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Insurance requirements for transporting explosives

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

Insurance is required for:

  • registered mobile manufacturing units (MMUs)*
  • licensed and registered vehicles that transport
    • for Class 1 explosives – category 2 or category 3 loads (refer to Table 2.1 of the Australian explosives code 3rd edition (AEC3) for definitions of these quantities)
    • for Classes 2 to 9 explosives – placard loads (i.e. when the receptacle has a volume of more than 500L or the explosives weigh more than 500kg).

*Insurance is not compulsory for unregistered MMUs operating on a mine site only.

What the policy must cover

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

  • $2.5 million for a category 2 load of Class 1 explosives
  • $5 million for
    • category 3 load of Class 1 explosives
    • placard load of Classes 2–9 explosives
    • an MMU.

The insurance policy must cover the vehicle 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.

A 'relevant event', in relation to a vehicle, means a fire, explosion, leakage or spillage of an explosive in, on or from the vehicle or any packaging transported in or on the vehicle.

Policy requirements

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 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
  • a statement that the policy is current at the date you apply for the licence to transport.

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.

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