[12] Section 23A
12 [12] Section 23A
Insert after section 23:
23A Limit on insurer liability for single incident
If the liability of a licensed insurer under a third-party policy in respect of all claims arising from a single incident exceeds the prescribed maximum amount, the insurer is entitled to be indemnified by the Nominal Defendant for the amount by which the insurer’s liability exceeds that prescribed maximum amount.
The prescribed maximum amount is:
$200 million, or
such other amount as may be prescribed by the regulations as the prescribed maximum amount for the purposes of this section.
A change to the prescribed maximum amount does not apply in respect of a liability arising in connection with a motor accident that occurs before the change takes effect.
The Nominal Defendant is not personally liable to pay any amount payable in satisfaction of the liability of the Nominal Defendant to indemnify an insurer under this section, but every such amount is to be paid by the Nominal Defendant out of the Nominal Defendant’s Fund established under Part 2.4.
This Act’s bill:Explanatory memorandumSecond reading speech
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