Termination of insurance contract over mortgaged property if credit contract terminated
149 Termination of insurance contract over mortgaged property if credit contract terminated
If a credit contract is terminated before the end of the term of a credit‑related insurance contract over mortgaged property financed under the credit contract or before any such insurance contract is otherwise terminated, the debtor is entitled to terminate the insurance contract and recover from the insurer a proportionate rebate of premium paid under the insurance contract.
On the termination of the credit contract, the credit provider must inform the debtor in accordance with the regulations of the debtor’s rights under this section.
Criminal penalty: 50 penalty units.
Subsection (2) is an offence of strict liability.
For strict liability, see section 6.1 of the Criminal Code.
The regulations may prescribe the manner of calculating the proportionate rebate of premium for the purposes of this section.
An entitlement under this section to terminate an insurance contract may be exercised only by notice in writing to the insurer.
This section has effect despite any provision of the credit‑related insurance contract.
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