Change in vehicle class involving higher insurer’s premium

Current

(1)

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 higher insurer’s premium would have been payable if the change had happened before the relevant date.

(2)

The registered operator of the vehicle must—

(a)

before the change is made—

(i)

give the vehicle’s insurer written notice of the change and when it is to be made; and

(ii)

pay the insurer the premium shortfall; and

(b)

as soon as practicable, but not more than 14 days, after giving notice under paragraph (a)(i), give transport administration a written notice—

(i)

identifying the vehicle and the registered operator; and

(ii)

stating the nature of the change to the vehicle or its use and when the change was, or is to be, made; and

(iii)

containing or accompanied by a receipt or other evidence that the premium shortfall has been paid.

Maximum penalty—20 penalty units.

(3)

However, if the change is to happen on a transfer of the vehicle’s registration, transport administration may arrange with the registered operator to notify the vehicle’s insurer of the change on the registered operator’s behalf.

(4)

If an arrangement is made under subsection (3)—

(a)

subsection (2) does not apply to the registered operator; and

(b)

transport administration must give the vehicle’s insurer written notice of the change and when it was made; and

(c)

the new registered operator must, if asked by the insurer, pay the insurer the premium shortfall.

(5)

In this section—

formula amount means the amount 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 vehicle’s class after the change.

P₂ means the annual insurer’s premium, calculated at the relevant date, for the class under which the vehicle was insured before the change.

premium shortfall means the higher of the following amounts—

(a)

the formula amount;

(b)

$10.

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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9 Change in vehicle class involving higher insurer’s premium