium;

(b) the statutory insurance scheme levy;

(c) the hospital and emergency services levy;

(d) the Nominal Defendant levy;

(e) the injury insurance scheme levy;

(f) the administration fee.

(2) The insurer’s premium is the insurer’s consideration for providing the insurance.

(3) The statutory insurance scheme levy is to cover the estimated costs of—

(a) the administration of this Act (other than costs associated with the Nominal Defendant scheme) for the financial year in which the levy is fixed, together with any shortfall from previous financial years; and

(b) the commission performing its functions under the National Injury Act , chapter 5 for the financial year in which the levy is fixed.

(4) The hospital and emergency services levy is to cover a reasonable proportion of the estimated cost of providing public hospital services and emergency services for the financial year for which the levy is fixed having regard to the number of people who—

(a) are injured in motor vehicle accidents; and

(b) make use of public hospital services and emergency services as a result of their injuries; and

(c) are claimants or potential claimants under the statutory insurance scheme, but are not—

(i) participants in the injury insurance scheme; or

(ii) eligible persons.

(5) The Nominal Defendant levy is to cover the estimated costs of the Nominal Defendant scheme for the financial year or other period for which the levy is fixed together with any shortfall from previous financial years.

(6) The administration fee is the fee payable to transport administration for work done in the administration of the statutory insurance scheme.

(7) The administration fee is a controlled receipt for the purposes of the Financial Accountability Act 2009 .