Queensland: Motor Accident Insurance Act 1994 (Qld)

Motor Accident Insurance Act 1994 An Act to provide for a compulsory third-party insurance scheme covering liability for personal injury arising out of motor vehicle accidents, and for other purposes Part 1 Preliminary 1 Short title This Act may be cited as the Motor Accident Insurance Act 1994. 2 Commencement This Act commences on a day to be fixed by proclamation. 3 Objects The objects of this Act are— (a) to continue and improve the system of compulsory third-party motor vehicle insurance (CTP insurance), and the scheme of statutory insurance for uninsured and unidentified vehicles, operating in Queensland; and (b) to establish a basis for assessing the affordability of CTP insurance; and (c) to keep the costs of CTP insurance at a level the average motorist can afford; and (d) to promote competition in the setting of premiums for CTP insurance; and (e) to provide for the licensing and supervision of insurers providing CTP insurance under CTP insurance policies; and (f) to encourage licensed insurers to act in a way that supports the integrity of, and public confidence in, the statutory insurance scheme; and (g) to encourage the speedy resolution of personal injury claims resulting from motor vehicle accidents; and (h) to promote and encourage, as far as practicable, the rehabilitation of claimants who sustain personal injury because of motor vehicle accidents; and (i) to establish and keep a register of claims to help the administration of the statutory insurance scheme and the detection of fraud; and (j) to promote measures directed at eliminating or reducing causes of motor vehicle accidents and mitigating their results; and (k) to establish measures directed at eliminating or reducing the practice of giving or receiving consideration for a claim referral or potential claim referral, or soliciting or inducing a claimant to make a claim, in contravention of this Act. 4 Definitions In this Act— act of terrorism see section 4B. administration fee means the fee payable to transport administration for work done in the administration of the statutory insurance scheme. affected person, in relation to a decision, for part 5A, see section 81. affordability index means 45% of Queensland full-time adult persons ordinary time earnings declared by the Australian Statistician in the original series of the statistician's average weekly earnings publication most recently published. agricultural machine means an agricultural machine for which registration is required under the Transport Operations (Road Use Management—Vehicle Registration) Regulation 2021. assessment period see section 13(2). associate, of a law practice, see the Legal Profession Act 2007, section 7(1). associated person, for an investigated person, for part 5B, see section 87ZA. authorised person, for part 5A, see section 81. average weekly earnings, for a financial year, means the amount of Queensland full-time adult persons ordinary time earnings declared by the Australian Statistician in the original series of the statistician's average weekly earnings publication most recently published before the start of the financial year. barrister see the Legal Profession Act 2007, schedule 2. claim means a claim for damages based on a liability for personal injury arising out of a motor vehicle accident and, for a fatal injury, includes a claim on behalf of the deceased's dependants or estate. claimant means a person by whom, or on whose behalf, a claim is made. Examples of claimants— 1 An attorney acts under an enduring power of attorney under the Powers of Attorney Act 1998 for a person injured in a motor vehicle accident. In this case, both the attorney (in the attorney's representative capacity) and the person for whom the attorney acts are regarded as claimants. 2 A guardian or an administrator acts under the Guardianship and Administration Act 2000 for a person injured in a motor vehicle accident. In this case, the guardian or administrator (in his or her representative capacity) and the injured person are regarded as claimants. class— (a) of CTP insurance (or CTP insurance policies)—means CTP insurance (or CTP insurance policies) for a particular class of motor vehicles; or (b) of motor vehicles—means a class of motor vehicles created by classification under a regulation. commission means the Motor Accident Insurance Commission. commissioner means the insurance commissioner. compulsory conference see section 51A(1). costs— (a) when used in reference to legal costs, includes disbursements; and (b) when used in reference to the costs of an insurer on a claim, includes— (i) the amount paid out by the insurer on the claim to the claimant or for the claimant's benefit, including— (A) the cost to the insurer of providing rehabilitation services in connection with the claim; and (B) the cost to the insurer of paying private hospital, medical and pharmaceutical expenses in connection with the claim; and (ii) the cost to the insurer of investigating the claim and of litigation related to the claim (but not the insurer's general administration costs). costs statement see section 51B(6)(e). court, in relation to a claim, means— (a) if a proceeding based on the claim has been brought—the court hearing the proceeding; or (b) if no proceeding based on the claim has been brought—a court with jurisdiction to hear the claim. criminal history, of a person, means the record of offences of which the person has been convicted in Queensland or elsewhere before or after the commencement of this Act. CTP is an abbreviation of 'compulsory third-party'. CTP insurance see section 3(a). CTP insurance policy means— (a) a policy of insurance under this Act for a motor vehicle insuring against liability for personal injury caused by, through or in connection with the motor vehicle; or (b) a policy of insurance, or a statutory indemnification, for a motor vehicle registered under the law of another State or a Territory, providing insurance, or indemnifying against liability, for personal injury caused by, through or in connection with the vehicle anywhere in Australia. declared costs limit means the amount fixed by the Minister under section 100A as the declared costs limit. decision notice, for part 5A, see section 87SD(1). eligible person means a person who, under the National Injury Act, section 12, is eligible to participate in the injury insurance scheme. former Act means the Motor Vehicles Insurance Act 1936. GST means the tax payable under the GST law. GST law means— (a) A New Tax System (Goods and Services Tax) Act 1999 (Cwlth); and (b) the related legislation of the Commonwealth dealing with the imposition of a tax on the supply of goods and services. GVM means gross vehicle mass. identity card, for part 5A, see section 81. industry deed means an agreement, in the form approved by regulation, between the commission, transport administration, the Nominal Defendant and licensed insurers regulating the conduct of CTP insurance business and matters incidental to— (a) the conduct of the business; or (b) the statutory insurance scheme. Note— For a statement of the subjects that may be covered by the industry deed, see section 65. information notice, for an original decision, for part 5A, see section 81. injured person means a person who suffers personal injury because of a motor vehicle accident. injury insurance scheme means the national injury insurance scheme, Queensland established under the National Injury Act, chapter 2. injury insurance scheme levy means the levy under the National Injury Act. insurance agency means the National Injury Insurance Agency, Queensland established under the National Injury Act. insurance premium means the gross premium for a CTP insurance policy (including levies and administration fee). insured motor vehicle means a motor vehicle for which a CTP insurance policy is in force. insured person means— (a) a person who is insured under a CTP insurance policy or, if the person is dead, the person's personal representative; or (b) a person whose wrongful act or omission causes personal injury for which an action lies against the Nominal Defendant under this Act or, if the person is dead, the person's personal representative. insurer's premium means an insurer's consideration for providing insurance under a CTP insurance policy. internal review, of an original decision, for part 5A, see section 87SA(1). internal review decision, for part 5A, see section 81. investigated person, for part 5B, see section 87ZA. investigator, for part 5B, see section 87ZA. law practice see the Legal Profession Act 2007, schedule 2. law practice certificate see section 36B(1). licence means a licence under part 5. licensed insurer means an insurer that holds a licence, other than an insurer whose licence is under suspension. lower offer limit means the amount fixed by the Minister under section 100A as the lower offer limit. mandatory final offer see section 51C(2). mobile machinery has the meaning given by the Transport Operations (Road Use Management—Vehicle Registration) Regulation 2021. motor vehicle means a vehicle for which registration is required under the Transport Operations (Road Use Management) Act 1995 and includes a trailer. motor vehicle accident means an incident from which a liability for personal injury arises that is covered by insurance under the statutory insurance scheme. National Injury Act means the National Injury Insurance Scheme (Queensland) Act 2016. non-medicinal drug means a drug other than one genuinely and lawfully consumed for medical or therapeutic purposes. notice, for part 5A, see section 81. occupier, of a place, for part 5A, see section 81. of, a place, for part 5A, see section 81. offence warning, for a requirement by an authorised person, for part 5A, see section 81. officer has the same meaning as in the Corporations Act. official panel of medical experts see section 45A(1)(a). original decision, for part 5A, see section 81. owner, of a thing that has been seized under part 5A, see section 81. participant, in the injury insurance scheme, see the National Injury Act, section 14(1). personal injury includes— (a) fatal injury; and (b) prenatal injury; and (c) damage to spectacles, contact lenses, dentures, hearing aids, crutches, wheelchairs, artificial limbs and prosthetic devices. person in control, of a thing, for part 5A, see section 81. place, for part 5A, see section 81. premises, for part 5A, see section 81. principal, of a law practice, see the Legal Profession Act 2007, section 7(4). public place— (a) generally, has the meaning given by the Transport Operations (Road Use Management) Act 1995; and (b) for part 5A, see section 81. reasonably believes means believes on grounds that are reasonable in the circumstances. reasonably suspects means suspects on grounds that are reasonable in the circumstances. registered operator, of a motor vehicle, means a person recorded in the details of the registration of the vehicle as the registered operator or as the owner of the motor vehicle. registration, of a motor vehicle, includes a permit, plate or other authorisation under the Transport Operations (Road Use Management—Vehicle Registration) Regulation 2021 permitting a motor vehicle to be used on a road without registration but does not include an authorisation under section 14 of that regulation. rehabilitation means the use of medical, psychological, physical, social, educational and vocational measures (individually or in combination)— (a) to restore, as far as reasonably possible, physical or mental functions lost or impaired through personal injury; and (b) to optimise, as far as reasonably possible, the quality of life of a person who suffers the loss or impairment of physical or mental functions through personal injury. related body corporate, for an insurer, has the meaning given by the Corporations Act. road has the meaning given by the Transport Operations (Road Use Management) Act 1995. self-insurer means— (a) the Commonwealth; or (b) a State (other than Queensland) or a Territory that does not have its motor vehicles insured under CTP insurance policies. serious personal injury see the National Injury Act, schedule 1. share of the market for CTP insurance business means a percentage, calculated by the commission under principles prescribed by regulation, representing the proportion that an insurer's share of total CTP insurance premiums bears to the total premiums for CTP insurance policies of classes specified by regulation. statutory insurance scheme means the insurance scheme established by this Act. trailer means a vehicle without motive power designed to be hauled by a motor vehicle. supervising principal, of a law practice in relation to a claim, means the principal of the law practice who has the primary responsibility for the conduct of the claim. transport administration means— (a) the chief executive of the department within which the Transport Planning and Coordination Act 1994 is administered; or (b) a person who is, by delegation or direction of the chief executive, responsible for carrying out functions relevant to the administration of the statutory insurance scheme. treatment, care and support needs, of a person, see the National Injury Act, section 8. uninsured motor vehicle means a motor vehicle for which there is no CTP insurance policy in force, other than a motor vehicle owned by a self-insurer or a trailer. upper offer limit means the amount fixed by the Minister under section 100A as the upper offer limit. vehicle, for part 5A, see section 81. wrongful act or omission includes a negligent act or omission. 4A References to insurer's premium, a fee or costs A reference in this Act to an insurer's premium, a fee or costs extends to any related charge (whether treated as a component of the premium, fee or costs or separately identified) to reimburse or offset the liability of the person to whom the premium, fee or costs are payable for GST. 4B Meaning of act of terrorism (1) An act of terrorism is an act done or threat made by a person— (a) for an ethnic, ideological, political, religious or similar purpose; and (b) with the intention to— (i) cause personal injury or damage to property; and (ii) influence a government or put the public, or a section of the public, in fear. (2) It does not matter whether the person is acting alone or with others or in connection with an organisation or government. (3) To decide whether the act was done or the threat was made for a purpose or with an intention mentioned in subsection (1), regard may be had to the nature of the act or threat and the context in which the act was done or the threat was made. 5 Application of this Act (1) This Act applies to personal injury caused by, through or in connection with a motor vehicle if, and only if, the injury— (a) is a result of— (i) the driving of the motor vehicle; or (ii) a collision, or action taken to avoid a collision, with the motor vehicle; or (iii) the motor vehicle running out of control; or (iv) a defect in the motor vehicle causing loss of control of the vehicle while it is being driven; and (b) is caused, wholly or partly, by a wrongful act or omission in respect of the motor vehicle by a person other than the injured person. (2) For an uninsured motor vehicle, subsection (1) applies only if the motor vehicle accident out of which the personal injury arises happens on a road or in a public place. (3) However, this Act does not apply to personal injury caused by, through or in connection with— (a) a tractor, backhoe, bulldozer, end-loader, forklift, industrial crane or hoist, or other mobile machinery, other than an agricultural machine; or (b) an agricultural machine; or (c) a motor vehicle adapted to run on rail or tram tracks; or (d) an amphibious vehicle; or (e) a motor vehicle of a class prescribed by regulation; unless the motor vehicle accident out of which the injury arises happens on a road. (4) For subsection (1)(b), the reference to a wrongful act or omission in respect of the motor vehicle does not include the use of the motor vehicle at the particular time it is being used for the actual doing of an act or making of a threat that is an act of terrorism. (5) The following is an example of a particular time when a motor vehicle is not being used for the actual doing of an act that is an act of terrorism— A is the driver of a motor vehicle from which a bomb is thrown at a government building. It is established that at the time the bomb is thrown the motor vehicle is being used for an act of terrorism. In driving away from the building after the bomb is thrown, A runs into a motor vehicle being driven by B. At the time A's motor vehicle runs into B's motor vehicle A's motor vehicle is not being used for the actual doing of an act of terrorism. (6) Subsection (4) only applies to an act of terrorism happening on or after 1 January 2002. Part 2 Motor Accident Insurance Commission Division 1 Establishment of the commission 6 Establishment of commission The Motor Accident Insurance Commission is established. 7 Constitution of the commission (1) The insurance commissioner, in the commissioner's official capacity (but not in the capacity of Nominal Defendant), constitutes the commission. (2) The insurance commissioner is to be employed under the Public Sector Act 2022. 8 Commission to be body corporate (1) The commission— (a) is a body corporate; and (b) has a seal; and (c) may sue and be sued under the name Motor Accident Insurance Commission. (2) The commission has all the powers of an individual and may, for example— (a) enter into contracts; and (b) acquire, hold, dispose of, and deal with, property; and (c) employ staff (including temporary staff); and (d) appoint agents and attorneys; and (e) engage consultants; and (f) fix charges, and other terms, for the provision of services by the commission. (3) The commission's seal is to be kept as directed by the commissioner and may be used only as directed or authorised by the commissioner. (4) Judicial notice must be taken of the imprint of the seal appearing on a document and the document must be presumed to have been properly sealed unless the contrary is proved. 9 Power of delegation The commission may delegate its powers under this Act. 9A Commission is statutory body (1) Under the Statutory Bodies Financial Arrangements Act 1982, the commission is a statutory body. (2) The Statutory Bodies Financial Arrangements Act 1982, part 2B sets out the way in which the commission's powers under this Act are affected by the Statutory Bodies Financial Arrangements Act 1982. Division 2 General functions of commission 10 Commission's functions (1) The commission's functions are to— (a) supervise insurers operating under the statutory insurance scheme and issue, suspend or withdraw licences for insurers operating under the scheme; and (b) regulate the statutory insurance scheme; and (c) establish and revise prudential standards with which licensed insurers must comply; and (d) establish and revise standards about the proper management of claims with which licensed insurers must comply; and (e) monitor the management of claims by insurers under the statutory insurance scheme and, in particular, the insurers' compliance with their obligations under part 4; and (f) appoint, under the industry deed, a person to arbitrate disputes between 2 or more insurers about a claim; and (g) fix for each class of CTP insurance the range within which an insurer's premium must fall; and (h) recommend the levies and the administration fee payable under this Act; and (i) monitor the availability, adequacy and use of rehabilitation services for claimants who suffer personal injury in motor vehicle accidents and develop programs, resources and guidelines to overcome deficiencies in the services; and (j) provide funds for, or contribute in other ways to, the provision of infrastructure to facilitate the rehabilitation of persons injured in motor vehicle accidents; and (k) provide funds for research and education in the field of rehabilitation and the provision of rehabilitation services; and (l) provide funds for research into the causes of motor vehicle accidents and their prevention; and (m) establish and maintain a call centre from which the public may obtain information on the statutory insurance scheme; and (n) carry out, or contribute to, advertising campaigns to increase public awareness of the causes of motor vehicle accidents, and of the economic, social and personal cost of motor vehicle accidents; and (o) promote and, if funds are available, make financial contributions towards— (i) the regular inspection of motor vehicles to ensure safety and roadworthiness; and (ii) the training of drivers (including the provision of defensive driving courses); and (iii) training in first aid; and (iv) the provision, maintenance and support of the infrastructure necessary to reduce the incidence of motor vehicle accidents and minimise the results; and (p) monitor the efficiency of the statutory insurance scheme and, in particular, the proportion of the funds of the scheme paid to claimants or applied for their direct benefit; and (q) develop and coordinate strategies to identify and combat fraud in or related to claims; and (r) keep the industry deed under review and make recommendations for its amendment; and (s) keep the statutory insurance scheme generally under review and make recommendations for its amendment; and (t) conduct research and collect statistics about the statutory insurance scheme; and (u) perform another function given to the commission under this or another Act. Note— For the functions of the commission in relation to the injury insurance scheme, see the National Injury Act, chapter 5. (2) In determining prudential standards for licensed insurers, the commission must have proper regard to the prudential standards that apply to the insurance industry under Commonwealth legislation. (3) The commission must publish on its website standards made under subsection (1)(c) or (d). (4) A standard made under subsection (1)(d) applies to the management of a claim from the day the standard is published, whether the claim was made before or after that day. 11 Advisory committees (1) The commission may establish 1 or more advisory committees to advise on the exercise of the commission's statutory functions. (2) The matters on which an advisory committee may provide advice are to be decided by the commission with the approval of the Minister. (3) An advisory committee is to consist of persons appointed by the Minister on the commission's nomination. (4) The terms on which the members of an advisory committee hold office are to be decided by the Minister. Division 3 Insurance premiums 12 Insurance premiums (1) An insurance premium under the statutory insurance scheme consists of the following components— (a) the insurer's premium; (b) the statutory insurance scheme levy; (c) the hospital and emergency services levy; (d) the Nominal Defendant levy; (e) the injury insurance scheme levy; (f) the administration fee. (2) The insurer's premium is the insurer's consideration for providing the insurance. (3) The statutory insurance scheme levy is to cover the estimated costs of— (a) the administration of this Act (other than costs associated with the Nominal Defendant scheme) for the financial year in which the levy is fixed, together with any shortfall from previous financial years; and (b) the commission performing its functions under the National Injury Act, chapter 5 for the financial year in which the levy is fixed. (4) The hospital and emergency services levy is to cover a reasonable proportion of the estimated cost of providing public hospital services and emergency services for the financial year for which the levy is fixed having regard to the number of people who— (a) are injured in motor vehicle accidents; and (b) make use of public hospital services and emergency services as a result of their injuries; and (c) are claimants or potential claimants under the statutory insurance scheme, but are not— (i) participants in the injury insurance scheme; or (ii) eligible persons. (5) The Nominal Defendant levy is to cover the estimated costs of the Nominal Defendant scheme for the financial year or other period for which the levy is fixed together with any shortfall from previous financial years. (6) The administration fee is the fee payable to transport administration for work done in the administration of the statutory insurance scheme. (7) The administration fee is a controlled receipt for the purposes of the Financial Accountability Act 2009. 13 The insurer's premium (1) An insurer's premium is to be set by each licensed insurer, within limits fixed by the commission, for each class of insurance. (2) The premiums are to relate to a period (an assessment period) fixed under a regulation. (3) The insurer's premium is to be set by the insurer on the basis that the insurance is to cover a registration period of 1 year. (3A) Subsection (3B) applies to a CTP insurance policy— (a) that comes into force after 30 June 2003; and (b) for which a person is entitled to an input tax credit for the insurer's premium component of the insurance premium for the policy. (3B) The insurer's premium consists of— (a) the amount set under subsection (1) for the class of insurance to which the policy relates; and (b) an additional amount prescribed under a regulation. (4) If the registration period is more or less than 1 year, the insurer's premium for the relevant CTP policy is— (a) the proportion of the insurer's premium for 1 year that the period of registration bears to 1 year; and (b) an additional amount fixed on a basis prescribed under a regulation. (5) A regulation under subsection (3B)(b) may prescribe a different amount for each class of insurance provided by each licensed insurer. (6) In this section— input tax credit has the meaning given by the A New Tax System (Goods and Services Tax) Act 1999 (Cwlth), section 195-1. 13A Premium rates (1) This section describes the process for setting the insurer's premiums, under section 13(1), for each assessment period. (2) The commission first fixes limits of insurer's premium for each class of CTP insurance. (3) The limits consist of a floor amount (below which the premium can not be set) and a ceiling amount (above which the premium can not be set). (4) Before the commission fixes the limits, the commission must invite written submissions from— (a) licensed insurers on matters relevant to the fixing of the limits and, in particular, on— (i) current factors and trends influencing the cost of insurance under the statutory insurance scheme; and (ii) any other factors that should, in the opinion of the insurers, influence the permissible range of insurers' premiums for the assessment period; and (b) major organisations representing motorists in Queensland. (5) The commission must at least once in each year obtain an actuarial analysis of the statutory insurance scheme and, at least once in each quarter, obtain an actuarial review of current trends that could affect the financial soundness of the scheme. (6) After considering the financial soundness of the statutory insurance scheme in the light of the most recent actuarial analysis and quarterly review obtained under subsection (5), the submissions made in response to the commission's invitations and other material the commission considers relevant, the commission must— (a) fix the limits of insurer's premium for each class of CTP insurance; and (b) give each licensed insurer a written notice— (i) stating the limits fixed for each class of CTP insurance; and (ii) requiring the insurer to submit its insurer's premiums for each class of CTP insurance for the relevant assessment period on or before a date stated in the notice; and (iii) specifying other requirements with which the insurer's submission must comply. (7) The premiums must be submitted in accordance with requirements specified in the notice within a time limit fixed under a regulation. (8) Each licensed insurer must give the commission written notice of the premiums set by the insurer on or before the date stated in the commission's notice. (9) On receipt of the notice from the insurer, the commission must, within a time limit fixed by a regulation— (a) record the premiums set by the insurer for the relevant assessment period for each class of CTP insurance; and (b) give the insurer a written notice confirming the insurer's insurance premiums for the relevant assessment period; and (c) notify transport administration of each insurer's insurance premiums for the relevant assessment period. (10) If a licensed insurer— (a) fails to submit premiums for each class of CTP insurance as required by the commission; or (b) sets a premium outside the limits allowed by the commission; the commission may, by written notice to the insurer, withdraw the insurer's licence. 14 Recommendations about levies and administration fee (1) At least 4 months before the end of each financial year, the commission must make recommendations to the Minister on the amount of— (a) the statutory insurance scheme levy for the next financial year; and (b) the hospital and emergency services levy for the next financial year; and (c) the Nominal Defendant levy for the next financial year and the component, if any, to be included in the levy for satisfying liabilities of the Nominal Defendant under section 33(2); and (d) the administration fee for the next financial year. Note— For the commission's role in making recommendations about the injury insurance scheme levy, see the National Injury Act, section 98. (2) A levy mentioned in subsection (1) or the administration fee may vary according to any 1 or more of the following factors— (a) the class of CTP insurance; (b) the period of insurance; (c) any other factor stated in a regulation. (3) If there is an unexpected increase in the Nominal Defendant's liabilities that necessitates, in the commission's opinion, an increase in the Nominal Defendant levy before the end of a financial year for which the levy has been fixed, the commission may, at any time, recommend a special increase in the Nominal Defendant levy. 14A Fixing levies and administration fee (1) Each of the following are to be fixed by regulation for each financial year— (a) the statutory insurance scheme levy; (b) the hospital and emergency services levy; (c) the Nominal Defendant levy; (d) the administration fee. (2) A regulation fixing levies and the administration fee for a particular financial year must be made at least 3 months before the beginning of the financial year. (3) However— (a) if a regulation fixing the levies and administration fee for a particular financial year is not made at least 3 months before the beginning of the relevant financial year— (i) the regulation commences 3 months after it is notified or on a later date specified in the regulation; and (ii) the levies and administration fee last fixed continue until the regulation commences; and (b) if the commission recommends a special increase in the Nominal Defendant levy, a regulation giving effect to the recommendation may be made at any time and comes into force on the date the regulation is notified or a later date specified in the regulation. 15 Report and recommendations when costs of insurance exceed the affordability index (1) The costs of CTP insurance exceed the affordability index if the insurance premium for a CTP insurance policy for a class 1 motor vehicle (assuming the insurer's premium is set at the highest amount set by a licensed insurer) exceeds the affordability index. (2) If the costs of CTP insurance exceed the affordability index, the commission must give the Minister a report about the effect of current trends on the affordability of CTP insurance. (3) Subsection (4) applies if the commission considers changes to the statutory insurance scheme or the injury insurance scheme are necessary to counter the effect of undesirable trends on the affordability of CTP insurance. (4) The commission may, in its report, recommend the changes. (5) If the report recommends changes to the injury insurance scheme, the commission must give a copy of the report to the Treasurer. (6) In fixing the range within which an insurer's premium for a class 1 motor vehicle must fall, the commission is not to be influenced by the fact that the proposed range could result in the costs of CTP insurance exceeding the affordability index if the ceiling amount is, according to actuarial advice, appropriate to ensure the financial soundness of the scheme. (7) The Minister must, as soon as practicable after receiving a report under subsection (2), cause a copy of the report to be laid before the Legislative Assembly. (8) In this section— class 1 motor vehicle means a motor vehicle of that class under a regulation. insurance premium, for a CTP insurance policy for a class 1 motor vehicle, does not include the relevant insolvency liability component or an amount prescribed under section 13(3B)(b) for the insurer's premium component of the insurance premium for the policy. relevant insolvency liability component means the amount included in the Nominal Defendant levy that the Minister considers is attributable to satisfying liabilities of the Nominal Defendant under section 33(2). 15A [Repealed] Division 4 The Nominal Defendant 16 The Nominal Defendant (1) The Nominal Defendant— (a) is a body corporate; and (b) has a seal; and (c) may sue and be sued under the name Nominal Defendant. (2) The commissioner is the Nominal Defendant. (3) The Nominal Defendant has all the powers of an individual and may, for example— (a) enter into contracts; and (b) acquire, hold, dispose of, and deal with, property; and (c) employ staff (including temporary staff); and (d) appoint agents and attorneys; and (e) engage consultants. (4) The Nominal Defendant may delegate powers under this Act. (5) The Nominal Defendant's seal is to be kept as directed by the commissioner and may be used only as directed or authorised by the commissioner. (6) Judicial notice must be taken of the imprint of the seal appearing on a document and the document must be presumed to have been properly sealed unless the contrary is proved. 16A Nominal Defendant is statutory body (1) Under the Statutory Bodies Financial Arrangements Act 1982, the Nominal Defendant is a statutory body. (2) The Statutory Bodies Financial Arrangements Act 1982, part 2B sets out the way in which the Nominal Defendant's powers under this Act are affected by the Statutory Bodies Financial Arrangements Act 1982. 17 Nominal Defendant to keep public office (1) The Nominal Defendant must have a public office. (2) Legal process is served personally on the Nominal Defendant by leaving it at the Nominal Defendant's public office with a person apparently employed at the office. 18 Nominal Defendant taken to be licensed insurer The Nominal Defendant is taken to be a licensed insurer (other than for parts 3 and 5) and is bound by the industry deed. Division 5 Annual report 19 Annual report (1) The commission must report annually under the Financial Accountability Act 2009. (2) The report must— (a) include a report dealing with all significant aspects of the operation of the statutory insurance scheme, with particular reference to the operation of the provisions affecting the management of claims; and (b) contain information about the cost to the community of motor vehicle accidents for the relevant financial year; and (c) contain information about the cost of administering this Act and the Nominal Defendant scheme for the financial year; and (d) contain further information that may be required by regulation; and (e) include the audited accounts of the Motor Accident Insurance Fund and the Nominal Defendant Fund. Note— See also the National Injury Act, section 104. (3) In this section— motor vehicle accident includes an incident resulting in serious personal injury in relation to which the National Injury Act applies. Part 3 Compulsory insurance Division 1 Obligation to insure 20 Offence of driving uninsured vehicle etc. (1) A person must not drive an uninsured motor vehicle on a road or in a public place. Maximum penalty—80 penalty units. (2) A person who is the owner of an uninsured motor vehicle must not permit someone else to drive it on a road or in a public place. Maximum penalty—80 penalty units. (3) It is a defence to a charge of an offence against this section to prove that the defendant had reasonable grounds to believe and did believe the motor vehicle was an insured motor vehicle. (4) This section does not apply to a motor vehicle of a class exempted from its application by regulation. (5) Also, this section does not apply to a motor vehicle to which a gratuitous CTP insurance policy under section 20A(2) relates. 20A Temporary gratuitous insurance (1) This section applies if a person has been issued a permit under the Transport Operations (Road Use Management—Vehicle Registration) Regulation 2021, section 17, authorising the use of an unregistered motor vehicle on roads. (2) A gratuitous CTP insurance policy in terms of the schedule under which the Nominal Defendant is the insurer is taken to be in force for the motor vehicle while the permit is in force. (3) However, subsection (2) does not apply for any period when a CTP insurance policy is otherwise in force for the motor vehicle while the permit is in force. Division 2 Selection of insurer 21 Selection of insurer (1) On lodging an application for the registration of a motor vehicle with transport administration, the applicant must select a licensed insurer to be the insurer under the CTP insurance policy for the vehicle by exercising 1 of the following options— (a) the applicant may, at the time of lodging the application, nominate, in a way approved by transport administration, a particular licensed insurer to be the insurer under the CTP insurance policy for the vehicle and pay the appropriate insurance premium to transport administration; (b) the applicant may lodge with the application a certificate in a form approved by the commission certifying that the appropriate insurance premium has been paid to the licensed insurer on whose behalf the certificate is issued. (2) The registered operator of a registered motor vehicle may, on lodging an application for renewal of registration or at any other time, change the insurer for the vehicle as from the end of the current registration period by nominating, in a way approved by transport administration, another licensed insurer as the insurer of the motor vehicle. (3) However— (a) if a registered operator lodges an application for renewal of registration before the end of a current period of registration, a nomination to change the insurer for the period for which the renewal is to take effect can not be made after the time of lodging the application for renewal; and (b) a nomination under subsection (2) becomes void if, between the time it is lodged and the time it is to take effect— (i) the registration of the motor vehicle is transferred; or (ii) a further notice of nomination is lodged with transport administration under subsection (2). (4) On lodging an application for renewal of the registration of a motor vehicle with transport administration, the applicant must— (a) pay the appropriate insurance premium to transport administration; or (b) lodge with transport administration a certificate in a form approved by the commission certifying that the appropriate insurance premium (for the period for which the registration is to be renewed) has been paid to the licensed insurer on whose behalf the certificate is issued. (5) If an applicant for registration or renewal of registration of a motor vehicle pays to transport administration an amount that is (after subtracting any amount payable to transport administration by way of registration fees and charges) less than the appropriate insurance premium but within the tolerances set by the commission— (a) the applicant is taken to have paid the appropriate insurance premium; and (b) the amount is to be applied as follows— (i) first to paying the registration fees and charges, the administration fee and the levies; (ii) secondly to paying the remaining balance to the insurer. (6) However, in a case to which subsection (5) applies, the CTP insurer may recover, as a debt, from the registered operator of the motor vehicle the difference between the insurer's premium the insurer would have received if the insurance premium had been paid in full and the amount actually received by the insurer. (7) The commission may— (a) fix tolerances for subsection (5); or (b) change or replace tolerances previously fixed for subsection (5). (8) When the commission fixes the tolerances (or changes or replaces tolerances previously fixed), the commission must give written notice of the tolerances (or the new tolerances) to transport administration and all licensed insurers. (9) For this section— (a) a person is taken to have made a nomination in a way approved by transport administration if the nomination is communicated to transport administration in a way transport administration considers acceptable; and (b) a person is taken to have lodged a certificate with transport administration if the certificate or its contents are transmitted to, and received by, transport administration in a way transport administration considers acceptable. (10) In this section— appropriate insurance premium means the gross insurance premium calculated by reference to— (a) the period for which registration is to be granted or renewed; and (b) the class of motor vehicle; and (c) the insurer's premium for the insurer last selected under this section for the relevant class of insurance. 22 Licensed insurer can not decline CTP business (1) A CTP insurance policy under this Act is binding on the licensed insurer by force of this Act, and a licensed insurer can not repudiate, or decline to issue or renew, a CTP insurance policy. (2) If an application is made to a licensed insurer for an insurance certificate for use in connection with an application to register or renew the registration of a motor vehicle, and the appropriate insurance premium is tendered to the insurer by the applicant, the insurer must issue the certificate. Maximum penalty—300 penalty units. (3) A court that convicts an insurer of an offence against subsection (2) may, by order, withdraw the licence. 23 Statutory policy of insurance (1) When transport administration registers or renews the registration of a motor vehicle— (a) a policy of insurance in terms of the schedule comes into force for the motor vehicle when the registration or renewal of registration takes effect; and (b) the licensed insurer selected under this part in or in relation to the relevant application is the insurer under the policy. (2) The policy remains in force for the period of registration and for a further period of grace ending on the first of the following to happen— (a) on the renewal of the registration or the grant of a permit allowing the vehicle to be driven on roads while unregistered; (b) on the expiry of 30 days from the end of the period of registration. (3) However— (a) if the registration is cancelled before the end of the period for which it was granted or renewed, the policy ceases to be in force when the cancellation takes effect (and there is no period of grace); and (b) if a cancellation of registration takes effect during the period of grace, the period of grace ends when the cancellation takes effect; and (c) the period of grace does not include a period for which the vehicle has plates attached to it that allow it to be driven while unregistered; and (d) if the registered operator of the motor vehicle has selected a licensed insurer to become the insurer of the motor vehicle as from the end of the period of registration, the selected insurer becomes the insurer under the policy for the period of grace. (3A) If the registration of a motor vehicle is renewed after the end of the period of grace, the vehicle is uninsured from the end of the period of grace until the registration is renewed (even though the period for which the registration is renewed is backdated to the end of the previous registration period). (4) The validity of the policy is unaffected by— (a) transport administration's failure to collect the insurance premium in full; or (b) another error of transport administration or an error of an insurer. (5) If a CTP insurance policy comes into force under this Act and the insurance premium has not been collected, in full, by or for the insurer, the insurer may recover the premium, or as much of it as has not been paid, as a debt, from the person in whose name the motor vehicle is registered. (6) If— (a) a cheque received by transport administration for the premium, or for an amount including the premium, on a CTP insurance policy is not paid on first presentation; or (b) transport administration becomes aware that, because of administrative error, the amount accepted by it as the premium on a CTP insurance policy is not the full amount of the premium; or (c) a payment received electronically by transport administration for the premium, or for an amount including the premium, on a CTP insurance policy is subsequently withdrawn; transport administration must, as soon as practicable, inform the insurer of the relevant fact and of any action taken by transport administration to recover the premium or the balance of the premium. (7) If provision is made by regulation for the gratuitous insurance of vehicles of a particular class under policies of CTP insurance, a vehicle of the relevant class must be regarded, subject to any conditions and limitations prescribed by regulation, as insured by a CTP insurance policy under which the Nominal Defendant is the insurer. (8) If a licensed insurer issues a CTP insurance certificate for an uninsured motor vehicle, the motor vehicle is covered by the insurer under a CTP insurance policy while the vehicle is being driven as far as is reasonably necessary— (a) to obtain an inspection certificate, or a weighbridge certificate, necessary for the vehicle's registration; or (b) to take the vehicle to the nearest convenient place for an inspection that is necessary for registration. (9) However, CTP insurance cover under subsection (8) does not extend to an unregistered vehicle while it is being driven to a place to arrange or undergo repair or another purpose not specifically authorised by the subsection. (10) In this section— inspection certificate means an inspection certificate under a regulation made under the Transport Operations (Road Use Management) Act 1995, section 148. 24 Transfer of registration A CTP insurance policy is unaffected by a change of ownership, or a transfer of the registration of, a motor vehicle to which it relates. 25 Motor vehicle must be insured under correct class (1) An applicant for registration, or renewal of registration, of a motor vehicle must not make a misstatement or misrepresentation that results in— (a) the motor vehicle being incorrectly classified; and (b) a consequent reduction in the amount of the premium charged for the CTP insurance policy for the vehicle. Maximum penalty—30 penalty units. (2) However, it is a defence to a charge of an offence against subsection (1) to prove that the defendant believed on reasonable grounds that the misstatement or misrepresentation was true. (2A) A person must not drive a motor vehicle, or permit a motor vehicle to be driven, on a road or in a public place knowing that the vehicle has been incorrectly classified and that, as a result, less than the appropriate insurance premium has been paid for a policy of CTP insurance. Maximum penalty—30 penalty units. (3) An insurer must not fix the insurance premium to be paid for a CTP insurance policy on the basis of a classification of a motor vehicle the insurer knows to be incorrect. Maximum penalty—300 penalty units. 26 Non application in certain cases This division does not apply to— (a) a trailer other than a trailer that is registered, or about to be registered, under the Interstate Road Transport Act 1985 (Cwlth); or (b) a motor vehicle owned by a self-insurer. Division 3 Disbursement of gross insurance premiums 27 Disbursement of gross premiums by transport administration (1) Transport administration must in each week— (a) give the commission a return setting out, for the previous week— (i) the total amount received by way of insurance premiums; and (ii) the total amount received by way of insurer's premium for each licensed insurer; and (iii) the amount received by way of statutory insurance scheme levy; and (iv) the amount received by way of hospital and emergency services levy; and (v) the amount received by way of Nominal Defendant levy; and (vi) the amount received by way of the injury insurance scheme levy; and (vii) the amount received by way of administration fee; and (b) pay to each licensed insurer the total amount received by way of insurer's premium for the licensed insurer; and (c) pay to the commission the total amount received by way of levies, other than amounts received by way of the injury insurance scheme levy. (2) Transport administration must also in each week— (a) give the insurance agency a return setting out, for the previous week, the amount received by way of the injury insurance scheme levy; and (b) pay to the insurance agency the total amount received by way of the injury insurance scheme levy. (3) For subsections (1)(c) and (2)(b), the total amount received by way of levy includes any amount received from a licensed insurer for transmission to the commission or the insurance agency. (4) Transport administration may retain the amount received by way of administration fee. 27A Disbursement of gross premiums by insurers who receive premiums directly (1) Within a week after transport administration notifies a licensed insurer that it has received a certificate certifying payment of an insurance premium to the licensed insurer, the licensed insurer must— (a) pay to transport administration (for transmission to the commission or the insurance agency) the component of the insurance premium consisting of the levies; and (b) pay to transport administration the component of the insurance premium consisting of the administration fee. Maximum penalty—150 penalty units. (2) However, an insurer's liability to make payments under subsection (1) to transport administration, and transport administration's liability to pay insurer's premiums to the insurer, may be set off against each other under an arrangement between transport administration and the insurer (but such an arrangement is not to affect the extent of transport administration's liability to pay levies to the commission or the insurance agency). (3) If an insurer fails to make a payment to transport administration when required under this section, transport administration may recover the amount as a debt, together with interest at a rate fixed under a regulation. Division 4 The statutory funds 28 Motor Accident Insurance Fund (1) There is to be a fund called the Motor Accident Insurance Fund. (2) The fund consists of— (a) an amount transferred to the fund under section 33(6) or 106; and (b) the amounts received or recovered by the commission by way of the statutory insurance scheme levy under this Act; and (c) the amounts received or recovered by the commission by way of the hospital and emergency services levy under this Act; and (d) any penalties or penalty interest imposed under this Act; and (e) income derived from the investment of the fund. (3) The fund is to be applied to meet the cost of administering this Act, including— (a) all expenditure by the commission in the exercise of statutory powers and functions (including payments to be made under section 106(4) but not costs otherwise associated with the Nominal Defendant scheme); and (b) payments relating to an advance of amounts under subsection (6), that are payable under the terms of the advance. (4) The amounts received into the fund by way of the hospital and emergency services levy are to be applied towards providing public hospital services and public emergency services and, for that purpose, are to be paid to relevant government entities. (5) The Treasurer may decide at which periodic intervals, and in what proportions, the amounts are to be paid. (6) The Treasurer may advance amounts to the fund on the terms the Treasurer considers appropriate. 29 Nominal Defendant Fund (1) There is to be a fund called the Nominal Defendant Fund. (2) The following amounts are to be paid into the fund— (a) the amounts to be paid by the Treasurer to the credit of the fund under section 106; (b) the income derived from the Nominal Defendant levy; (c) the amounts paid to, or recovered by, the Nominal Defendant under this Act; (d) amounts advanced to the fund under this section; (e) income derived from investment of the fund. (3) The following amounts are to be paid from the fund— (a) the costs of carrying out the functions of the Nominal Defendant under the statutory insurance scheme; (b) amounts required to satisfy liabilities of the Nominal Defendant for claims; (c) payments relating to an advance of amounts under subsection (4), that are payable under the terms of the advance. (4) The Treasurer may advance amounts to the fund on the terms the Treasurer considers appropriate. Division 5 Transfer of CTP business 30 Transfer of CTP business (1) The commission may, on the joint application of 2 licensed insurers, approve the transfer of CTP business from one insurer (the transferor) to the other (the transferee). (2) An approval under this section may be given on the conditions the commission considers appropriate. (3) Notice of an approval under this section must be published in the gazette. (4) On publication of the notice of approval in the gazette— (a) all rights and liabilities subject to the transfer are transferred to, and become rights and liabilities of, the transferee; and (b) this Act operates as if the transferee had been selected as the insurer under the CTP policies subject to the transfer; and (c) if the transferor's entire CTP business is transferred—the transferor's licence is withdrawn; and (d) if part of the transferor's CTP business is transferred—the transfer is an adequate reason for withdrawing the licence. Part 4 Claims Division 1 The insurer 31 Principles for determining the insurer (1) If personal injury is caused by, through or in connection with a motor vehicle, the insurer for the statutory insurance scheme is to be decided in accordance with the following principles— (a) if the motor vehicle is an insured motor vehicle—the insurer under the CTP insurance policy is, subject to this division, the insurer; (b) if the motor vehicle is not insured but a self-insurer is the registered owner—the self-insurer is the insurer; (c) if the motor vehicle is not insured and a self-insurer is not the registered owner—the Nominal Defendant is the insurer; (d) if the motor vehicle, or insurer under its CTP insurance policy, can not be identified—the Nominal Defendant is the insurer. (2) In any legal proceedings, it is to be presumed that a motor vehicle can not be identified if it is established by affidavit or oral evidence that proper inquiry and search have been made and have failed to establish the identity of the motor vehicle. (3) If a trailer is attached to a motor vehicle registered in Queensland or runs out of control after becoming accidentally detached from a motor vehicle registered in Queensland, the trailer must be regarded as part of the motor vehicle and the insurer of the motor vehicle is the insurer of the trailer but, in any other case, the insurer of a trailer registered in Queensland is the Nominal Defendant whose liability is to be decided as if the Nominal Defendant had issued a separate CTP insurance policy for the trailer. (4) However— (a) if a motor vehicle accident involving a trailer with a GVM of more than 4.5 tonnes happens outside the State—the Nominal Defendant is not the insurer of the trailer under subsection (3); and (b) if a CTP insurance policy (other than a supplementary policy) is issued for, or expressly extends to, a trailer—the insurer under the policy is the insurer of the trailer for all purposes. (5) In this section— supplementary policy means a policy of insurance for a trailer insuring against liability for personal injury caused by, through or in connection with the trailer, other than a liability covered under subsection (3). 32 Self-insurer as the insurer If personal injury is caused by, through or in connection with a motor vehicle that is not insured under a CTP insurance policy but a self-insurer is the registered owner, the self-insurer's liability is the same as if the self-insurer had been, when the motor vehicle accident happened, the insurer under a CTP insurance policy under this Act for the motor vehicle. 33 Nominal Defendant as the insurer (1) The Nominal Defendant's liability for personal injury caused by, through or in connection with a motor vehicle is the same as if the Nominal Defendant had been, when the motor vehicle accident happened, the insurer under a CTP insurance policy under this Act for the motor vehicle. (2) If the insurer under a CTP insurance policy becomes insolvent, the Nominal Defendant becomes the insurer under CTP policies in force under this Act for which the insolvent insurer was formerly the insurer unless the policies are transferred to some other licensed insurer. (3) The Nominal Defendant is liable for personal injury arising out of a motor vehicle accident outside Queensland only if— (a) the liability arises under subsection (2); or (b) the personal injury is caused by, through or in connection with a motor vehicle that is gratuitously insured under section 23(7). (4) Subject to subsection (5), if the Nominal Defendant Fund proves insufficient to meet the liabilities of the Nominal Defendant under subsection (2), the commissioner must make payments from the Motor Accident Insurance Fund to meet the deficiency. (5) The total payments from the Motor Accident Insurance Fund under subsection (4) and under section 106(4), including payments made under section 106(4) before the commencement of this subsection, can not be more than the amount that was transferred to the fund under section 106(3). (6) If an amount is recovered or received by the Nominal Defendant, by way of an action or a claim relating to the insolvency of an insurer under a CTP insurance policy, the Treasurer may, by written notice to the Nominal Defendant, direct it to transfer an amount, not exceeding the amount recovered or received, to the Motor Accident Insurance Fund. (7) However, the total amount the Treasurer may direct the Nominal Defendant to transfer to the Motor Accident Insurance Fund from all the amounts recovered or received relating to an insolvent insurer, as mentioned in subsection (6), must not exceed the total payments from the fund made by the commissioner under subsection (4) relating to that insolvent insurer. Division 2 Duty to notify accidents and claims and provide information 34 Duty to notify accidents to police (1) A person who proposes to make a claim (including a person acting in a representative capacity) must ensure that appropriate notice of the accident has been given to a police officer. (2) Appropriate notice of a motor vehicle accident is— (a) the giving of required particulars under the Transport Operations (Road Use Management) Act 199