I'm wondering if the 3rd party insurance thing is a misinterpretation of the proposed legislation. Registration in the form of the abandoned dog-licence would make sense, especially when backed up by a chip. This would allow law enforcement to identify which dogs need to be insured, if they are, etc.
Currently the small number of dogs that are required to be insured are difficult to find, as officers trained in breed identification are required. Mandatory chipping and registration would make that a lot easier.
And hey, if my dog does have to have 3rd party insurance, then it'll be totally safe to take it to a trail centre, eh coffeeking??