MOTOR ACCIDENT INSURANCE ACT 1994 - SECT 30 Transfer of CTP business

MOTOR ACCIDENT INSURANCE ACT 1994 - SECT 30

30 Transfer of CTP business

(1) The commission may, on the joint application of 2 licensed insurers, approve the transfer of CTP business from one insurer (the
"transferor" ) to the other (the
"transferee" ).

(2) An approval under this section may be given on the conditions the commission considers appropriate.

(3) Notice of an approval under this section must be published in the gazette.

(4) On publication of the notice of approval in the gazette—

(a) all rights and liabilities subject to the transfer are transferred to, and become rights and liabilities of, the transferee; and

(b) this Act operates as if the transferee had been selected as the insurer under the CTP policies subject to the transfer; and

(c) if the transferor’s entire CTP business is transferred—the transferor’s licence is withdrawn; and

(d) if part of the transferor’s CTP business is transferred—the transfer is an adequate reason for withdrawing the licence.

Editor’s note—

It should be noted that, under section 66 (1) , the commission may withdraw a licence if the insurer asks the commission to withdraw it, the insurer contravenes this Act, a condition of the licence or the industry deed, or there is some other reason justifying withdrawal of the licence.