REPUBLIC OF NAURU

Motor Traffic (Amendment) Act 2014

No. 5 of 2014

An Act to amend the Motor Traffic Act 1937

Certified on 21 May 2014

Contents

1	Short title
2	Commencement
3	Act amended

SCHEDULE - AMENDMENT OF MOTOR TRAFFIC ACT 1937

[1]	Amendment of section 4 (Definition) 
[2]	Amendment of section 
[3]	Amendment of Part II 
[4]	Amendment of Section 16 
[5]	Insertion of new Part IV(A) 
[6]	Amendment of Section 42 
[7]	Amendment of Section 44 (2) (d)
[8]	Insert Schedule

Enacted by the Parliament of Nauru as follows:

1	Short title

This Act may be cited as Motor Traffic (Amendment) Act 2014.

2	Commencement

This Act commences upon certification by the Speaker.

3	Act Amended

The Schedule amends the Motor Traffic Act 1937.

SCHEDULE - AMENDMENT OF MOTOR TRAFFIC ACT 1937

[1]	 Amendment of section 4 (Definition)

1.1	Amend definition of Registrar

After the words ‘Motor Vehicles’ 

Insert

The words ‘and Licences’

The definition will now read;

‘Registrar’ means the Registrar of Motor Vehicles and Licences appointed in pursuance of this Ordinance;

1.2		Insert in alphabetical order

‘approved insurance company’ means an insurance company approved by the Minister for the purpose of this Act;

‘approved garage’ means a garage approved by the Minister for the purposes of this Act;

‘hospital’ means RON Hospital;

‘number plates’ mean one or more metal plates issued by the Registrar recording the unique identifying number assigned to each motor vehicle as provided under section 7 of this Act.

‘registration labels’ means a label issued under section 6A;

‘Regulations’ unless otherwise stated in this Act, means the Motor Traffic (Fees) Regulations 2012;

[2]	Amendment of section 5

After the words ‘Motor Vehicles’ 

Insert

The words ‘and Licences’

The provision will now read;

‘The Administrator in Council may appoint a person to be Registrar of Motor Vehicles and Licences, who shall exercise and perform such powers and functions as are prescribed’

[3]	Amendment of Part II – Registration of, and licences to drive, motor vehicles

Omit

Part II

Substitute

PART II – REGISTRATION OF, AND LICENCES TO DRIVE, MOTOR VEHICLES

6	Application for Registration of Motor Vehicle

(1)	An application for the registration or for the renewal or transfer of the registration, of a motor vehicle shall be made in Form 1 of the Schedule.

(2)	The completed application form shall be forwarded to the Registrar and must have attached to it any document required by any provision of this Act or its regulations.

(3)	The Registrar shall, within 7 working days, inform the applicant of the outcome of the application.

(4)	Any vehicle seeking registration under this Act must comply with the requirements of this Act and obtain a certificate of roadworthiness from an approved garage certifying the same.

(5)	A motor vehicle shall not be registered, and a registration shall not be renewed or transferred, under this Act unless, there is produced at the time of the application for registration, or renewal or transfer of registration:

(a)	a certificate of roadworthiness issued within seven days immediately before the making of that application in respect of that vehicle; and

(b)	a policy of insurance complying with Part IV(A) of this Act.

(6)	Subject to the payment of fees in accordance with the Regulations and to any other provision of this Act, the Registrar may:

(a)	register a motor vehicle in any class if satisfied that the motor vehicle complies with the requirements of subsection (1), (2) and (3); and

(b)	issue a certificate of registration accordingly.

(7) Subject to subsection (6):

(a)	unless sooner cancelled or suspended, the registration, or the renewal of the registration, of a motor vehicle remains in force for a period of 12 months; and

(c)	the renewal of the registration of a motor vehicle takes effect on the day after the current registration has expired.

(8) 	A certificate of registration for a motor vehicle belonging to the Republic shall be issued for the period that the motor vehicle remains the property of the Republic.

6A	Registration Labels

(1) The Registrar shall, in respect of a registered motor vehicle – 

(a)	record the registration number allotted to that motor vehicle; and

(b)	issue a registration label containing the registration number allotted to that motor vehicle; and

(c)	issue a further registration label each time the registration is renewed.

(2) A registration number issued under subsection (1) may be a combination of letters and numbers.

(3) Within 24 hours after the registration of a motor vehicle, the owner of that motor vehicle shall cause the registration label issued under subsection (1):

(a)	in the case of a motor vehicle fitted with a windscreen, to be affixed to the inner left hand corner of the windscreen; and

(b)	in the case of a motorcycle, in a waterproof holder securely attached in a visible position on the left hand side of the rear of the motorcycle.

(4) A person who drives or permits to be driven a registered motor vehicle in a public street without having a current registration label, clearly visible, attached to the vehicle in accordance with this Act commits an offence and is liable upon conviction to a fine of $100.

(5) It is not a defence to this section if the person driving or permitting to be driven a registered motor vehicle, was not aware that the registration label attached to the vehicle was not a current registration label in accordance with this Act.

7	Number Plates
(1) 	Subject to subsection (7), the number displayed on the plate issued by the Registrar shall be the same number issued under 6A (1) (a).

(2) The owner of a motor vehicle shall, within seven days of the motor vehicle being registered, firmly affix to the motor vehicle the number plates issued by the Registrar.

(3)	In the case of a motorcycle or trailer, it is sufficient for the purposes of this Act that one plate be securely affixed in an upright position on the rear of the vehicle.

(4) 	In the case of any other kind of motor vehicle, one plate must be displayed on the front of the motor vehicle and one plate must be displayed on the rear of the motor vehicle.

(5)	For all motor vehicles covered under this Act, it is a requirement that number plates be securely affixed in an upright position and displayed so that the unique identifying number on the plate is easily visible at all times:

(a) in the case of the front plate, from the front of the motor vehicle;
(b) in the case of the rear plate, from the rear of the motor vehicle.

(6)	A person seeking to affix to his vehicle a personalised number plate must:

(a) submit to the Registrar the proposed letters, numbers or combination of both, to be written on the number plate; and

(b) wait for the approval from the Registrar; and

(c) upon approval being granted, pay the prescribed fee under the Regulations.

(7) Where the figures or letters, or both, on a number-plate, including personalised numbers plates, are so defaced that they are not easily legible, the owner of the motor vehicle to which the number-plate is affixed shall notify the Registrar.

(8) The Registrar shall:

(a)	on receipt of a notification under subsection (6); and
(b)	on payment by the owner of the motor vehicle of the fee specified in the Regulations, 

supply to that owner a new number-plate or number-plates.
(9)	On receipt of a new number-plate or number-plates under subsection (8), the owner of the motor vehicle in respect of which the new number-plate or number-plates is supplied, shall forthwith surrender the defaced number-plate to the Registrar.

(10) Subject to subsection (6) and to any other Act, an owner of a motor vehicle shall not cause or permit a number-plate bearing a number other than the registered number of that motor vehicle to be affixed to that motor vehicle.

8	Form of number plates

(1)	A number-plate for a motor vehicle issued under this Act shall bear:

(a)	for the official vehicle of the President–the Republic of Nauru coat of arms on a white background; and

(b)	for the official vehicles of Ministers–the letters “GM” and two numerals in black, on a white background; and

(c)	for the official vehicles of members of the Diplomatic Corps–the letters “DC” followed by numerals, in black on a white background; and

(d)	for motor vehicles, including buses, owned by the Republic, including the Police Force, an instrumentality of the Republic or a statutory body:

(i)	in the case of a motor vehicle, other than a motor cycle, the letters RON and three numerals in a series commencing with “RON 001” in black on a white background;

(ii)	in the case of a motor cycle two letters and three numerals in a series commencing with “R 001” in black, on a white background;

(e)	for traders plates, taxi cabs and trailers the letters “TT”, followed by three numerals, in black, on a white background; and

(f)	for private or company bus plates, the letter “B” followed by four numerals and commencing with “B 001” in black, on a white background; and

(g)	privately owned motor vehicles, three letters followed by three numerals, in black, on a white background; and

(h)	for privately owned motor cycles, two letters followed by three numerals, in black, on a white background; and

(2)	Except as provided by this Act or under any other law, a person shall not drive a motor vehicle having on it a number-plate other than one prescribed under subsection (1).

(3)	The Registrar may, in his discretion, issue to motor vehicles owned by the Republic, including buses, owned by the Police Force, an instrumentality of the Republic or a statutory body, number plates of the type issued to privately owned motor vehicles under subsection (1)(g).

9	Alterations to motor vehicles

(1)	Where any alteration, affecting the accuracy of any particulars of the description in the certificate of registration or certificate of renewal of registration of a motor vehicle, is made to that motor vehicle, the owner shall forthwith forward the certificate to the Registrar for notation of the alteration on the certificate of registration.

(2)	The Registrar shall, after noting the alteration on the certificate of registration, return it to the owner.

10	Registration numbers not transferable

(1) The owner of a motor vehicle shall not transfer, or cause or permit to be transferred, a number issued for any motor vehicle to another motor vehicle. 

(2) Any person who drives a motor vehicle having upon it a number which was issued for another motor vehicle commits an offence and is liable upon conviction to a fine of $100.

11	Sale and disposal of motor vehicles

(1)	The owner of a motor vehicle who sells or disposes of the motor vehicle shall, within seven days after the sale or disposal:

(a)	give written notice to the Registrar, of the sale or disposal of the vehicle, and the full name and address of the person to whom the motor vehicle has been sold or disposed of; and

(b)	deposit with or forward to the Registrar the certificate of registration of the motor vehicle.

(2)	 Until the provisions of the last preceding subsection are complied with, the person in whose name the motor vehicle is registered shall remain liable as owner, in respect of the provisions of this Act, for any breach involving the said motor vehicle.

(3)	The person to whom the motor vehicle was sold or disposed of, shall, within seven days after the purchase or disposal, pay the prescribed transfer fee and apply to the Registrar to have the certificate of registration transferred to him.

12	Licences

Subject to sections 21L and 27, the Registrar may grant a licence to drive a motor vehicle of the class specified in the licence to any person who satisfies him that he is not less than eighteen years of age and is capable of driving a motor vehicle of that class with safety to the public, and the Registrar may, from time to time, renew any such licence.

12A	Application for licence to drive a motor vehicle

(1)	An application for a learner’s permit, a driving licence, or for the renewal of a driving licence or learner’s permit shall be made in Form 2 of the Schedule.

(2)	The completed application form shall be forwarded to the Registrar and must have attached to it any document required by any provision of this Act or its regulations.

(3)	The Registrar shall, within 7 working days, inform the applicant of the outcome of that application.

(4)	Unless sooner cancelled or suspended, a driving licence, or a renewal of a driving licence, remains in force for a minimum of 12 months and up to a maximum of 3 years.

(5)	Subject to the payment of fees in accordance with the Regulations, the Registrar may from time to time renew a driving licence for a period of 12 months and up to a maximum of 3 years.

(6)	The renewal of a driving licence takes effect on the day immediately following the day on which the licence, or the previous renewal of the licence, as the case may be, expired.

(7)	A driving licence is not transferable.

12B	Medical Examinations

The Registrar may request an applicant for the grant or renewal of a driving licence or the holder of a driving licence, obtain a certificate signed by a medical practitioner to the effect that in the opinion of the medical practitioner, having all proper regard to the safety of the public generally, the applicant or holder, is medically a fit and proper person to act as a driver of a motor vehicle.

12C	Foreign Licences

(1)	Notwithstanding this Act, a foreign driving licence shall, so long as it is in force, be deemed to be equivalent to, and be accepted in place of, a driving licence under this Act for the purpose of authorizing the holder to drive in Nauru any vehicle of the type or class of which the foreign licence applies–

(a)	on the conditions subject to which the foreign licence was issued; and

(b)	for a period of three months from the date of entry into Nauru of the holder.

(2) Subsection (1) applies only where the holder of a foreign driving licence–

(a)	usually resides outside Nauru and is temporarily in Nauru; and

(b)	has not been given notice by the Registrar under subsection (3) that his foreign licence is not acceptable in place of a Nauru driving licence; and

(c)	is not otherwise disqualified from obtaining or holding a driving licence in Nauru.

(3) The Registrar may at any time cancel the acceptance of a foreign driving licence by written notice in accordance with subsection (1) if:

(a)	in the opinion of the Registrar having regard to the safety of the public generally, it is not desirable that the person should be allowed to drive a motor vehicle; or

(b)	the person–

(i)	has, in the opinion of the Registrar any mental or physical disability that is likely to affect his efficiency in driving a motor vehicle, having regard to the safety of the public generally; or

(ii)	is, in the opinion of the Registrar, otherwise not fit to drive a motor vehicle; or

(iii)	has been convicted of an offence in connection with the driving of a motor vehicle.

(4) Any person holding a foreign licence commits an offence if they fail:

(a)	while driving a motor vehicle, to carry the licence; and
(b)	produce the licence on request by a member of the Police Force.

and is liable upon conviction to a fine of $100.

14	Learner’s permit 

(1)	The Registrar may grant a learner’s permit for any period not exceeding one year to any person who is not less than 18 years of age permitting him to learn to learn to drive a motor vehicle during such hours and in such locality as may be specified in the permit.

(2)	A person applying for a learner’s permit must, before being granted the permit, complete the theoretical test included in this Act in Form 3 of the Schedule and submit the completed test to the Registrar.

(3)	The Registrar may decide, in special circumstances, whether the test is to be administered verbally or in writing.

(4)	Nothing in this Act shall prevent a person to whom a learner’s permit has been granted from driving a motor vehicle upon any public highway while the permit remains in force, if while that person is learning to drive a motor vehicle, a licensed driver is occupying the seat next to the learner, and in that case the licensed driver shall be deemed to bethe driver of the vehicle.

(5)	A person to whom a learner’s permit has been granted shall at all times comply with the conditions of the permit.

(6)	The holder of a learner’s permit must not drive on a public street a motor vehicle other than a motor cycle unless:

(a)	the seat next to the learner is occupied:

(i)	by a person who holds a current driving licence; or

(ii)	by a member of the Police Force; or

(iii)	a person authorised by the Registrar for the testing of drivers, who is submitting the learner to a driving test for any of the purposes of the Act; and

(ii)	there is displayed conspicuously and so as to be clearly visible at the front and rear of the vehicle a sign, showing the letter “L” in red on a white background.

(7)	The holder of a learner’s permit must not drive on a public street a motor cycle:

(a)	if the motor cycle is being used for the carriage of any other person; or

(b)	unless there is displayed conspicuously and so as to be clearly visible at the rear of the motor cycle a sign, showing the letter “L” in red on a white background.

14A	Cancellation, suspension of, and refusal to grant or renew, licences

(1) The Registrar may at his discretion cancel or suspend by written notice a driving licence, for such period as he thinks fit, if:

(a)	in the opinion of the Registrar having regard to the safety of the public generally, it is not desirable that the person should be allowed to drive a motor vehicle; or

(b)	the person–

(i)	has, in the opinion of the Registrar any mental or physical disability that is likely to affect his efficiency in driving a motor vehicle, having regard to the safety of the public generally; or

(ii)	is, in the opinion of the Registrar, otherwise not fit to drive a motor vehicle; or

(iii)	has been convicted of an offence in connection with the driving of a motor vehicle.

(2)	The Registrar may at his discretion refuse to grant a licence or renewal of licence to any person who, in his opinion, is unfit to hold a licence.

15	Owner not to permit unlicensed person to drive motor vehicle

The owner of a motor vehicle shall, before permitting any person to drive the motor vehicle, require the licence of that person to drive a motor vehicle of the class to which that motor vehicle belongs to be produced as proof that that person is so licensed.

[4] 	Amendment of section 16
After section 16, insert the following

16B	Road Safety

(1)	A person must not drive or ride on a motorcycle on a road unless the person is wearing a safety helmet of an approved standard that is securely fastened.

(2)	A safety helmet must be free from damage, wear, tear, or modifications that may adversely affect its safety.

(3)	Any person who is contravention of subsection (1) commits an offence and is liable upon conviction to a fine of $100.

(4)	Any person who drives or rides a motorcycle and carries, in the back tray of the motorcycle, a child who is under the age of five, commits an offence and is liable upon conviction to a fine of $100.

[5]	Insertion of new Part IV (A) – Third Party Insurance

1	Third party insurance requirement

(1)	Subject to the provisions of this Part of this Act, it shall not be lawful for any person to use, or to cause or permit any other person to use, a motor vehicle on a road unless there is in relation to the vehicle, a policy of insurance in respect of third party risks complying with the requirements of this Part of this Act. 

(2)	Any person who acts in contravention of subsection (1) shall be guilty of an offence and liable upon conviction to a fine of $100 or to imprisonment for a term of three months, or to both such fine and imprisonment. 

(3)	The court by which a person is convicted of an offence under subsection (1) shall (unless the court finding exceptional mitigating circumstances thinks fit to order otherwise and without prejudice to the power of the court to order a longer period of suspension or disqualification) –

(a)	in every case order that person to be disqualified for holding or obtaining any motor vehicle driving licence under Part II of this Act for a period of twelve months from the date of the conviction; and 

(b)	in every case relating to the use of a public service vehicle, order the public service vehicle driver’s licence in respect of that vehicle to be suspended for a period of twelve months from the date of the conviction, and that no such licence in respect of that vehicle be issued during that period. 

(4)	Any person so convicted and in relation to whom such an order has been made shall produce any motor vehicle driver’s licence or public service vehicle licence which is held by him and to which that order relates to the court by which he was convicted within such time as the court may direct.

(5)	This section shall not apply to any motor vehicle or type of motor vehicle declared by order of the Minister to be exempted from the provisions of this Act.

2		Requirements in respect of policies

(1)	In order to comply with the provisions of this Act, a policy of insurance must be a policy which:

(a)	is issued by an approved insurance company; and

(b)	insures such person, persons or classes of persons as may be specified in the policy in respect of any liability which may be incurred by him or them in respect of the death of or bodily injury to any person caused by or arising out of the use of the vehicle.

(2) 	A policy of insurance under subsection (1) shall not be required to cover:

(a)	in the case of a passenger carried for hire or reward in a passenger vehicle, liability in respect of death or bodily injury related to being carried in or upon or entering or getting on to or alighting from the motor vehicle at the time of the occurrence of the event out of which the claims arise; or

(b)	in the case of persons carried by reason of of a contract of employment, liability in respect of the death of or bodily injury to persons being carried in or upon or entering or getting on to or alighting from the motor vehicle at the time of the occurrence of the event out of which the claims arise; or

(c)	in the case of a relative of the person using the vehicle at the time with the person so using the vehicle as a member of his family, liability in respect of the death of or injury; or

(d)	any contractual liability.

(3) 	Such policy shall not be requited to cover liability in excess of $4000 for any claim made by or in respect of any passenger in the motor vehicle to which the policy relates or in excess of $40,000 for all claims made by or in respect of such passengers.

(4) 	The amount specified shall be inclusive of all costs incidental to any claim or claims.

(5) 	Where any payment is made, whether or not with an admission of liability, by an approved insurance company under or in consequence of a policy issued under the provisions of this Act in respect of the death or bodily injury to any persons arising out of the use of the motor vehicle and the person who has so died or received bodily injury has, to the knowledge of the approved insurance company, received treatment at a hospital, whether as an in-patient or out-patient, in respect of the injury there shall be also paid by the approved insurance company to such hospital the expenses reasonably incurred by such hospital in giving such treatment after deducting any moneys actually received by such hospital in payment of a specific charge for such treatment:

Provided that the amount to be paid by the approved insurance company shall not exceed $500 for each person so treated as an in-patient and $100 for each person so treated as an out-patient.

(6)	An approved insurance company issuing a policy of insurance under this Act shall be liable to indemnify the persons or classes of person specified in the policy in respect of any liability which the policy purports to cover in the case of those persons or classes of person.

(7)	A policy shall be of no effect for the purposes of this Act unless and until there is delivered by the approved insurance company to the person by whom the policy is effected a certificate, in this Act referred to as a "certificate of insurance" containing such particulars of any conditions subject to which the policy is issued and of any other matters as may be prescribed.

3	Payments and insurance in respect of emergency treatment

(1)	Where medical or surgical treatment or examination is immediately required as a result of bodily injury (including fatalities) caused by, or arising out of, the use of a motor vehicle and the treatment or examination so required (in this Act referred to as an emergency treatment) is effected by a registered medical practitioner, the person who was using the vehicle at the time of the event out of which the bodily injury arose shall, on a claim being made in accordance with the provisions of this Act, pay to the practitioner, or, where emergency treatment is effected by more than one practitioner, to the practitioner by whom it is first effected:

(a)	a fee of $10.00 in respect of each person in whose case the emergency treatment is effected by him; and

(b)	a sum, in respect of any distance in excess of one mile which he must cover in order to proceed from the place where he is summoned to the place where the emergency treatment is carried out by him and to return to the first mentioned place, equal to fifty cents for every mile of that distance.

(2)	Where emergency treatment is first effected in a hospital the provisions of subsection (1) with respect to the payment of a fee shall, so far as applicable, have effect with the substitution of references to the hospital for references to a registered medical practitioner.

(3)	Where the event out of which it arises was caused by the wrongful act of another person, liability incurred under this Act by the person using a vehicle shall, be treated for the purposes of any claim to recover damage by reason of that wrongful act as damage sustained by the person using the vehicle.

(4)	In section 2(1)(b), the reference to liability in respect of death or bodily injury shall be deemed to include a reference to liability to make a payment under this section in respect of emergency treatment required as a result of bodily injury, and the provisos to that paragraph shall not have effect as regards liability to make a payment under this section.

4	Provisions as to claims and supplementary provisions as to, payments for emergency treatment

(1)	A police officer shall, if so requested by a person who alleges that he is entitled to claim a payment under section 3, furnish to that person any information at the disposal of the officer as to the identification marks of any motor vehicle which that person alleges to be a vehicle out of the use of which the bodily injury arose, and as to the identity and address of the person who was using the vehicle at the time out of which it arose.

(2)	A claim for a payment under section 3 shall be made at the time when the emergency treatment is effected, by oral request to the person who was using the vehicle and, if not so made, must be made by request in writing served on him within 7 days from the day on which the emergency treatment was effected:

Provided that failure to make such written request within such period aforesaid shall not be a bar to a claim under this section where the name or address of the person using the vehicle could not be ascertained by the claimant or executive officer of the hospital within such period by the use of reasonable diligence.

(3)	A request in writing must be made by the claimant, or in the case of a hospital, by an executive officer, and must state the name and address of the claimant, the circumstances in which the emergency treatment was effected, and that it was first effected by the claimant, or in the case of a hospital, in the hospital.

(4)	A request in writing may be served by delivering it to the person who was using the vehicle, or by sending it in a pre-paid registered letter addressed to him at his usual or last known address.

(5)	A sum payable under section 3 shall be recoverable as if it were a simple contract debt due from the person who was using the vehicle to the practitioner or the hospital.

(6)	A payment made under section 3 to a practitioner or hospital shall operate as a discharge, to the extent of the amount paid, of any liability of the person who was using the vehicle, or of any other person, to pay any sum in respect of the expenses or remuneration of the practitioner or hospital of or for effecting the emergency treatment.

(7)	A payment under section 3 shall not be deemed to be a payment by an approved insurance company for the purposes of section 2(2).

5	Certain conditions of policies to be of no effect

Any condition in a policy issued for the purposes of this Act, providing that no liability shall arise under the policy or that any liability so arising shall cease, in the event of some specified thing being done or omitted to be done after the happening of the event giving rise to a claim under the policy, shall be of no effect in connection with such liabilities as are required to be covered under this Act:

Providing that nothing in this Act shall be so construed as to render void any provision in a policy requiring the person insured to repay to the insurance company any sums which the insurance company may have become liable to pay under the policy and which have been applied to the satisfaction of the claims of the third parties.

6	Avoidance of restrictions on the scope of policies covering third party risks

Where a certificate of insurance has been delivered under the provisions of section 2(7) of this Act to the person by whom a policy has been effected, so much of the policy as purports to restrict the insurance of the person insured thereby in respect of any of the following matters:

(a)	The age of physical or mental condition of persons driving the motor vehicle; or

(b)	The condition of the motor vehicle; or

(c)	The number of persons that the motor vehicle carries; or

(d)	The weight or physical characteristics of the goods that the motor vehicle carries; or

(e)	The times at which or the areas within which the motor vehicle is used; or

(f)	The horse power or value of the motor vehicle; or

(g)	The carrying on the motor vehicle of any particular apparatus; or

(h)	The carrying on the motor vehicle of any particular means of identification other than any means of identification required to be carried under the provisions of the Act shall, in respect of such liabilities as are required to be covered under this Act, to be of no effect:

Provided that nothing in this section shall require an approved insurance company to pay any sum in respect of the liability of any person otherwise than in or towards the discharge of that liability and any sum paid by an approved insurance company in or towards the discharge of the liability of any person which is covered by the policy by virtue only of this section shall be recoverable by the approved insurance company from that person.

7	Duty of insurance company to satisfy judgments against persons insured in respect of third party risks

(1)	If, after a certificate of insurance has been delivered under the provisions of section 2(7) of this Act to the person by whom a policy has been effected, judgment in respect of any such liability as is required to be covered by a policy under the provisions of section 2 (1)(b), being a liability covered by the terms of the policy, is obtained against any person insured by the policy, then, notwithstanding that the insurance company may be entitled to avoid or cancel or may have avoided or cancelled the policy, the insurance company shall, subject to the provisions of this section, pay to the persons entitled to the benefit of such judgment any sum payable in respect of the liability, including any amount payable in respect of costs and any sum payable by virtue of any written law in respect of interest on that sum.

(2)	No sum shall be payable by an approved insurance company under the provisions of subsection (1):

(a)	in respect of any judgment unless before, or within 7 days after the commencement of the proceedings in which the judgment was given, the insurance company has notice of the bringing of the proceedings; or

(b)	in respect of any judgment so long as execution is stayed pending an appeal; or

(c)	in connection with any liability if, before the happening of the event which was the cause of the death or bodily injury giving rise to the liability, the policy was cancelled by mutual consent or by virtue of any provisions contained therein and either-

i.	before the happening of such event, the certificate of insurance was surrendered to the insurance company or the person to whom the certificate of insurance was delivered made a statutory declaration stating that the certificate of insurance had been lost or destroyed and so could not be surrendered; or

ii.	after the happening of such event but before the expiration of 14 days from the taking effect of the cancellation of the policy, the certificate of insurance was surrendered to the insurance company or the person to whom the certificate of insurance was delivered made a statutory declaration that the certificate of insurance had been lost or destroyed and so could not be surrendered; or

iii.	either before or after the happening of the event but within a period of 14 days from the taking effect of the cancellation of the policy, the insurance company had commenced proceedings under this Act in respect of the failure to surrender the certificate of insurance.

(3)	No sum shall be payable by an approved insurance company under the provisions of this Act if, in an action commenced before or within 3 months after the commencement of the proceedings in which the judgment was given, the insurance company has obtained a declaration that, apart from any provision contained in the policy, the insurance company is entitled to avoid it on the ground that it was obtained by the non-disclosure of a material fact or by a representation of fact which was false in a material particular or if the company has avoided the policy on the ground that it was entitled to do so apart from any provision contained in it:

Provided that an insurance company which has obtained such a declaration in an action shall not thereby be entitled to the benefit of the provisions of this subsection in respect of any judgment obtained in any proceedings commenced before the commencement of that action unless, before or within 7 days after the commencement of that action, it has given notice thereof to the person who is plaintiff in the action under the policy specifying the non-disclosure or false representation on which it proposes to rely and that it intends to seek a declaration and any person to whom notice of such action is given may, if he desires, be made a party thereto.

(4)	If the amount which an approved insurance company, under the provisions of this section, becomes liable to pay in respect of the liability of a person insured by a policy exceeds the amount for which it would, apart from the provisions of this section, be liable to pay under the policy in respect of that liability, it shall be entitled to recover the excess from that person.

(5)	In this section:

"liability covered by, the terms of the policy" means a liability which is covered by the policy or which would be so covered were it not that the insurance company is entitled to avoid or cancel or has avoided or cancelled the policy; and

"material" means of such a nature as to influence the judgment of a prudent insurer in determining whether he will accept the risk and if so at what premium and on what conditions.

8	Rights of third parties against insurance companies

(1)	Where, under a policy issued for the purposes of this Act, a person, hereinafter referred to as "the insured", is insured against liabilities to third parties which he may incur, then:

(a) in the event of the insured becoming bankrupt or making a composition or arrangement with his creditors; or

(b) in the event of the insured being a company and a winding-up order being made or a resolution for the voluntary winding-up of the company being passed in respect of the company or a receiver or manager of the company's business or undertaking being duly appointed or in the event of possession being taken by or on behalf of the holders of any debentures secured by a floating charge, of any property comprised in or subject to the charge,

if, either before or after either event, any such liability is incurred by the insured, his rights against the insurance company under the policy in respect of that liability shall, notwithstanding anything in any written law to the contrary contained, be transferred to and vest in the third party to whom the liability was so incurred.

(2)	Where, under the provisions of any law, an order is made for the administration in bankruptcy of the estate of a deceased debtor, then, if any debt which may be proved in bankruptcy is owing by the deceased in respect of a liability against which he was insured under a policy issued for the purposes of this Act as being a liability to a third party, the rights of the deceased debtor against insurance company under the policy shall, notwithstanding anything in any law to the contrary contained, be transferred to and vest in the person to whom the debt is owed.

(3)	Any condition in a policy issued for the purposes of this Act purporting directly or indirectly to avoid the policy or to alter the rights of the parties upon the happening of any of the events specified in subsections (1) and (2) shall be of no effect.

(4)	Upon a transfer of rights under subsection (1) or subsection (2), the insurance company shall, subject to the provisions of section 10, be under the same liability to the third party as it would have been under the insured save that:

(a) if the liability of the insurance company to the insured exceeds the liability of the insured to the third party, nothing in this Act shall affect the rights of the insured against the insurance company in respect of such excess; and

(b) if the liability of the insurance company to the insured is less than the liability of the insured to the third party, nothing in this Act shall affect the rights of the third party against the insured in respect of the balance.

(5)	This section and sections 10 and 11 shall not apply where a company is wound up voluntarily merely for the purposes of reconstruction or of amalgamation with another company.

(6)	For the purposes of this section and sections 10 and 11, the expression “liabilities to third parties”, in relation to a person insured under a policy of insurance, shall not include any liability of that person in the capacity of insurer under some other policy of insurance.

9	Duty to give information to third parties

(1)	Any person against whom a claim is made in respect of any liability required to be covered by a policy under the provisions of this Act shall, on demand by or on behalf of the person making such a claim, state whether or not he was insured in respect of that liability by any policy having effect for the purposes of this Act or would have been so insured if the insurance company had not cancelled or avoided the policy and, if he were or would have been so insured, give such particulars with regard to that policy as were specified in the certificate of insurance issued to him.

(2)	In the event of any person becoming bankrupt or making a composition or arrangement with his creditors or in the event of an order being made under the provisions of any law relating to bankruptcy in respect of the estate of any person or in case of a winding-up order being made or a resolution for a voluntary winding-up being passed with respect to any company or of a receiver or manager of the company's business or undertaking being duly appointed or of possession being taken, by or on behalf of the holders of any debentures secured by a floating charge, of any property comprised in or subject to the charge, it shall be the duty of the bankrupt debtor, personal representative of the deceased debtor and, as the case may be, of the official assignee, trustee, liquidator, receiver, manager, or person in possession of the property to give, at the request of any person claiming in respect of a liability to him, such information as may reasonably be required to ascertain whether any rights have been transferred to and vested in him under the provisions of this Act, and for the purpose of enforcing such rights, and any contract of insurance, in so far as it purports either directly or indirectly to avoid the contract or to alter the rights of the parties upon the giving of any such information or otherwise to prohibit, prevent or limit the giving of such information, shall be of no effect.

(3)	If the information given to any person in pursuance of the provisions of subsection (2) discloses reasonable grounds of belief that rights have or may have been transferred to him under the provisions of this Act against any particular insurance company, that insurance company shall be subject to the same duty as is imposed by the provisions of subsection (2) on the persons therein mentioned.

(4)	The duty imposed by this section to give information shall include a duty to allow all contracts of insurance, receipts for premiums and other relevant documents in the possession, power or control of the person on whom the duty is so imposed to be inspected and copies thereof to be taken.

(5)	Any person who, without reasonable excuse, the onus of proving which shall be upon him, fails to comply with the provisions of this Act or who wilfully or negligently makes any false or misleading statement in reply to a demand for information, is guilty of an offence.

10	Certain settlements between insurer and insured to be of no effect

Where a person who is insured under a policy issued for the purposes of this Act has become bankrupt or where such insured person being a company a winding-up order has been made or a resolution for a voluntary winding-up has been passed with respect to that company no agreement made between the insurance company and the insured after liability has been incurred to a third party and after the commencement of the bankruptcy or the winding-up, as the case may be, nor any waiver, assignment or other disposition made by or payment made to the insured after such commencement shall be effective to defeat or affect the rights transferred to or vested in the third party under the provisions of this Act and such rights shall be the same as if no such agreement, waiver, assignment, disposition or payment has been made.
11	Bankruptcy, etc, of insured persons not to affect certain claims

(1)	Where, under the provisions of this Act a certificate of insurance has been delivered to the person by whom a policy has been effected, the happening in relation to any person insured by the policy of any of the events specified in subsection (1) or subsection (2) of section 8, notwithstanding anything in this Act contained, shall not affect any such liability of that person as is required to be covered by a policy under the provisions of this Act but nothing in this section shall affect any rights against the insurer conferred under the provisions of sections 9, 10 and 11 on the person by whom the liability was incurred.

(2)	A policy issued under the provisions of this Act shall remain in force and available for third parties notwithstanding the death of any person insured under such policy as if such insured person were still alive.

12	Owner to give insurance company notice of all accidents affecting motor vehicles and of consequent actions

(1)	On the happening of any accident affecting a motor vehicle and resulting in the death of or personal injury to any person, it shall be the duty of the owner, immediately after such accident, or, if the owner was not using the motor vehicle at the time of the accident, it shall be the duty of the person who was so using the vehicle, immediately after the accident, and of the owner, as soon as he first becomes aware of the accident, to notify the insurance company of the fact of the accident, with particulars as to the date, nature, and circumstances, and to give all such other information and to take all such steps as the insurance company may reasonably require in relation to, whether or not any claims have actually been made against the owner or such other person on account of such accident.

(2) 	Notice of every claim or action brought against the owner or made or brought against any other person who was using the vehicle at the time on account of any such accident shall be immediately given to the insurance company with such particulars as such company may require, in the former case, by the owner and, in the latter case, by such other person and, where he has knowledge of clam or action, also by the owner.

(3) 	Neither the owner nor any other person shall, without the written consent of the insurance company, enter upon or incur the expense of litigation as to any matter or thing in respect of which he is indemnified by a contract of insurance under this Act, nor shall he, without such consent, make any offer, promise, payment, or settlement, or any admission of liability as to any such matter.

(4) 	If the owner or such other person fails to give any notice or otherwise fails to comply with the requirements of this section in respect of any matter, the insurance company shall be entitled to recover from him as a debt due to it an amount, equal to the total amount including costs, paid by the insurance company in respect of any claim in relation to such matter.

13	Insurance company may settle claims

An approved insurance company party to a contract of insurance under this Act may, for the purposes of such contract, undertake the settlement of any claim against the owner or any other person indemnified by a contract of insurance under this Act and may take over, during such period as it thinks proper, the conduct and control on behalf of the owner or such other person of any proceedings taken or had to enforce any such claim or for the settlement of any question arising with reference thereto, and may defend or conduct such proceedings in the name of the owner or such other person and on his behalf and shall indemnify the owner or such other person against all costs and expenses of and incidental to any such proceedings while the company retains the conduct and control thereof. The owner and such other person shall sign all such warrants and authorities as the company may require for the purpose of enabling the company to have the conduct and control of any such proceedings.

14	Proceedings may be stayed on refusal or neglect to allow medical examination

In any case where:

(a)	an action has been brought in any court by any person for the recovered of damages in respect of bodily injury caused by or arising out of the use of a motor vehicle against the owner or driver of such vehicle; and

(b)	the court is satisfied that there has (whether before after action brought) been a refusal or neglect without reasonable cause to allow a medical examination of such person after a request on reasonable terms by such owner or driver that such person should be examined, for the purpose of the ascertainment of the nature and extent of the bodily injury sustained by such person, by a registered medical practitioner nominated by such owner or driver (as the case may be),

the court of judge may make an order on such terms as seem proper that all further proceedings in such action shall be stayed, and the same shall be stayed accordingly.

15	Surrender of certificate of insurance on cancellation of policy

Where a certificate of insurance has been delivered under the provisions of this Act to the person by whom a policy has been effected and the policy is cancelled by mutual consent or by virtue of any provision in the policy, the person to whom such certificate was delivered shall, within 7 days from the taking effect of the cancellation of such policy, surrender such certificate to the insurance company or, if such certificate has been lost or destroyed, make a statutory declaration to that effect and any person contravening the provisions of this Act is guilty of an offence.

16	Certificates to be produced

(1)	Any person driving a motor vehicle on a road shall, on being so required by a police officer, give his name and address and the name and address of the owner of the motor vehicle and produce the certificate of insurance and any person contravening the provisions of this section shall be guilty of an offence:

Provided that if such person, within 5 days after the date on which the production of the certificate was so required, produces the certificate at such police station as may have been specified by him at the time its production was required, he shall not be convicted of an offence under this section by reason only of failure to produce the certificate to the police officer.

(2)	In any case where, owing to the presence of a motor vehicle on a road, and an accident occurs involving bodily injury to any person, the driver of the motor vehicle shall produce the certificate of insurance to a police officer or to any person having reasonable grounds for requiring its production and, if any such driver, for any reason, fails so to produce the certificate of insurance, he shall, as soon as possible, and in any case within 5 days of the occurrence, report the accident and produce the certificate of insurance to the police station nearest to the scene of the accident or to the nearest administrative officer and any person contravening the provisions of this subsection.

(3)	In this section "to produce the certificate of insurance" means to produce for examination the relevant certificate of insurance or such other evidence as may be prescribed that the motor vehicle was not being driven in contravention of the provisions of this Act.

17	Duty of owner

An owner of a motor vehicle shall give such information as may be required by a police officer for the purpose of determining whether the motor vehicle was or was not being driven in contravention of the provisions of this Act on any occasion on which the driver was required to produce the certificate and any owner failing to do so shall be guilty of an offence against this Act.

18	False statements and falsification

(1)	If any person, for the purpose of obtaining an insurance policy or a certificate of insurance under the provisions of this Act, makes any statement either oral or written which is false or misleading or withholds any material information, such person shall, unless he proves to the satisfaction of the court that he acted without any intent to deceive, be guilty of an offence against this Act and be liable, on conviction, to a fine of $400 or to imprisonment for 2 years or to both such fire and imprisonment.

(2)	Any person who with intent to deceive:

(a)	Forges, alters, defaces or mutilates any certificate of insurance or any other certificate or document issued under this Act; or

(b)	Uses or allows to be used by any other person any forged, altered, defaced or mutilated certificate of insurance or document issued under this Act; or

(c)	Lends to or borrows from any other person a certificate of insurance or any other certificate or document issued under the provisions of this Act; or

(d)	Makes or has in his possession any document so closely resembling any certificate or documents issued under the provisions of this Act as to be calculated to deceive; or

(e)	Issues any certificate of insurance or other certificate or document to be issued under the provisions of this Act,

shall be guilty of an offence and liable, an conviction to a fine of $400 or to imprisonment for 2 years or to both such fine and imprisonment.

(3)	If any police officer has reasonable cause to believe that any certificate of insurance or any other certificate or document produced to him in pursuance of the provisions of this Act by the driver or owner of a motor vehicle is a document in relation to which an offence under this section has been committed, he may seize the document and, when any such document is so seized, the driver and the owner of such motor vehicle or either of them shall, if neither of them has been charged with an offence under the provisions of this section be summoned before a magistrate to account for the possession of or the presence of the motor vehicle of the said document and the magistrate may make such order respecting the disposal of the document and award such casts as he may deem just.

19	Reference to certificate deemed to be reference to certificates where more than one issued

In this Act references to a certificate of insurance in any provisions relating to the surrender or loss or destruction of a certificate shall, in relation to policies under which more than one certificate is issued, be construed as reference to all or any such certificates and shall, where any copy of a certificate has been issued, be construed as including a reference to such copy.

20	Passengers for hire not to contract themselves out of benefits conferred by this Act

In any action brought against the owner of a motor vehicle or any other person indemnified under a policy of insurance under or for the purposes of this Act in respect of an accident causing the death of or badly injury to any person being, at the time of the accident, a passenger far hire in such vehicle, it shall not be a defence that the contract of carriage had excluded or modified the liability of the owner or of any other person to pay damages in respect of accidents due to the negligence or wilful default of the owner, his servants, or agents.

21	Prohibition against soliciting for authority to make claims and commence actions, etc

(1)	 No person shall directly or indirectly for personal gain:

(a)	solicit instructions or authority to act on behalf of any other person in respect of the making or commencement of any claim or action for damages for the death of or bodily injury to any person arising out of the use of a motor vehicle or in respect of the negotiation, compromise or settlement of such claim or, action; or

(b)	on behalf of any other person make or commence or cause to be made or commenced any claim or action far such damages aforesaid or negotiate, settle or compromise any such claim or action when made or commenced;

and any person contravening the provisions of this subsection shall be guilty of an offence.

(2)	Subsection (1) (b) shall not apply to any barrister and solicitor properly acting in the course of his profession.

(3) Any agreement to pay to any person who contravenes any of the provisions of subsection (1) any money for work done for services rendered in respect of the matters referred to in such subsection shall be void and any money so paid shall be recoverable by action brought in any court of competent jurisdiction by the person who has paid it.

22	Applicant for vehicle licence to produce evidence of necessary insurance

Notwithstanding the provisions of any other law for the time being in force, a person applying for a vehicle licence or a renewal thereof may be required to produce evidence to the satisfaction of the licensing authority that, on the date when the licence comes into operation, there will be in force the necessary policy of insurance in relation to the use of the vehicle by the applicant or by other persons on his order or with his permission.

23	Appeal against refusal to issue or against cancellation of policy

(1)	Where an approved insurance company refuses to issue to any person a policy of insurance covering such liabilities as are required to be covered by this Act or gives notice of intention to cancel such a policy, the person applying for the policy, or the policy-holder, as the case may be, may appeal within 30 days of the date upon which he received notice of such refusal or intention to a resident magistrate and, on any such appeal, the court may dismiss the appeal or may order that such a policy be issued by the company upon payment of a premium of the amount specified in the order, or that the notice of intended cancellation of the policy be withdrawn upon payment of such additional amount, if any, as may be specified in the order by way of additional premium and the court may make such order as to costs as it thinks fit.

(2)	Where an order is made by a court under the provisions of subsection (1) directing an insurance company to issue a policy of insurance or to cancel a notification of cancellation, that company shall act accordingly.

24	General Penalty

Any person who is guilty of an offence against this Act for which no special penalty is provided shall, on conviction, be liable to a fine of $100.

[6]	Amendment of section 42 (2)

Omit

‘of one hundred dollars’

Substitute

‘of two hundred dollars’

[7]	Amendment of section 44 (2) (d)

Omit

‘not exceeding $100’

[8]		Insert Schedule 2

8.1		Form 1

8.2		Form 2