Defence Service Homes Insurance Scheme (Statement of Conditions) Variation 2019

Administered by Department of Veterans' Affairs

Legislation au F2019L00902 In force Legislative Instrument

Legislation content

 

EXPLANATORY STATEMENT

 

Defence Service Homes Insurance Scheme (Statement of Conditions) Variation 2019

 

EMPOWERING PROVISION

Section 38A of the Defence Service Homes Act 1918 (the Act).

 

PURPOSE

The attached legislative instrument (Instrument 2019 No. M27) varies the legislative instrument under the Act known as the Statement of Conditions by revoking the Defence Service Homes Insurance Scheme (Statement of Conditions) Variation 2016 (F2016L00553)(revoked instrument) and replacing it with a new Statement of Conditions (new Statement of Conditions).

The Australian Government provides domestic building insurance under the Act to eligible veterans and Australian Defence Force personnel through the Defence Service Homes Insurance Scheme (DSHIS). The policy issued under the DSHIS is a comprehensive building insurance policy.

The purpose of the Statement of Conditions under section 38A of the Act is to set out the risks against which insurance is provided, including general exclusions, and other terms and conditions that are to comprise the policy of insurance under the DSHIS. Australian law requires insurers to include the terms and conditions of an insurance product in a document, known as the Product Disclosure Statement (PDS). The Statement of Conditions operates in a similar way to a PDS.

In accordance with the new Statement of Conditions, insurance cover provided under the DSHIS will continue unchanged. The new Statement of Conditions is neutral in terms of its impact on policy holders. Policy holders will not be worse off on the commencement of this instrument.

However, unlike the Statement of Conditions under the revoked instrument, the new Statement of Conditions does not set out customer information of a general nature. This information is provided directly to policy holders.

The new Statement of Conditions will have effect from 1 July 2019.

 

RETROSPECTIVITY

 

None.

 

CONSULTATION

Section 17 of the Legislation Act 2003 requires a rule-maker to be satisfied that any consultation that is considered appropriate and reasonably practicable to undertake, has been undertaken.

The new Statement of Conditions set out the risks against which insurance is provided, including general exclusions, and other terms and conditions that are to comprise a policy of insurance under the DSHIS. In accordance with the new Statement of Conditions, insurance cover under the DSHIS will be maintained at existing levels. The new Statement of Conditions is neutral in terms of its impact on policy holders.

Consultation in respect of the replacement Statement of Conditions has been carried out within the DSHIS management team.  Given no policy holder will be worse off under the new Statement of Conditions, further consultation was not considered necessary or appropriate.

In these circumstances, it is considered that the requirements of section 17 of the Legislation Act 2003 have been met.

 

DOCUMENTS INCORPORATED BY REFERENCE

None.

 

REGULATORY IMPACT

Nil.

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

The attached legislative instrument does not engage a human right. It provides a legislative template for the standard terms and conditions that are to comprise a policy of insurance under the DSHIS and operates in a similar way to a PDS.

As the attached instrument does not engage a human right, it is considered to be compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

 

Mark Cormack

Deputy Secretary Policy and Programs

Delegate for the Minister for Veterans and Defence Personnel

Rule Maker

 

FURTHER EXPLANATION OF PROVISIONS

 

Attachment A

 


Attachment A

FURTHER EXPLANATION OF PROVISIONS 

 

Section 1

This section sets out the name of the instrument - the Defence Service Homes Insurance Scheme (Statement of Conditions) Variation 2019.

 

Section 2

This section provides the instrument commences on 1 July 2019.

 

Section 3

This section provides the attached instrument is made under section 38A of the Defence Service Homes Act 1918.

 

Section 4

This section provides the Defence Service Homes Insurance Scheme (Statement of Conditions) Variation 2016 (F2016L00553) is revoked. As a result, the variations to the Statement of Conditions cease to have any effect on 1 July 2019.

 

Section 5

This section is a savings provision and ensures that any right to a payment under the Statement of Conditions that was in force immediately before the commencement of this instrument continues on and after that commencement. The legal effect of this section is to specifically preserve any such right until the payment is made.

The note to this section provides that subsection 38A(4) of the Act provides that the Minister shall not vary the Statement of Conditions so as to remove the right of a person to receive a payment to which the person had become entitled before the variation. 

 

Section 6

This section provides the Statement of Conditions set out in the Schedule applies for the purposes of Part VI of the Defence Service Homes Act 1918. This means the Statement of Conditions set out in the Schedule is in force on and after the commencement of this instrument. The Statement of Conditions is only relevant to Part VI of the Defence Service Homes Act 1918.

 

Schedule - Statement of Conditions

The Schedule contains the Statement of Conditions. The Statement of Conditions sets out the risks against which insurance is provided, including general exclusions, and other terms and conditions that are to comprise a policy of insurance under the DSHIS. The risks are loss or damage to a home; accidental loss or damage; fusion of electrical motors; owner’s or occupiers’s legal liability; strata title homes and death of the insured or their family. General exclusions include failing to keep the home or site in good repair and condition; defects in structure, design, work done or materials used on the home or at the site; wear and tear; any war or war like activities and any act of terrorism.

 

Overview

The Defence Service Homes Insurance Scheme (Statement of Conditions) Variation 2019 was enacted to update the terms and conditions of the Defence Service Homes Insurance Scheme (DSHIS) under the Defence Service Homes Act 1918. The purpose of this legislative instrument was to replace the previous Statement of Conditions with a new one, effective from 1 July 2019, while maintaining the insurance cover provided under the DSHIS at existing levels. This revision ensures that policyholders are not negatively impacted, but it also removes general customer information from the Statement of Conditions, which is now provided directly to policyholders. The enactment body responsible for this variation is the Australian Government, with the policy objective being to align the DSHIS with current insurance standards while ensuring that the rights and benefits of existing policyholders are preserved. The new Statement of Conditions maintains the integrity and coverage of the DSHIS, providing a comprehensive building insurance policy for eligible veterans and Australian Defence Force personnel. By revoking the previous Statement of Conditions and introducing a new one, the legislation ensures that the DSHIS remains effective and relevant, providing the necessary insurance protections without imposing any additional burdens on policyholders. The changes reflect an ongoing commitment to support and protect the housing interests of those who have served in the defence forces.

Scope and Application

The Defence Service Homes Insurance Scheme (Statement of Conditions) Variation 2019 applies to the Defence Service Homes Insurance Scheme (DSHIS), which provides insurance for eligible veterans and Australian Defence Force personnel under the Defence Service Homes Act 1918. This Act applies nationally across Australia and sets out the terms and conditions for the insurance policy offered under the DSHIS. The legislative instrument replaces the previous Statement of Conditions set out in the Defence Service Homes Insurance Scheme (Statement of Conditions) Variation 2016, which was revoked by this new instrument. The new Statement of Conditions, effective from 1 July 2019, specifies the risks covered, exclusions, and other policy terms, operating similarly to a Product Disclosure Statement. Importantly, the new conditions do not disadvantage existing policyholders, and no further consultation was deemed necessary as the changes are neutral. This instrument does not engage any human rights and is considered compatible with the international human rights instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The main operative sections of the Defence Service Homes Insurance Scheme (Statement of Conditions) Variation 2019 (F2019L00902) include sections 1, 2, 3, 4, 5, and 6, as well as the Schedule. Section 1 names the instrument, section 2 provides the commencement date of 1 July 2019, section 3 states that the instrument is made under section 38A of the Defence Service Homes Act 1918, section 4 revokes the Defence Service Homes Insurance Scheme (Statement of Conditions) Variation 2016, section 5 ensures the preservation of any rights to payment under the Statement of Conditions in force before the instrument's commencement, and section 6 applies the new Statement of Conditions for the purposes of Part VI of the Defence Service Homes Act 1918. The Schedule contains the new Statement of Conditions, which sets out the risks, exclusions, and terms and conditions of the insurance policy under the Defence Service Homes Insurance Scheme (DSHIS). The Defence Service Homes Insurance Scheme (Statement of Conditions) Variation 2019 imposes obligations and requirements on the parties involved in the DSHIS. The new Statement of Conditions sets out the risks against which insurance is provided, including general exclusions, and other terms and conditions that comprise a policy of insurance under the DSHIS. The new Statement of Conditions is neutral in terms of its impact on policyholders, ensuring that no policyholder will be worse off as a result of this instrument. Additionally, the new Statement of Conditions does not set out customer information of a general nature, which is provided directly to policyholders. There are no specific offences, penalties, or civil/criminal consequences mentioned in the Defence Service Homes Insurance Scheme (Statement of Conditions) Variation 2019. However, any breach of the terms and conditions set out in the new Statement of Conditions could potentially lead to a claim being denied by the insurer, as the policyholder would not be covered for the risk or circumstance in question. The new Statement of Conditions is designed to ensure that insurance cover under the DSHIS is maintained at existing levels and that the rights of policyholders are protected.

Legal classification tags

Area of Law
Insurance Law
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Transitional Provisions
Reporting & Disclosure Obligations

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.