Australian Capital Territory Numbered Acts Australian Capital Territory Numbered Acts(1) An authorised insurer is, despite any other Territory law, liable to indemnify the insured persons under a third-party policy of the insurer in relation to any liability that the policy purports to cover.
(2) Without limiting subsection (1), it is not a defence to an action against an authorised insurer for the insurer to claim that the insurer is not liable under a third-party policy because of any act or omission of the owner or any driver of the motor vehicle insured under the policy.
Examples
1 The insurer cannot claim that the policy was obtained by a false statement or misrepresentation or nondisclosure, whether fraudulent, material or otherwise.
2 The insurer cannot claim that the owner committed a breach of, or failed to comply with, the policy.
3 The insurer cannot claim that the owner or driver committed an offence against the road transport legislation or any other law.
(3) Without also limiting subsection (1), the fact that a third-party policy contains a term, condition or warranty not in the terms prescribed under the regulations does not affect the validity or operation of the policy, but the term, condition or warranty is void.
(4) An authorised insurer must not, on a proposal for a third-party policy, issue a policy of insurance or indemnity that—
(a) is not a third-party policy; or
(b) has a term, condition or warranty not in the terms prescribed under the regulations.
Maximum penalty (subsection (4)): 20 penalty units.