State Government Insurance Office Amendment Act 1983 (WA)

WESTERN AUSTRALIA.

STATE GOVERNMENT

INSURANCE OFFICE.

No. 76 of 1983.

AN ACT to amend the State Government Insurance

Office Act 1938-1965.

[Assented to 22 December 1983.]

BE it enacted by the Queen's Most ExcellentMajesty, by and with the advice and consent of the Legislative Council and the Legislative Assembly of Western Australia, in this present Parliament assembled, and by the authority of the same, as follows:-

Short title

1. (1) This Act may be cited as the State and citation.

Government Insurance Office Amendment Act

1983.

Reprinted

(2) In this Act, the State Government Insurance as approved in Vol. 14 of

Office Act 1938-1965 is referred to as the principal

Rep. Acts

14 September.

Act.

1959 and

amended

by Act No. 18

of 1985.

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(3) The principal Act as amended by this Act may be cited as the State Government Insurance Office Act 1938-1983.

Commence-

ment. 2. This Act shall come into operation on a day

to be fixed by proclamation.

Long title	3.	The long title to the principal Act is amended
amended.

by deleting "certain".

Section 2

amended. 4. Section 2 of the principal Act is amended

(a) by deleting the definition of "friendly society" and substituting the following definition-

" "Fund" means a Fund established by

section 7A of this Act; ";

(b) by deleting the definition of "insurance business" and substituting the following defin tions-

'C "insurance" includes assurance, co-

insurance, re-insurance, guarantee and surety and any other class or form of insurance which may be undertaken by an insurer;

"insurance business" means the issue

of or the undertaking of liability

under policies of insurance; ";

and

(c) by deleting the definition of "local authority".

Section 5

repealed. 5. Section 5 of the principal Act is repealed.

1983.] State Government Insurance [No. 76.

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Section 7 of the principal Act is amended in Section 7

6.   amended.

subsection (7) by repealing the proviso and sub-

stituting a new proviso as follows-

Provided that the State Government Insur- ance Office shall not be entitled to the services of any Government officer or department unless a full and appropriate charge is made in all respects on a commen- surate basis with the charge which would be made to other insurers trading in Western Australia for the like services by persons engaged in providing such services. ".

7.   After section 7 of the principal Act, the .7/e3enDAIVA•

following sections are inserted— inserted.

it 7A. (1) The business of the State Funds.

Government Insurance Office shall be conducted within and with respect to 3 Funds, that is to say

(a) the Trading Fund;

(b) the Life Insurance Fund; and

(c) the Government Insurance Fund.

(2) The Trading Fund shall include

(a)	the commercial business of the State Government Insurance Office, other than the business of life insurance; and
(b)	the business of that Office with respect to certain industrial diseases undertaken in accordance with section 163 of the Workers' Compensation and Assistance Act 1981.

(3) The Life Insurance Fund shall include the life insurance business undertaken and carried on by the State Government Insurance Office.

No. 76.] State Government Insurance [1983.

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(4) The State Government Insurance Office may manage and administer self insurance arrangements on behalf of depart- ments, authorities or instrumentalities of the Government, including the arrangement, when prudent, of re-insurance of risks arising therefrom (which re-insurance shall be open to competitive bids within the insurance industry and shall not be directed preferen- tially to the State Government Tnsurance Office), and such self insurance arrangements shall be conducted within the Government Insurance Fund, but where departments, authorities, or instrumentalities of the Government propose to take out or renew insurance, other than through the Govern- ment Insurance Fund, such insurance business shall be open and available for competitive bids without being preferentially directed to the State Government Insurance Office. Where departments, authorities, or instrumentalities take or renew insurance other than through the Government Insur- ance Fund and such insurance is placed with the State Government Insurance Office, brokerage shall be payable by the State Government Insurance Office on a normal commercial basis.

The transactions of each Fund shall be kept separate and distinct.

(5)

(6) No liability or obligation of a Fund shall attach to or affect any other Fund in any manner or to any extent and no asset of a Fund shall be used or applied for a purpose of any other Fund, except that money stand- ing to the credit of a Fund may be applied temporarily for a purpose of another Fund subject to appropriate adjustments being made at intervals not exceeding one year.

(7) All payments in respect of salaries,

allowances, remuneration and other out-

goings expended or incurred in the general

1983.] State Government Insurance [No. 76.

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management of the State Government Insurance Office and the conduct of its business shall be apportioned between and payable from the Funds established by this section in such proportions as the General Manager determines.

(8) In relation to the Trading Fund and the Life Insurance Fund as constituted by this section, the State Government Insurance Office shall supply to the Minister such annual accounts and statements as are required to be supplied by a body corporate (incorporated in Australia) pursuant to the provisions of section 44 of the Insurance Act 1973 of the Commonwealth and Division 4, 5 and 6 of Part III of the Life Insurance Act 1945 of the Commonwealth as if it were a body corporate subject to those Acts.

(9) The Minister, within 14 sitting days of receiving the accounts and statements that are to be supplied in accordance with subsec- tion (8) shall present such accounts and statements to both Houses of Parliament to the extent and in the form that comparable information is customarily published in the annual reports of the Insurance Com- missioner.

Payments to

7B. (1) In lieu of the liability of insurers other than the State Government Insurance	Consolidated Revenue and
of rates etc.
Office to pay tax on income or profits under any Act of the Commonwealth, within 6 months after the end of each successive period of 12 months ending on 30 June, beginning with the period ending on 30 June 1984, one-half of the net profits for the period derived by the State Government Insurance Office from all of its business, as certified to by the Auditor General, shall be paid to the Treasurer for payment into the Consolidated Revenue Fund.

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(2) In determining for the purposes of sub- section (1) of this section the net profit derived by the State Government Insurance Office from any of its business, losses, if any, that may have accrued in a previous year or years may be carried forward, and

(a)	any amounts written off the premises of the State Government Insurance Office; and
(b)	any amounts provided for contin- gencies, bad or doubtful debts, or reserves established pursuant to section 7 (8) (a) of this Act,

are subject to the approval of the Treasurer.

(3) In lieu of the liability of insurers other than the State Government Insurance Office to pay to the Commonwealth sales tax, excise or other taxes or charges, the State Govern- ment Insurance Office, on the assessment of the Treasurer and to the extent that it is exempt from making such payments to the Commonwealth, shall pay an equivalent amount to the Treasurer for payment into the Consolidated Revenue Fund.

(4) Notwithstanding any exemption that may otherwise exist, the State Government Insurance Office shall be liable for and shall pay all local authority rates and charges and all land tax, metropolitan region improve- ment tax, water rates, payroll tax, stamp duties, and all other taxes, fees and charges of a kind imposed by the Government, its instrumentalities or agencies on other insurers trading in Western Australia.

1983.] State Government Insurance [No. 76.

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7C. In relation to the Trading Fund and com=ply with

the Life Insurance Fund constituted under solvency

this Act, the State Government Insurance boa m

Office shall comply with all solvency and requirements.

minimum valuation basis requirements imposed by an Act of the Commonwealth Parliament on any person or body carrying on the business of insurance in Australia.

8. Section 9 of the principal Act is amended by amended.

deleting "ten of the Workers' Compensation Act

1912-1934" and substituting the following-

" 161 of the Workers' Compensation and Assistance Act 1981. ".