Blog Question: My Client has a Number of Unregistered Vehicles. Is that wise? #motorinsurance
I received this question from a broker, John [Surname and email provided] in Queensland. He also asked me to help him explain the different types of motor insurance available. I answer the first part about unregistered vehicles today and come back to the various covers tomorrow.
As I say, I start with the important one, Compulsory Third Party (“CTP”), which provides coverage for personal injury to a person where the driver of the vehicle is deemed to have breached their duty of care to them, whether they be a passenger in or on the vehicle, another road user, pedestrian or anyone else.
CTP is a Statutory Class of Insurance in most countries including Australia and New Zealand. This means that it is insurance that the insured is required to buy under a country, state, or federal law. Hence the term “Compulsory” in the title.
Where a vehicle is not registered but ought to be registered, such as when it is being driven on the road, or in a public area such as a car park, then motor and public liability policies specifically exclude a claim from a third party (or person acting for a third party including their estate) who is claiming injury or death.
Here is an example of a typical exclusion found in a Public Liability (Broadform Liability) policy.
And similarly under a Commercial Motor Policy.
The rules surrounding when a vehicle ought to be registered is like so many laws and regulations in this country, different in each state. I attach the relevant page from the Queensland Government Department of Transport and Main Roads which will assist you in your understanding. http://www.tmr.qld.gov.au/Registration/Conditional-registration/Conditional-registration-explained.aspx
Where the vehicle is being used as a tool of trade, such as a crane or back hoe, different rules apply again. If you need me to explain this, please let me know.
The risk management rule here is that if in doubt obtain a conditional registration.