Insurance requirements for transporting explosives

By law, you must provide the following insurance for licensed and registered vehicles to transport or manufacture explosives:

  • category 2 or category 3 loads of class 1 explosives, or placard loads of class 2–9 explosives
  • mobile manufacturing units (MMU).

(A placard load of class 2–9 explosives means a load of more than 500kg of class 2-9 explosives in a receptacle or class 2–9 explosives in a receptacle with a capacity of more than 500L, such as ammonium nitrate, which is a class 5.1.)

You must provide proof of insurance when you apply for a new licence or renew an existing licence.

What the policy must cover

The insurance policy must cover the vehicle or boat nominated for indemnity for at least:

  • $2.5 million for a category 2 load of class 1 explosives
  • $5 million for a category 3 load of class 1 explosives, placard load of classes 2–9 explosives or an MMU.

The insurance policy must cover the vehicle or boat nominated for indemnity for both:

  • personal injury, death, property damage and other damage (other than consequential economic loss) arising out of a relevant event
  • costs incurred by or for a federal or state government authority in a clean-up resulting from a relevant event.

An insurance policy for a registered MMU is compulsory but a policy for an unregistered MMU operating on a mine site only is not compulsory.

Note: Relevant event, in relation to a vehicle or boat, means a fire, explosion, leakage or spillage of an explosive in, on or from the vehicle or boat or any packaging transported in or on the vehicle or boat.

Information required for insurance

The insurance policy must contain:

  • the name of the licence holder or registered owner
  • the prescribed sum of policy coverage - $2.5 million or $5 million as appropriate
  • a statement that the policy complies with s. 144 of the Explosives Regulation 2017 or the following words for the nominated boat or vehicle
    • personal injury, death, property damage and other damage (other than consequential economic loss) arising out of a relevant event
    • costs incurred by or for a federal or state government authority in a clean-up resulting from a relevant event (see note above).
  • the registration numbers of the vehicle or boat
  • a statement that the policy is current at the signed date of application.

Insurance policy restrictions

Some policies have restrictions placed on them by the insurer, such as restrictions on distance, who drivers may be, age and explosives type or class. Where this occurs, the licence lists these restrictions as a condition of licence.

Blanket policy

A blanket insurance policy that meets the above requirements is acceptable when all vehicles for a licence holder are covered by the policy. In this case, the licence holder doesn't need to provide proof of insurance indemnity for licensing purposes if the policy details kept with the Explosives Inspectorate remain current.

Additional vehicles

Some policies list a schedule of vehicles. If you wish to nominate a vehicle on a schedule to a policy that's already cleared, the amended schedule with the additional vehicle will be acceptable if the policy details with the Explosives Inspectorate remain current.

Renewals

When you renew a licence, evidence of the currency of the policy that meets the above requirements is acceptable if the other policy details held with the Explosives Inspectorate remain current. If you get a new or changed policy, you must provide evidence of compliance with s. 144 of the Explosives Regulation 2017.

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