Change in vehicle class involving lower insurer’s premium
10 Change in vehicle class involving lower insurer’s premium
This section applies if a change to a registered motor vehicle or its use changes the vehicle’s class to a class for which a lower insurer’s premium would have been payable if the change had happened before the relevant date.
However, this section applies only if the change is intended to be permanent.
The registered operator of the vehicle may ask the vehicle’s insurer for a refund of part of the insurer’s premium paid for the vehicle by giving the vehicle’s insurer a written notice—
stating the nature of the change to the vehicle or its use and when the change was, or is to be, made; and
containing or accompanied by evidence the change in class has been accepted by transport administration.
Before asking for the refund, the registered operator must give transport administration a written notice—
identifying the vehicle and the registered operator; and
stating the nature of the change to the vehicle or its use and when the change was, or is to be, made; and
if the change is a change in the use of the vehicle—containing enough information to show the change is intended to be permanent.
Transport administration may ask for some or all information stated in the written notice to be verified by statutory declaration.
The vehicle’s insurer must give the registered operator the refund within 1 month after receiving the request for the refund.
However, an insurer is not required to give the refund if—
the person making the request for the refund did not pay the insurance premium; or
the refund amount calculated under this section is less than $10; or
there has already been a refund given under this section in relation to the vehicle in the same registration period.
The amount of the refund must be worked out using the formula—
where—
A means the number of days remaining in the vehicle’s registration period after the change.
P1 means the annual insurer’s premium, calculated at the relevant date, for the class under which the vehicle was insured before the change.
P2 means the annual insurer’s premium, calculated at the relevant date, for the vehicle’s class after the change.
No right to the refund of a levy or the administration fee arises on change of class of a registered motor vehicle in the registration period.
In this section—
relevant date means the first day of the registration period in which the change to the registered motor vehicle or its use happens.
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