MOTOR ACCIDENT INSURANCE ACT 1994 - SECT 97
CTP premiums not to be discounted etc.
MOTOR ACCIDENT INSURANCE ACT 1994 - SECT 97
CTP premiums not to be discounted etc.
97 CTP premiums not to be discounted etc.
(1) A licensed insurer or a broker or other person acting for a licensed
insurer must not—
(a) discount, reduce, waive, or defer payment of the
premium on a CTP insurance policy; or
(b) offer to discount, reduce, waive,
or defer payment of the premium on a CTP insurance policy; or
(c) give or
offer to give a rebate on the premium on a CTP insurance policy.
Penalty—
Maximum penalty—300 penalty units.
(2) A licensed insurer
or a broker or other person acting for a licensed insurer must not pay or
subsidise, or offer to pay or subsidise, any fee payable on registration, or
renewal of registration, of a motor vehicle by a person who has selected, or
proposes to select, the licensed insurer to be the insurer under a CTP
insurance policy for the vehicle.
Penalty—
Maximum penalty—300
penalty units.
(3) A licensed insurer, a broker or other person (whether
acting for a licensed insurer or not) must not encourage another to make a
payment calculated to result in a reduced insurer’s premium for an insurer.
Penalty—
Maximum penalty—300 penalty units.
(4) A licensed insurer
does not contravene this section by accepting a reduced insurer’s premium in
circumstances where the reduced payment is authorised under this Act.
(5) A
licensed insurer or other person acting for a licensed insurer must not give,
or offer to give, to a person an inducement to enter into or renew an
insurance policy, including a CTP insurance policy, with the insurer if the
insurer intends to establish or treat the cost of the inducement as a cost,
expense or charge under or against the insurer’s CTP insurance policies or
the insurer’s CTP business generally.
Examples of an inducement—
1 A
licensed insurer offers a discount to policy holders who hold several policies
of insurance with the insurer. The offer is available if one of the policies
is a CTP insurance policy. The discount is applied to a policy that is not a
CTP insurance policy, but the cost of the discount is held partly against the
account for the CTP insurance policy.
2 A licensed insurer offers to give a
person a gift if the person selects the licensed insurer as the insurer under
a CTP insurance policy for the person’s motor vehicle. The insurer intends
to treat the cost of the gift as a cost of the insurer’s CTP business.
Penalty—
Maximum penalty—300 penalty units.
(6) A court that
convicts a licensed insurer of an offence against this section may, by order,
withdraw the licence.
