MOTOR VEHICLES ACT 1959 - SECT 118A
MOTOR VEHICLES ACT 1959 - SECT 118A
118A—Appointment of nominal defendant when approved insurer is wound up
etc
(1) Where the Minister
is satisfied that an approved insurer, being a corporation incorporated in the
State or elsewhere, has insufficient assets to meet all its liabilities
and—
(a) is
being wound up; or
(b) has
entered into a compromise or arrangement with its creditors,
the Governor may, on the recommendation of the Minister, by proclamation
declare that this section applies to that insurer and thereupon this section
will apply to that insurer in accordance with the declaration.
(3) Where this section
applies to an insurer, any person having any claim or entitled to bring any
action or enforce any judgment against that insurer—
(a)
under the terms and conditions of a policy of insurance under this Part; or
(b)
pursuant to any provision of this Part,
may make or bring that claim or action or enforce that judgment against the
nominal defendant.
(4)
The nominal defendant has the same duties and liabilities and has and may
exercise the same powers and rights in or in relation to any such claim,
action or judgment as the insurer would have if it were not being wound up, or
had not entered into a compromise or arrangement with its creditors.
(5) Notwithstanding
any other Act, where the nominal defendant pays or is liable to pay any sum
pursuant to subsection (3) and the amount so paid or liable to be paid or
any part of it would, if paid by the insurer, have been recoverable by the
insurer from another person under any provision of this Part or a contract or
arrangement for reinsurance, the nominal defendant has and may exercise the
rights and powers of the insurer under that contract or arrangement so as to
enable the nominal defendant to recover that amount from that other person.
(6) The insurer or any
officer or agent of the insurer or, where the insurer is being wound up, the
liquidator of the insurer must, upon the request of the nominal defendant
forthwith—
(a)
furnish the nominal defendant with such particulars as the nominal defendant
requires relating to claims, actions and judgments referred to in
subsection (3) of which the insurer or liquidator has received notice;
and
(b) make
available to the nominal defendant all books and papers of the insurer
relating to those claims, actions and judgments; and
(c) give
the nominal defendant such assistance as the nominal defendant reasonably
requires in relation to any such claim, action or judgment.
(7) All money paid out
or costs incurred by the nominal defendant under this section in respect of
any claim, action or judgment will be paid—
(a) out
of money contributed by approved insurers pursuant to a scheme under
section 119; or
(b) if
no such scheme is in operation, by the Treasurer and approved insurers in
accordance with section 120.
(8) The amount of all
money paid out or costs incurred by the nominal defendant under this section
may, in the winding up of the insurer or in any compromise or arrangement
between the insurer and any of its creditors, be proved as a debt due to
the nominal defendant by the insurer, and the nominal defendant must pay any
amounts received as dividends out of the assets of the insurer, and any
amounts recoverable by the insurer under this Part that have been recovered by
the nominal defendant, to such approved insurers in such amounts or
proportions as the Minister directs.