Overview

The Export Finance and Insurance Corporation Act 1991, enacted by the Parliament of Australia, was designed to provide for the establishment of the Export Finance and Insurance Corporation (EFIC) to facilitate and insure exports. This legislation aims to mitigate the risks associated with exporting goods and services by offering insurance coverage against certain causes of loss. The Export Finance and Insurance Corporation Act 1991 - Declaration of Approved Causes of Loss 2022, issued by Efic, updates the list of approved causes of loss to reflect current risks and circumstances, thereby ensuring that the insurance policies offered remain relevant and adequate. This legislative instrument is subject to disallowance and sunsetting under the Legislation Act 2003, and it replaces the previous declaration from 2021, aligning with the statutory requirement for periodic updates to maintain the efficacy of the insurance offerings.

Scope and Application

The Export Finance and Insurance Corporation Act 1991 – Declaration of Approved Causes of Loss 2022 is a legislative instrument that updates the approved causes of loss for the purposes of the Export Finance and Insurance Corporation Act 1991. This instrument applies to any person or entity seeking to enter into a contract of insurance under section 22 of the Act, specifying the approved causes of loss that must be included in the application. The Act applies nationally across Australia and is subject to disallowance and sunsetting as per the Legislation Act 2003. This instrument replaces the previous Declaration of Approved Causes of Loss 2021 and is a mechanical update without altering existing arrangements or requiring a Regulation Impact Statement. The approved causes of loss declared in this instrument are detailed in Schedule 1, which also repeals the previous declaration. The instrument is compatible with human rights as declared under the Human Rights (Parliamentary Scrutiny) Act 2011, with a full statement of compatibility provided in Attachment A.

Key Provisions

The Export Finance and Insurance Corporation Act 1991 - Declaration of Approved Causes of Loss 2022 primarily operates under section 21(1) of the Act, which allows the Export Finance and Insurance Corporation (EFIC) to declare specified causes of loss as approved. This legislative instrument updates the approved causes of loss, thereby replacing the 2021 version. Section 6 of the Declaration lists these approved causes of loss, which are critical for individuals or entities seeking to insure against risks under section 22 of the Act. The obligations and requirements imposed by this Act primarily concern the application process for insurance contracts. According to the Act, any person applying to EFIC for a contract of insurance must specify an approved cause of loss as outlined in the Declaration. This ensures that the insurance application aligns with the updated causes of loss declared by EFIC. Furthermore, the Declaration sets out definitions in Clause 5 to clarify terms used throughout the document, ensuring consistency and understanding in the application process. In terms of breaches and penalties, the Act does not explicitly state any specific offences, penalties, or civil/criminal consequences for failing to comply with the approved causes of loss. However, any non-compliance might result in the rejection of the insurance application or other procedural consequences as determined by EFIC. Given the mechanical nature of the instrument and its focus on updating approved causes of loss, the emphasis is on ensuring that applications adhere to the declared causes, rather than on punitive measures.