Introduction
AIMS* was recently approached by a network broker seeking clarification on whether a ride on mower required motor registration and compulsory third party cover (CTP), or if the legal liability section of a domestic policy provided protection for third party bodily injury. While this query is related to third party bodily injury, the same principle can apply to third party property damage and therefore, this whitepaper will also touch on this.
Third party bodily injury
AIMS discovered that there is no “one” answer to this question as each state has varying motor vehicle or transport laws that require conditional registration for the ride on mower or specifically exclude this type of vehicle enabling the domestic legal liability to respond (assuming the insured is legally liable). In addition, two states (Victoria and Western Australia) have a lack of clarity in their transport laws, which makes it difficult to provide a definitive response.
Before AIMS summarises each state’s transport laws, the parameters for domestic insurance cover (most policies have an additional section for the insureds legal liability for third party bodily injury and/or property damage) needs to be examined. All domestic legal liability policies contain an exclusion, which generally states that legal liability cover is provided for motor vehicle liability arising from the use of any vehicle, which is a type that is not required to be registered by law. In other words, if a vehicle is required to be registered then the insured must do so and arrange CTP cover. If the vehicle is not required to be registered, then the domestic legal liability section should respond.
The other aspects of a legal liability section of a domestic policy that need to be considered before a definitive answer on the key question above are:
1. Legal liability cover must be Australia wide (this is generally the case).
2. The definition of contents must include ride on mowers.
In this paper, we are assuming that points 1 and 2 are affirmative and the only issue is the consideration, if a vehicle is eligible for registration, CTP cover must be purchased. If the vehicle does not require registration, the domestic legal liability section should respond.
New South Wales
New South Wales transport law is straight forward in that lawn mowers weighing less than 250 kg used for mowing lawns, are exempt from registration. Therefore, the owner should expect their domestic legal liability policy to respond.
Victoria
Victorian transport laws are more opaque. The definition of a motor vehicle does not include “a golf cart, golf buggy or ride on mower that is mainly used outside the road system and not travelling for more than 2 km at one time when on a highway in the one direction and is being used for the purpose for which it is manufactured”. The definition of a highway includes “a footpath, nature strip or an area that divides a road”. In other words, it is part of the road system. Therefore, by strict definition, a ride on mower operating on a nature strip adjoining the owner’s premises, and also adjoining the road system, requires registration.
In preparing this whitepaper, AIMS sought a written answer from the Victorian Transport Department, however, this was not forthcoming. We were advised verbally that ride on mowers did not require registration. In the absence of a written response, AIMS is reluctant to provide definitive advice. AIMS’ recommendation is for each owner to contact the department and then discuss this with their domestic insurer to ensure that either the CTP or domestic legal liability insurer provides cover.
Queensland
Queensland’s Department of Transport’s definition of roads includes footpaths and nature strips; ride on mowers are classified as vehicles. Therefore, conditional registration is required, and a domestic legal liability policy section will not respond.
Western Australia
AIMS’ research has produced varying opinions on the requirement for conditional registration.
The Western Australia Department of Transport states that off road vehicles are prohibited from crossing or travelling along public roads unless they have a conditional registration. There is reference to motorized wheelchairs (speeds less than 10 km’s per hour), which do not require registration but no specific reference to ride on mowers.
Enquiries with insurers vary, therefore AIMS is unable to offer definitive advice. Our recommendation is that the owner should contact the transport department to seek their response; then discuss this with their domestic insurer to ensure that either the CTP or domestic legal liability policy provides cover.
South Australia
South Australian transport law states that a person may drive a vehicle without registration, and CTP insurance in specified situations – this includes “moving a self-propelled lawn mower to or from a place where it is used to mow”. However, to gain an exemption in this situation, the owner or driver of that vehicle must have public liability insurance that indemnifies that person for losses up to $5 million for death or bodily injury, arising out of the vehicle’s use on the road.
Unlike New South Wales and Queensland transport laws, there is no specific reference to ride on mowers – other than that referenced above. This refers to “moving a self-propelled vehicle to or from a place where it is used to mow” and there is no reference to a nature strip and if this is classified as part of a road. However, the reference to the public liability exemption and the language using a road, leads AIMS to believe that registration is not required. Although, for the sake of completeness, AIMS recommends that the owner contacts the transport department to seek clarification on the law.
Tasmania
Tasmanian transport law is straight forward in that vehicles including “a self-propelled lawn or grass mower constructed and used solely for mowing lawn or grass that is not capable of travelling at a speed of more than 10 km’s an hour” does not require registration. Therefore, the owner should expect their domestic legal liability policy to respond accordingly.
Northern Territory
Northern Territory law states that any open places, such as footpaths, are classified as a public place. A motor vehicle is defined as “any vehicle propelled by steam, gas, oil or electricity, or by any means other than human or animal power”. Therefore, ride on mowers fall within this definition and as such, owners of ride on mowers must apply for registration and CTP cover.
Australian Capital Territory
The Australian Capital Territory transport law states that registration provisions do not apply to “a registered vehicle weighing no more than 250 kg when unladen, and that is built or used only for cutting grass”. Therefore, an insured should expect their domestic legal liability policy to respond.
As summarised, each state has varying legislation. Some states have clear definitions that make it easier to select the correct legal or private insurance option. However, some state transport laws do not provide clarity and in these situations, AIMS recommends:
Katherine (08) 7919 7019
2/46 Chardon St