LAWS OF BRUNEI

CHAPTER 90
MOTOR VEHICLES INSURANCE
(THIRD PARTY RISKS)

No. 1 of 1950
Chapter 90 of 1951
Amended by
Enactment No. 16/1953
E 7 of 1981
1984 Edition, Chapter 90
Amended by
S 28/1998
S 48/2008
S 103/2010

REVISED EDITION 2014

B.L.R.O. 3/2014
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LAWS OF BRUNEI

REVISED EDITION 2014

CHAPTER 90
MOTOR VEHICLES INSURANCE
(THIRD PARTY RISKS)
ARRANGEMENT OF SECTIONS

Section

1. Citation.
2. Interpretation.
3. Users of motor vehicles to be insured against third party risks.
4. Requirements in respect of policies.
5. Requirements in respect of securities.
6. Certain conditions to policies or securities to be of no effect.
7. Avoidance of restrictions on scope of policies covering third party
risks.
8. Applicants for motor vehicle furnish licences to evidence of
insurance.
9. Duty of insurers to satisfy judgments against persons insured in
respect of third party risks.
10. Rights of third parties against insurers.
11. Duty to give necessary information to third parties.
12. Settlement between insurers and insured persons.

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13. Bankruptcy, insured persons not to affect certain claims by third

parties.
14. Further rights of third parties against insurers.
15. Duty to surrender certificate on cancellation of policy.
16. Requirements as to production of certificate of insurance or
security.
17. Deposits.
18. Agents.
19. Offences in respect of certificates of insurance.
20. General penalty.
21. Officers of companies.
22. Jurisdiction of Courts.
23. Power to make rules.
24. Application of Act to securities.
25. Power to exempt.

_____________________________
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MOTOR VEHICLES INSURANCE

(THIRD PARTY RISKS) ACT
An Act to make provision for the protection of third parties against risks
arising out of the use of motor vehicles

Commencement: 28th February 1950

Citation.
1. This Act may be cited as the Motor Vehicles Insurance (Third Party
Risks) Act.

Interpretation.
2. In this Act, unless the context otherwise requires —

“Authority” means the Autoriti Monetari Brunei Darussalam

established by the Autoriti Monetari Brunei Darussalam Order,
2010 (S 103/2010);
[S 103/2010]

“Commissioner of Police” has the same meaning as in the Royal

Brunei Police Force Act (Chapter 50);
“company” includes any company incorporated within or outside
Brunei Darussalam and any firm or partnership;
“motor vehicle” means a mechanically propelled vehicle intended
or adapted for use on roads, but does not include an invalid
carriage;
“owner”, in relation to a vehicle which is subject to a hiring
agreement or hire purchase agreement, means the persons in
possession of the vehicle under the agreement;
“police constable” means any member of the Police Force
constituted under the Royal Brunei Police Force Act (Chapter 50),
but does not include a special police officer or an additional police
officer;
“policy of insurance” includes a covering note;

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“road” means any highway and any other road to which the public
has access, and includes bridges over which a road passes.

Users of motor vehicles to be insured against third party risks.

3. (1) Subject to the provisions of this Act, it shall not be lawful for any
person to use on a road, or to cause or permit any other person to use on a
road, a motor vehicle unless there is in force in relation to the user of the
motor vehicle by that person or that other person, as the case may be, such a
policy of insurance or such a security in respect of third party risks as
complies with the requirements of this Act.

(2) If a person acts in contravention of this section, he is guilty of an

offence and liable on conviction to a fine of $10,000 and imprisonment for
12 months, and a person convicted of an offence under this section shall,
unless the court for special reasons thinks fit to order otherwise and without
prejudice to the power of the court to order a longer period of
disqualification, be disqualified from holding or obtaining a driving licence
under the Road Traffic Act (Chapter 68), for a period of 12 months from the
date of the conviction.
[S 28/1998]

(3) For the purposes of the Road Traffic Act (Chapter 68) —

(a) a person convicted under this section is deemed to be

convicted of an offence in connection with the driving of a motor
vehicle; and

(b) a person disqualified by virtue of a conviction under this

section or of an order made thereunder from holding or obtaining a
driving licence is deemed to be disqualified by virtue of a conviction or
order under that Act.

(4) Notwithstanding any written law prescribing a time within which

proceedings may be brought before a court, proceedings for an offence under
this section may be brought —

(a) within a period of 6 months from the date of the commission

of the alleged offence; or
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(b) within a period which exceeds neither 3 months from the date
on which it came to the knowledge of the prosecutor that the offence
had been committed nor one year from the date of the commission of
the offence,

whichever period is the longer.

(5) This section does not apply to —

(a) a vehicle owned by the Government upon any occasion upon

which such vehicle is being used by a person authorised by the
Government to use the vehicle on such occasion;

(b) a vehicle owned by a person who has deposited and keeps

deposited with the State Financial Officer such sum as the Authority
may direct, at any time when the vehicle is being driven by the owner
or by a servant of the owner in the course of his employment or is
otherwise subject to the control of the owner; or
[S 103/2010]

(c) any vehicle at any time when it is being driven for police
purposes by or under the direction of a police constable or by a person
employed by the Commissioner of Police.

Requirements in respect of policies.

4. (1) In order to comply with the requirements of this Act, a policy of
insurance must be a policy which —
[S 48/2005]

(a) is issued by an insurer approved by the Authority but, if the

insurer does not reside within Brunei Darussalam no such approval
shall be given unless the Authority is satisfied that the insurer has
complied with the provisions of section 18(1) and (2);
[S 103/2010]

(b) insures such person, persons or classes of persons as may be

specified in the policy in respect of any liability which may be incurred
by him or them in respect of the death of, or bodily injury to, any
person caused by or arising out of the use of the motor vehicle on a
road:

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Provided that such a policy shall not be required to cover —

(i) liability in respect of the death arising out of and in the

course of his employment of a person in the
employment of a person insured by the policy or of
bodily injury sustained by such a person arising out of
and in the course of his employment;
(ii) except in the case of a motor vehicle in which
passengers are carried for hire or reward or by reason of
or in pursuance of a contract of employment, liability in
respect of the death of or bodily injury to persons being
carried in or upon, or entering or getting on to, or
alighting from, the motor vehicle at the time of the
occurrence of the event out of which the claims arise; or
(iii) any contractual liability.
(2) Where any payment is made (whether or not with an admission of
liability) by —

(a) an approved insurer under or in consequence of a policy

issued under this Act;

(b) the owner of a motor vehicle in relation to the user of which a

security under section 5 is in force; or

(c) the owner of a motor vehicle who has made a deposit under
section 3,

in respect of the death of or bodily injury to any person arising out of the use
of a motor vehicle on a road, and the person who has so died or been bodily
injured has, to the knowledge of the approved insurer or such owners as the
case may be, received treatment at a hospital, whether as an in-patient or as
an out-patient, in respect of the injury so arising, there shall also be paid by
the approved insurer or such owner to such hospital the expenses reasonably
incurred by the hospital in affording such treatment, after deducting from
such expenses any moneys actually received by the hospital in payment of a
specific charge for such treatment:
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Provided that the amount to be paid by the approved insurer or such

owner shall not exceed $1,500 for each person so treated as an in-patient or
$150 for each person so treated as an out-patient.

For the purposes of this subsection —

“hospital” means an institution (not being an institution carried on
for profit) which provides medical or surgical treatment for
in-patients;
“expenses reasonably incurred” means —
(a) in relation to a person who receives treatment at a hospital
as an in-patient, the amount chargeable to a member of the general
public, in a ward of the class occupied by the person who received
treatment, in accordance with the scale of fees normally charged
by the hospital; and
(b) in relation to a person who receives treatment at a hospital
as an out-patient, reasonable expenses actually incurred.
(3) Notwithstanding the provisions of any written law to the contrary,
a person issuing a policy of insurance under this section shall be liable to
indemnify the persons or classes of persons specified in the policy in respect
of any liability which the policy purports to cover in the case of those
persons or classes of persons.

(4) A policy shall be of no effect for the purposes of this Act unless
and until there is issued by the insurer to the person by whom the policy is
effected a certificate (referred to in this Act as a certificate of insurance) in
the prescribed form and containing such particulars of any conditions subject
to which the policy is issued and of any other matters as may be prescribed,
and different forms and different particulars may be prescribed in relation to
different cases or circumstances.

Requirements in respect of securities.

5. (1) In order to comply with the requirements of this Act, a security
must —

(a) be given either by an insurer approved by the Authority or by

some body of persons approved by the Authority which carries on the
business of giving securities of a like kind but, if the insurer or such

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body of persons do not reside within Brunei Darussalam, no such

approval shall be given unless the Authority is satisfied that the insurer
or such body of persons has complied with the provisions of
section 18(1) and (2); and
[S 103/2010]

(b) consist of an undertaking by the giver of the security to make

good subject to any conditions specified therein and up to the amount
in the case of an undertaking relating to the use of motor vehicles in
which passengers are carried for hire or reward of not less than
$225,000 and in any other case of not less than $45,000 and any failure
by the owner of the vehicle or such other persons or classes of persons
as may be specified in the security duly to discharge any such liability
as is required to be covered by a policy of insurance under section 4
which may be incurred by him or them.

(2) A security shall be of no effect for the purposes of this Act unless
and until there is issued by the person giving the security to the person to
whom it is given a certificate (referred to in this Act as a certificate of
security) in the prescribed form and containing such particulars of any
conditions subject to which the security is issued and of any other matters as
may be prescribed, and different forms and different particulars may be
prescribed in relation to different cases or circumstances.

Certain conditions to policies or securities to be of no effect.

6. Any condition in a policy or security issued or given for the purposes
of this Act providing that no liability shall arise under the policy or security,
or that any liability so arising shall cease in the event of some specified thing
being done or omitted to be done after the happening of the event giving rise
to a claim under the policy or security, shall be of no effect in connection
with such claims as are mentioned in section 4(1)(b):

Provided that nothing in this section shall be taken to render void any
provision in a policy or security requiring the person insured or secured to
repay to the insurer or the giver of the security any sums which the latter
may have become liable to pay under the policy or security and which have
been applied to the satisfaction of the claims of third parties.
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Avoidance of restrictions on scope of policies covering third party risks.

7. Where a certificate of insurance has been issued under section 4(4) to
the person by whom a policy has been effected, so much of the policy as
purports to restrict the insurance of the persons insured thereby by reference
to any of the following matters —

(a) the age or physical or mental condition of persons driving the

vehicle;
[S 48/2008]

(b) the condition of the vehicle;

[S 48/2008]

(c) the number of persons that the vehicle carries;

(d) the weight or physical characteristics of the goods that the

vehicle carries;

(e) the times at which, or the areas within which, the vehicle is
used;

(f) the horse-power or value of the vehicle;

(g) the carrying on the vehicle of any particular apparatus; or

(h) the carrying on the vehicle of any particular means of

identification other than any means of identification required to be
carried by or under any written law relating to motor vehicles,

shall as respects such liabilities as are required to be covered by a policy

under section 4(1)(b) be of no effect:

Provided that nothing in this section shall require an insurer to pay any
sum in respect of the liability of any person otherwise than in or towards the
discharge of that liability, and any sum paid by an insurer in or towards the
discharge of any liability of any person which is covered by the policy by
virtue only of this section shall be recoverable by the insurer from that
person.

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Applicants for motor vehicle furnish licences to evidence of insurance.

8. Every person, when applying for a driving licence under the Road
Traffic Act (Chapter 68) to authorise him to drive a motor vehicle, shall
furnish to the Licensing Officer to whom the application is being made such
evidence as may be prescribed that either —

(a) on the date when the licence comes into operation there will
be in force the policy of insurance or the security required by this Act
in relation to the use of the motor vehicle by the applicant or by other
persons on his order or with his permission; or

(b) the motor vehicle is a vehicle to which section 3 does not

apply at any time when it is being driven by the owner thereof or by a
servant of his in the course of his employment or is otherwise subject to
the control of the owner.

Duty of insurers to satisfy judgments against persons insured in respect

of third party risks.
9. (1) If after a certificate of insurance has been issued under
section 4(4) to the person by whom a policy has been effected, judgment in
respect of any such liability as is required to be covered by a policy under
section 4(1)(b) (being a liability covered by the terms of the policy) is
obtained against any person insured by the policy, then, notwithstanding that
the insurer may be entitled to avoid or cancel or may have avoided or
cancelled the policy, the insurer shall subject to the provisions of this section
pay to the persons entitled to the benefit of the judgment any sum payable
thereunder in respect of the liability, including any amount payable in respect
of costs and any sum payable in respect of interest on that sum by virtue of
any written law relating to interest on judgments.

(2) No sum shall be payable by an insurer under the foregoing

provisions —

(a) in respect of any judgment, unless before or within 7 days

after the commencement of the proceedings in which the judgment was
given the insurer had notice of the bringing of the proceedings;

(b) in respect of any judgment so long as execution thereon is

stayed pending an appeal; or
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(c) in connection with any liability if, before the happening of the
event which was the cause of the death or bodily injury giving rise to
the liability, the policy was cancelled by mutual consent or by virtue of
any provision contained therein and either —

(i) before the happening of the event, the certificate was

surrendered to the insurer or the person to whom the
certificate was issued made a statutory declaration
stating that the certificate had been lost or destroyed;
(ii) after the happening of the event but before the
expiration of a period of 14 days from the taking effect
of the cancellation of the policy, the certificate was
surrendered to the insurer, or the person to whom the
certificate was issued made such a statutory declaration
as mentioned in sub-paragraph (i); or
(iii) either before or after the happening of the event but
within the said period of 14 days, the insurer has
commenced proceedings under this Act in respect of the
failure to surrender the certificate.
(3) No sum shall be payable by an insurer under the foregoing
provisions if in an action, commenced before or within 3 months after the
commencement of the proceedings in which the judgment was given, he has
obtained a declaration that, apart from any provision contained in the policy,
he is entitled to avoid it on the ground that it was obtained by the non-
disclosure of a material fact or by a representation of fact which was false in
some material particular or, if he has avoided the policy on that ground, that
he was entitled to do so apart from any provisions contained in it:

Provided that an insurer who has obtained such a declaration as aforesaid

in an action shall not thereby become entitled to the benefit of this subsection
as respects any judgment obtained in proceedings commenced before the
commencement of that action unless, before or within 7 days after the
commencement of that action, he has given notice thereof to the person who
is the plaintiff in that proceedings specifying the non-disclosure or false
representation on which he proposes to rely, and any person to whom notice
of such an action is so given shall be entitled if he thinks fit to be made a
party thereto.

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(4) If the amount which an insurer becomes liable under this section to
pay in respect of a liability of a person insured by a policy exceeds the
amount for which he would apart from the provisions of this section be liable
under the policy in respect of that liability, he shall be entitled to recover the
excess from that person.

(5) In this section —

“material” means of such a nature as to influence the judgment of

a prudent insurer in determining whether he will take the risk and,
if so, at what premium and on what conditions;
“liability covered by the terms of the policy” means a liability
which is covered by the policy or which would be so covered but
for the fact that the insurer is entitled to avoid or cancel or has
avoided or cancelled the policy.

(6) In this Act, references to a certificate of insurance in any

provision, relating to the surrender or the loss or destruction of a certificate
of insurance, shall in relation to policies under which more than one
certificate is issued be construed as references to all the certificates and shall,
where any copy has been issued of any certificate, be construed as including
a reference to that copy.

Rights of third parties against insurers.

10. (1) Where under any policy issued for the purposes of this Act,
a person (hereinafter called “the insured”) is insured against liabilities to
third parties which he may incur, then —

(a) in the event of the insured becoming bankrupt or making a

composition or arrangement with his creditors; or

(b) in the case of the insured being a company, in the event of

a winding-up order being made or a resolution for a voluntary
winding-up being passed with respect of the company, or of a receiver
or manager of the company’s business or undertaking being duly
appointed, or of possession being taken by or on behalf of the holders
of any debentures secured by a floating charge of any property
comprised in or subject to the charge,
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if, either before or after that event, any such liability is incurred by the
insured, his rights against the insurer under the policy, in respect of the
liability, shall, notwithstanding the provisions of any written law to the
contrary, be transferred to and vest in the third party to whom the liability
was so incurred.

(2) Where an order is made under any law for the time being in force
relating to bankruptcy for the administration in bankruptcy of the estate of a
deceased debtor, then, if any debt provable in bankruptcy is owing by the
deceased in respect of a liability against which he was insured under a policy
issued for the purposes of this Act as being a liability to a third party, the
deceased debtor’s rights against the insurer under the policy in respect of that
liability shall, notwithstanding the provisions of any written law to the
contrary, be transferred to and vest in the person to whom the debt is owing.

(3) Any condition in a policy issued for the purposes of this Act,
purporting directly or indirectly to avoid the policy or to alter the rights of
the party thereunder upon the happening to the insured of any of the events
specified in subsection (1)(a) or (b) or upon the making of an order under
any law for the time being in force relating to bankruptcy for the
administration in bankruptcy of his estate, shall be of no effect.

(4) Upon a transfer under subsection (1) or (2), the insurer shall,
subject to the provisions of section 12, be under the same liability to the third
party as he would have been under to the insured but if the liability of the
insurer to the insured —

(a) exceeds the liability of the insured to the third party, nothing
in this Act shall affect the rights of the insured against the insurer in
respect of the excess;

(b) is less than the liability of the insured to the third party,
nothing in this Act shall affect the rights of the third party against the
insured in respect of the balance.

(5) For the purposes of this section and of sections 11 and 12,
“liabilities to third parties”, in relation to a person insured under any policy
of insurance, does not include any liability of that person in the capacity of
insurer under some other policy of insurance.

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(6) This section and sections 11 and 12 do not apply —

(a) where a company is wound up voluntarily merely for the

purposes of reconstruction or of amalgamation with another company;
or

(b) to any case in which, under any written law making provision
for the payment of compensation to workmen for injuries suffered in
the course of their employment, the rights of an employer against an
insurer in respect of liability for such compensation are transferred to
and vested in the third party.

Duty to give necessary information to third parties.

11. (1) Any person, against whom a claim is made in respect of any such
liability as is required to be covered by a policy under section 4(1)(b), shall,
on demand by or on behalf of the person making the claim, state whether or
not he was insured in respect of that liability by any policy having effect for
the purposes of this Act or would have been so insured if the insurer had not
avoided or cancelled the policy, and if he was or would have been so insured,
give such particulars with respect to that policy as were specified in the
certificate of insurance delivered in respect thereof under section 4(4).

(2) In the event of —

(a) any person becoming bankrupt or making a composition or

arrangement with his creditors;

(b) an order being made under any law for the time being in force
relating to bankruptcy for the administration in bankruptcy in respect of
the estate of any person; or

(c) a winding-up order being made or a resolution for a voluntary

winding-up being passed with respect to any company or of a receiver
or manager of the company’s business or undertaking being duly
appointed or of possession being taken by or on behalf of the holders of
any debentures secured by a floating charge of any property comprised
in or subject to the charge,

it shall be the duty of the bankrupt debtor, personal representative of the

deceased debtor or company and, as the case may be, of the officer having
jurisdiction under any law for the time being in force relating to bankruptcy,
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trustee, liquidator, receiver or manager or person in possession of the

property to give, at the request of any person claiming that the bankrupt
debtor, deceased debtor or company is under a liability to him, such
information as may reasonably be required by him for the purpose of
ascertaining whether any rights have been transferred to and vested in him by
this Act and for the purpose of enforcing such rights if any, and any contract
of insurance, in so far as it purports whether directly or indirectly to avoid
the contract or to alter the rights of the parties thereunder upon the giving of
any such information in the events aforesaid or otherwise to prohibit or
prevent the giving thereof in the said events, shall be of no effect.

(3) If the information given to any person, in pursuance of

subsection (2), discloses reasonable ground for supposing that there have or
may have been transferred to him under this Act, rights against any particular
insurer, that insurer shall be subject to the same duty as is imposed by
subsection (2) on the person therein mentioned.

(4) The duty to give information imposed by this section shall include
a duty to allow all contracts of insurance receipts for premiums and other
relevant documents in the possession or power of the person on whom the
duty is so imposed to be inspected and copies thereof to be taken.

(5) If, without reasonable excuse, any person fails to comply with the
provisions of this section or wilfully makes any false or misleading statement
in reply to any such demand, he is guilty of an offence.

Settlement between insurers and insured persons.

12. Where a person who is insured under a policy issued for the purposes
of this Act has become bankrupt, or where in the case of such insured person
being a company, a winding-up order has been made or a resolution for a
voluntary winding-up has been passed with respect to the company, no
agreement made between the insurer and the insured after liability has been
incurred to a third party and after the commencement of the bankruptcy or
winding-up, as the case may be, nor any waiver assignment or other
disposition made by or payment made to the insured after the
commencement, shall be effective to defeat or affect the rights transferred to
the third party under this Act, but those rights shall be the same as if no such
agreement, waiver, assignment, disposition or payment had been made.

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Bankruptcy, insured persons not to affect certain claims by third

parties.
13. Where a certificate of insurance has been issued under section 4(4) to
the person by whom a policy has been effected, the happening in relation to
any person insured by the policy of any such event as is mentioned in
section 10(1) or (2) shall, notwithstanding anything in this Act, not affect any
such liability of that person as is required to be covered by a policy under
section (4)(1)(b), but nothing in this section shall affect any rights against the
insurer conferred under sections 10, 11 and 12 on the person to whom the
liability was incurred.

Further rights of third parties against insurers.

14. (1) No settlement by an insurer, in respect of any claim which might
be made by a third party in respect of any such liability as is required to
be covered by a policy under section 4(1)(b), shall be valid unless such
third party is a party to such settlement.
[S 48/2005]

(2) A policy issued under this Act shall remain in force and available
for third parties notwithstanding the death of any person insured under
section 4(1)(b) as if the insured person was still alive.

Duty to surrender certificate on cancellation of policy.

15. Where a certificate of insurance has been issued under section 4(4) to
the person by whom a policy has been effected and the policy is cancelled by
mutual consent or by virtue of any provision in the policy, the person to
whom the certificate was issued shall, within 7 days from the taking effect of
the cancellation, surrender the certificate to the insurer or, if it has been lost
or destroyed, make a statutory declaration to that effect, and if he fails to do
so he is guilty of an offence.

Requirements as to production of certificate of insurance or security.

16. (1) Any person driving a motor vehicle on a road shall, on being so
required by a police constable, give his name and address of the owner of the
motor vehicle and produce his certificate, and if he fails so to do he is guilty
of an offence:

Provided that if the driver of a motor vehicle within 5 days after the date
on which the production of his certificate was so required, produces the
certificate in person at such police station as may have been specified by the
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driver at the time its production was required, he shall not be convicted of an
offence under this subsection by reason only of failure to produce his
certificate to the police officer.

(2) If, in any case where owing to the presence of a motor vehicle on a
road, an accident occurs involving personal injury to another person, the
driver of the vehicle does not at the time produce his certificate to a police
constable or to some other person who having reasonable grounds for so
doing has required its production, the driver shall, as soon as possible and in
any case within 24 hours of the occurrence of the accident, report the
accident at a police station and thereupon produce his certificate, and if he
fails to do so he is guilty of an offence:

Provided that a person shall not be convicted of an offence under this

subsection by reason only of failure to produce his certificate if, within
5 days after the occurrence of the accident, he produces the certificate in
person at such police station as may be specified by him at the time the
accident was reported.

(3) It shall be the duty of the owner of a motor vehicle to give such
information as he may be required by or on behalf of the Commissioner of
Police to give for the purpose of determining whether the motor vehicle was
or was not being driven in contravention of section 3 on any occasion when
the driver was required under this section to produce his certificate, and if the
owner fails to do so he is guilty of an offence.

(4) In this section, “produce his certificate” means produce for

examination the relevant certificate of insurance or certificate of security or
such other evidence that the motor vehicle is not or was not being driven in
contravention of section 3 as may be prescribed.

Deposits.
17. If any sum is deposited by any person under section 3 or as a condition
of approval by the Authority under section 4 or 5, no part of such sum shall,
so long as any liabilities being such liabilities as are required to be covered
by a policy of insurance under this Act which have been incurred by him
have not been discharged or otherwise provided for, be applicable in
discharge of any other liabilities incurred by him.
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18 CAP. 90 (Third Party Risks)

Agents.
18. (1) An insurer or body of persons proposing to issue policies of
insurance or to give securities for the purposes of this Act shall, unless
incorporated in or residing within Brunei Darussalam, appoint one or more
persons residing within Brunei Darussalam to act as agent for such insurer or
body of persons and to accept on behalf of such insurer or body of persons
service of process and of any notices required to be served or given.

(2) Such insurer or body of persons shall file with the Authority the
names and addresses of the person or persons appointed under subsection (1)
and shall, in the event of such person or persons ceasing to reside within
Brunei Darussalam or to be so appointed, within 7 days of such event, file
with the Authority the names and addresses of one or more other such
persons.
[S 103/2010]

(3) Any process or notice required to be served or given to such

insurer or body of persons shall be sufficiently served or given if addressed
to any person whose name has been filed and left at or sent by post to the
address which has been so filed.

(4) For the purposes of sections 4(4), 5(2), 9(2), 11(3) and 15,
“insurer” includes a person appointed under subsection (1).

(5) Nothing in this section shall relieve any company from any
obligation to register under any written law for the time being in force
relating to companies.

Offences in respect of certificate of insurance.

19. Any person who —

(a) for the purpose of obtaining the issue of a certificate of

insurance or of a certificate of security, makes any statement which is
false or misleading or withholds any material information unless he
establishes to the satisfaction of the court that he acted without any
intent to deceive;

(b) forges, alters, defaces or mutilates any certificate of insurance

or certificate of security;
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Motor Vehicles Insurance
(Third Party Risks) CAP. 90 19

(c) lends to or allows to be used by another person any certificate

of insurance or certificate of security which such person is not entitled
to use;

(d) makes or has in his possession any certificate of insurance or

certificate of security which is calculated to deceive unless he
establishes to the satisfaction of the court that he acted without intent to
deceive; or

(e) issues a certificate of insurance or certificate of security

which is to his knowledge false in any material particular,

is guilty of an offence and liable on conviction to a fine of $8,000 and

imprisonment for 3 years.

General penalty.
20. Any person guilty of an offence against this Act for which no special
penalty is provided is liable, in the case of a first offence to a fine of $2,000
and in the case of a second or subsequent offence to a fine of $4,000 and
imprisonment for 6 months.

Officers of companies.
21. If any person guilty of an offence against this Act is a company, any
officer or servant in Brunei Darussalam of the company who is privy to the
offence is guilty of a like offence and liable to the punishment provided in
this Act for such offence.

Jurisdiction of courts.
22. Notwithstanding anything contained in the Criminal Procedure Code
(Chapter 7), the Court of a Magistrate shall have jurisdiction to try any
offence against the provisions of this Act or any rule made thereunder and
may pass any sentence provided by this Act for any such offence.

Power to make rules.

23. The Authority may make rules for prescribing anything which may be
prescribed under this Act and generally for the purpose of carrying this Act
into effect, and in particular, but without prejudice to the generality of the
foregoing provisions, may make rules —
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20 CAP. 90 (Third Party Risks)

(a) to prescribe the forms to be used;

(b) as to applications for and the issue of certificates of insurance

and any other documents which may be prescribed, and as to the
keeping of records of documents and the furnishing of particulars
thereof or the giving of information with respect thereto;

(c) as to the issues of copies of any such certificates or other

documents which are lost or destroyed;

(d) as to the custody, production, cancellation and surrender of

any such certificates or other documents;

(e) for providing that any provisions of this Act shall, in relation
to motor vehicles brought into Brunei Darussalam by persons making
only a temporary stay in Brunei Darussalam, have effect subject to such
modifications and adaptations as may be prescribed;

(f) to prescribe the penalty not exceeding a fine of $4,000 and

imprisonment for 6 months with which the contravention of any rule
made under this section be punishable;

(g) with respect to the payment of deposits under this Act and the
investment thereof or dealing therewith, the deposit of stocks or other
securities in lieu of money, the payment of the interest or dividends
from time to time accruing due on any securities in which deposits are
for the time being invested and the withdrawals and transfers of
deposits.

Application of Act to securities.

24. The provisions of this Act apply in relation to securities having effect
for the purposes of this Act as they apply in relation to policies of insurance,
and in relation to any such security, references in the provisions to being
insured to a certificate of insurance, to an insurer and to persons insured shall
be construed respectively as references to the having in force of the security,
to the certificate of security, to the giver of the security and to the persons
whose liability is covered by the security.
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(Third Party Risks) CAP. 90 21

Power to exempt.
25. The Authority may by public notification either generally or for such
period and subject to such conditions as may be specified in such notification
exempt from any provision of this Act or any rules made thereunder any
person or class or description of persons or any motor vehicles or class or
description of motor vehicles.
[S 103/2010]

B.L.R.O. 3/2014