South Australian Consolidated Acts

MOTOR VEHICLES ACT 1959 - SECT 125

125—Power of insurer to deal with claims against insured

        (1)         An insurer may, on behalf of an insured person—

            (a)         conduct any legal proceedings in respect of circumstances out of which a claim against the insurer has arisen, or may arise; and

            (b)         conduct and control negotiations in respect of any claim against the insured person; and

            (c)         at any stage of those negotiations or proceedings pay, compromise or settle any claim against the insured person.

        (2)         The insured person must sign and execute all such warrants, authorities, and other documents as are necessary to give effect to this section and, if he or she makes default in doing so or is absent or cannot be found, the insurer may sign or execute the warrants, authorities, or other documents on behalf of the insured person.

        (3)         Where—

            (a)         as the result of the use of a motor vehicle an accident happens which results in the death of or bodily injury to any person, as well as damage to property; and

            (b)         claims are made in respect of the death or bodily injury and also in respect of the damage to property,

then nothing said or done in any negotiations for settlement of either claim, and no judgment given in legal proceedings in respect of either claim, can be evidence in legal proceedings in respect of the other claim.