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Indemnity provided by the transport accident charge

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This needs to be read in conjunction with the Claims for Common Law Damages policy.

What is the transport accident charge?

The transport accident charge is an insurance fee that appears on the 'Registration Renewal Notice' VicRoads sends out. When the transport accident charge is paid the owner/driver of a Victorian registered vehicle is considered 'insured' by the TAC. This Compulsory Third Party (CTP) insurance covers owners of Victorian motor vehicles for the injury or death caused by their vehicle to another person.

In order to be indemnified by the TAC in a common law action the owner of the vehicle must ensure the registration fee (which includes the transport accident charge) has been paid prior to the expiration date each year. 

Transport Accident Act 1986 reference: s.94(1) and s.109.

What is a registered vehicle?

Under the Transport Accident Act (1986), a "registered motor vehicle" is a vehicle:

  • which is normally garaged in Victoria, or
  • is registered under the Road Safety Act (1986), or
  • does not require to be registered under the Road Safety Act (1986) because it is exempt from having to be registered in Victoria, eg. vehicles arriving in Victoria from overseas.  
     
    Transport Accident Act 1986 legislative ref: s.3, S301, Regulation 301, Road Safety (Vehicle) Regulations 1999.

What is an unindemnified vehicle?

A vehicle is unindemnified if it is a Victorian vehicle and no Transport accident charge has been paid to cover the date of the transport accident. The Transport accident charge must be paid prior to the expiry date on the Registration Renewal Notice or within 28 calendar days of the expiry date to be considered 'insured' for common law purposes. 

Transport Accident Act 1986 reference: s.3, s.94(1) and s.109(4)

What if the vehicle is involved in an accident and the transport accident charge has not been paid by the expiry date?

If the transport accident charge has not been paid by the expiry date and the vehicle is involved in an accident, the TAC provides a 28 day grace period (this period begins from the expiry date) in which to make a payment. If a payment is made within 28 calendar days of the expiry date the vehicle is considered 'insured' by the TAC and the owner is protected from being sued for injury or death caused by their vehicle.  

Transport Accident Act 1986 reference: s.109(4)

What if the vehicle cannot be re-registered because it is written-off in the accident?

If the vehicle cannot be re-registered because it is written-off in the accident, the transport accident charge must still be paid to VicRoads by the expiry date or within the TAC's 28 day grace period in order for the owner to be protected from personal injury liability. For further information in relation to the transport accident charge call the TAC on 1300 654 329. Also refer to the VicRoads website for information on registration of vehicles in Victoria. 

Transport Accident Act 1986 reference: s.94(1) and s.109.

Does an overseas visitor who brings their vehicle to Victoria from overseas have to pay the Transport accident charge?

Depending on how long the overseas visitor intends to stay in Victoria, their overseas vehicle is exempt from the requirement of having to be registered under the Road Safety Act (1986). However there is a requirement under the Road Safety Act (1986) that the owner pays the transport accident charge in order to be covered by the TAC in the event an injury or death is caused by their vehicle to somebody else. Refer to 'Visiting overseas vehicles' on the VicRoads website

Regulation 301, Road Safety (Vehicle) Regulations 1999.