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s 40

Payment of defined benefits by interstate relevant insurer

In force
Chapter 2Motor accident injuries—defined benefits
Part 2.2Defined benefits—entitlement
Division 2.2.1Entitlement to defined benefits

40 Payment of defined benefits by interstate relevant insurer

(1)

This section applies if the relevant insurer for a motor accident is an interstate insurer (the interstate relevant insurer).

Note Interstate insurer—see the dictionary.

(2)

The interstate relevant insurer must—

(a)

pay the defined benefits payable as a result of the motor accident; or

(b)

enter into an arrangement with a licensed insurer that is an associated entity of the interstate relevant insurer for the licensed insurer to be the relevant insurer for the motor accident; or

(c)

enter into an arrangement with the nominal defendant for the nominal defendant to manage the payment of the defined benefits on behalf of the interstate relevant insurer.

(3)

However, if the insurance policy of an interstate relevant insurer does not provide benefits, on a no-fault basis, to an at-fault driver who sustains a personal injury in the motor accident—

(a)

the nominal defendant is the relevant insurer for the motor accident for an application for defined benefits made by the at‑fault driver; and

(b)

the interstate relevant insurer must give the nominal defendant any information it has in relation to the at-fault driver’s application for defined benefits.

(4)

If the interstate relevant insurer enters into an arrangement with the nominal defendant under subsection (2) (c), the nominal defendant—

(a)

has complete authority to make decisions for the management of the payment of the defined benefits; and

(b)

may request an advance from the nominal defendant fund to fund the payment of the defined benefits; and

(c)

may charge the interstate relevant insurer a fee for managing the payment of the defined benefits.

(5)

The nominal defendant may recover as a debt from the interstate relevant insurer any costs reasonably incurred by the nominal defendant in relation to the management of the payment of the defined benefits.

(6)

The nominal defendant may bring a proceeding for recovery of costs under this section before the costs have been actually paid in full and, in that case, a judgment for recovery of costs may provide that, as far as the costs have not been actually paid, the right to recover the costs is contingent on payment.

(7)

This section does not affect a right of recovery that the nominal defendant may have, apart from this section, against the responsible person for, or the driver of, the motor vehicle at fault in the motor accident.

Note An amount recovered under this section by the nominal defendant must be paid into the nominal defendant fund (see s 330).

(8)

In this section:

associated entity, of an interstate relevant insurer—see the Corporations Act, section 50AAA.

Division 2.2.2 Limitations and exceptions to entitlement

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