Limitations on settling claims relating to motor vehicles
21 Limitations on settling claims relating to motor vehicles
Subject to this section, a person required to be licensed as an agent must not, when acting on behalf of another, settle or compromise or attempt to settle or compromise a claim in respect of loss or injury arising out of the use of a motor vehicle after proceedings have been instituted in a court in respect of that loss or injury. Maximum penalty: Maximum penalty: $10 000.
This section does not apply unless the process by which the proceedings are instituted has been served on the defendant to those proceedings.
It is a defence to a charge of an offence against subsection (1) if it is proved that the defendant did not know, and could not by the exercise of reasonable diligence have discovered, that proceedings had been instituted in a court in respect of the loss or injury.
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