Having a licence to operate a vehicle is a well known requirement. Some might not be aware of this requirement in respect of pleasure craft in particular jet skis.
The enclosed Carter Newell legal update contains discussion of an interesting case authority in respect of personal injuries litigation arising from jet ski usage and in particular unlicensed drivers.
A brief summary of the judgment: The precedent holds that failure to possess a jet ski licence, despite being a breach of policy terms and conditions, but which does not cause the accident occurring , does not give the Insurer right to deny coverage. This is true of Australian law because of protections in section 54 of the Insurance Contracts Act (ICA).
It is conceivable that in the family dynamic, the dominant driver would be licenced with other family members not being licenced. Without ICA s 54, an Insurer would be able to decline the claim. In other circumstances, where the act of not being licenced, say from lack of instructed practical knowledge does contribute to the occurrence of the claim, the Insurer will almost certainly be entitled to deny indemnity to the policy holder regardless of s 54 of ICA.
We take this opportunity to remind clients that even a family member or other acquaintance that only operates a vehicle for a minimal amount of time, exposes themselves to the prospect of being uninsured because of a technicality.
Given this case involve the unfortunate amputation below the knee of the claimant’s leg, it shows that jet ski injuries can be severe such that the potential for significant uninsured losses is far from trivial.
Below is a link to Carter Newell’s case discussion and judgment itself on AUSTLII should you wish to read more.
Kind regards, |
Katherine (08) 7919 7019
2/46 Chardon St