Document ID: chunk:federal_register_of_legislation:F2021C00206:reg:16:p1
Version: federal_register_of_legislation:F2021C00206
Segment Type: reg
Provision Reference: reg 16 (pt 1/4)
Character Range: 18003–20620

16  Prescribed events
 (1) The following, except in so far as they are excluded by subsection (2), are declared to be prescribed events in relation to a contract referred to in section 15:
 (a) the occurrence within Australia of the destruction or, theft of, or accidental damage to, the motor vehicle specified in the contract;
 (b) the occurrence within Australia of accidental damage to, or the theft of:
 (i) a tool or appliance that is standard equipment for the motor vehicle specified in the contract; or
 (ii) an accessory that forms part of that motor vehicle;
  at a time when the tool, appliance or accessory is attached to or within the motor vehicle;
 (c) the insured or a person:
 (i) who, with the express or implied consent of the insured, was driving, using or in charge of the motor vehicle at the relevant time; or
 (ii) who, at the relevant time, was an authorised passenger in the motor vehicle or, if the motor vehicle is a motor cycle, who, at the relevant time, was an authorised passenger on the motor vehicle;
  incurring a liability (otherwise than under a contract) to pay compensation or damages in respect of loss of, or damage occurring to, property (not being the motor vehicle or a tool, appliance or accessory as mentioned in paragraph (b)) in Australia, being loss or damage that occurs as a result of the use of:
 (iii) the motor vehicle; or
 (iv) a trailer or caravan attached to the motor vehicle;
 (d) a person who, at the relevant time, was an employer, principal or partner of the insured, incurring a liability (otherwise than under a contract) as employer, principal or partner, respectively, to pay compensation or damages in respect of loss of, or damage occurring to, property (not being the motor vehicle or a tool, appliance or accessory as mentioned in paragraph (b)) if:
 (i) the loss or damage occurred in Australia; and
 (ii) the loss or damage occurred as the result of the use of the motor vehicle or a trailer or caravan attached to the motor vehicle.
 (2) The following are excluded:
 (a) depreciation;
 (b) wear and tear, rust or corrosion;
 (c) structural failure;
 (d) mechanical or electrical breakdown or failure;
 (e) the tyres of the motor vehicle being damaged by application of brakes or by road punctures, cuts or bursting;
 (f) destruction or damage, or the incurring of a liability as mentioned in paragraph (1)(c) or (d), at a time when:
 (i) the motor vehicle is being used in, or tested in preparation for, racing, pacemaking, a reliability trial or a speed or hill‑climbing test by the insured or by some other person with the express or implied