South Australian Consolidated Acts South Australian Consolidated Acts (1) A policy of
insurance in relation to building work complies with this Division if—
(a) it
insures each person who is, or may become, entitled to the benefit of a
statutory warranty in respect of the building work against the risk of being
unable to enforce or recover under the statutory warranty by reason of the
insolvency, death or disappearance of the building work contractor; and
(b) in
the case of building work to be performed by the building work contractor on
behalf of some other person—it insures that person against the risk of
loss resulting from non-completion of the building work by reason of the
insolvency, death or disappearance of the contractor; and
(c) any
limitations on the liability of the insurer under the policy conform with the
regulations; and
(d) it
otherwise conforms with the requirements of the regulations.
(2) A person who is
entitled to the benefit of a statutory warranty in respect of building work in
relation to which a policy of insurance has been taken out under this Division
(or under Part 5 of the repealed Act) is entitled to sue on the policy in his
or her own right.