How Drug Driving Convictions Affect Insurance in South Australia

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How a Drug Driving Conviction May Affect Your Car Insurance

Drug driving is a serious offence with far-reaching implications, including fines, licence disqualification, and even potential impacts on insurance policies.

Despite the serious implications of a drug driving conviction, section 47C of the Road Traffic Act 1961 (SA), may ensure that drivers are not unfairly penalised by insurers based solely on their conviction.

Book a same-day free 30-minute consultation or (08) 7094 2021 now to speak with a senior traffic lawyer today to avoid losing your licence and achieve the best possible outcome.


Guide to Section 47C of the Road Traffic Act 1961 (SA)

Section 47C prevents insurers from automatically denying liability under an insurance policy based on a conviction for drug driving (or drink driving under Section 47B). Specifically. The law provides that:

  1. Convictions Do Not Automatically Affect Insurance – A person convicted or found guilty of an offence under Section 47BA (driving with a prescribed drug) cannot automatically be assumed, for insurance purposes, to have been:
    • Under the influence of drugs.
    • Incapable of driving or exercising effective control of a motor vehicle.
    • In breach of any contract, agreement, or policy of insurance solely because of their conviction.
  1. Contracts Cannot Exclude Coverage – Any clause in an insurance policy or contract that attempts to exclude or limit coverage due to a conviction under Section 47BA is deemed void. This means that insurers cannot deny liability purely on the basis of a drug driving conviction.

Zurich Australia Insurance Ltd v Wood

The case of Zurich Australia Insurance Ltd v Wood (1997) 69 SASR 572 clarified the application of Section 47C(3). In this case:

  • The insurer, Zurich, denied indemnity to the plaintiff, Samuel David Wood, citing a policy clause that excluded coverage if the driver had a blood alcohol level exceeding the statutory limit.
  • The court found that Section 47C(3) rendered such clauses void, as they attempted to exclude liability solely on the basis of a blood alcohol conviction.
  • Judge Lowrie emphasised that liability under the policy could only be denied if it was proven that the driver was “under the influence of alcohol” or impaired, beyond just a statutory limit.

While Zurich focused on drink driving, the principles extend to drug driving offences. The ruling confirms that insurers cannot rely solely on the presence of drugs or alcohol to deny coverage.

However, insurers may still deny claims if a breach of a specific policy condition is proven. Therefore, while Section 47C protects against automatic denial of coverage, drivers should carefully review their insurance policy terms, particularly conditions relating to substance use or driving offences.


What This Means for Drivers in South Australia

If you are convicted of a drug driving offence, your insurance coverage will not automatically be void. However, insurers can still:

  • Investigate whether other conditions of your policy were breached.
  • Deny claims if it is proven that you violated specific policy terms unrelated to the conviction itself.

For example:

  • If your policy explicitly states that you must not drive under the influence of any substance, and evidence shows impairment, this could constitute a breach.

Practical Advice for Drivers

  1. Review Your Insurance Policy – Familiarise yourself with the terms and conditions, particularly those related to substance use and driving offences.
  2. Seek Legal Advice – If your claim is denied, book a free 30 minute consultation with our lawyers experienced in traffic law and insurance disputes. We can help you determine whether the denial was lawful under Section 47C.
  3. Maintain Open Communication with Your Insurer – Promptly notify your insurer of any charges or convictions to avoid complications with your policy.

Book a Free Traffic Lawyer Consultation

At Talon Legal, we have extensive experience in both traffic law and insurance disputes. Whether you’re facing a drug driving or DUI charges in SA or an unfair insurance denial our experienced Adelaide traffic lawyers can:

  • Advise you on your rights under section 47C of the Road Traffic Act 1961 (SA).
  • Represent you in disputes with insurers over denied claims.
  • Provide tailored defence strategies for drug driving charges.

Contact Talon Legal today to discuss your case for free and without obligation:

  1. Call now (08) 7094 2021 or book your free case review online.
  2. Understand non-conviction outcomes: Section 24 Sentencing Act guide.
  3. Learn more about traffic offences law in SA: Road Traffic Offences in SA hub.

Do not leave your future to chance. Drug driving charges are serious and carry lasting consequences. We act quickly, communicate clearly, and fight hard to protect your rights. 

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