Export Payments Insurance Corporation Act 1970

Overview

The Export Payments Insurance Corporation Act 1970 was enacted to amend the Export Payments Insurance Corporation Act 1956–1966, addressing the need to expand the scope of insurance services provided by the Export Payments Insurance Corporation to include trade with external Territories of Australia. This Act was passed by the Parliament of Australia and received Royal Assent on 17 June 1970, formalising the policy objective of extending insurance coverage to mitigate financial risks associated with trade involving external Territories. The amendments introduced by this Act include adjustments to the definition of terms, the remuneration of the Commissioner and Acting Commissioner, and the Corporation’s authority to insure against risks related to trade with external Territories, while ensuring that such insurance does not duplicate the services provided by commercial insurers.

Scope and Application

The Export Payments Insurance Corporation Act 1970, as an amendment to the Export Payments Insurance Corporation Act 1956–1966, applies to the Corporation that provides export payment insurance, its Commissioner and Acting Commissioner, and generally to any persons or entities engaged in trade with external Territories of the Commonwealth of Australia. The Act operates on a national level within Australia, including its external Territories. The primary exclusion within the Act is that it does not apply to risks that are normally insured with commercial insurers. Additionally, the Act allows for its application to be extended or modified through subordinate instruments, such as regulations or prescribed allowances for the Commissioner and Acting Commissioner. The Act specifies particulars such as salaries and allowances, employment terms, and maximum contingent liabilities, which are subject to adjustments by the Parliament or as prescribed. The Act also introduces the concept of "external Territories," defining them as Commonwealth Territories that are not part of the Commonwealth itself. It provides for the Corporation to enter into insurance contracts for persons conducting business in Australia concerning trade with these external Territories, provided the risks are not those typically covered by commercial insurers. The Act delineates the duties of the Corporation, including an expanded scope to include these external Territories, and amends various sections to reflect the new provisions, including the updating of maximum contingent liabilities and the introduction of prescribed allowances for the Corporation’s officers.

Key Provisions

The Export Payments Insurance Corporation Act 1970 amends the Export Payments Insurance Corporation Act 1956–1966 in several key respects. Most notably, it introduces provisions for insurance contracts that cover trade with external territories (section 13aa). Under section 13aa(2), the Corporation is permitted to insure businesses in Australia against financial losses or monetary detriment arising from trade with external territories. However, it cannot insure against risks typically covered by commercial insurers (section 13aa(3)). The Act also modifies the remuneration provisions for the Commissioner and Acting Commissioner (sections 4 and 5), aligning their salaries with parliamentary provisions and including allowances that are prescribed. The Corporation has expanded duties under the Act, which now require it to conduct business not only within Australia but also with external territories (section 8). This reflects a broader scope of operation for the Corporation. Additionally, the Act revises the definitions section to clarify terms such as "Australia" and "external Territory" (sections 3 and 13aa(1)), ensuring precise application of the Act’s provisions. The amendment to section 16c corrects a reference to "Part" to "Division," presumably to align with other sections of the Act. The Act imposes several obligations on the Corporation. It must adhere to the newly defined scope of operations, which includes insuring against risks related to trade with external territories (section 13aa(2)). The Corporation must also ensure that its insurance contracts do not cover risks that are typically insured by commercial insurers (section 13aa(3)). Additionally, the salaries and allowances of the Commissioner and Acting Commissioner are now subject to parliamentary provisions, with a transitional arrangement until January 1, 1971 (sections 4 and 5). The Corporation must also ensure that it conducts its business within the new maximum contingent liabilities as outlined in section 28. The Act sets out specific offences and penalties for breaches, although it does not explicitly state penalties in the provided sections. Generally, under Australian law, breaches of legislative requirements can result in civil or criminal penalties, including fines and imprisonment, depending on the severity and intent of the breach. For instance, failure to comply with the stipulations regarding insurance contracts, particularly those that should be covered by commercial insurers, could result in legal action against the Corporation or its officers. Additionally, non-compliance with prescribed remuneration terms might lead to disciplinary actions or financial penalties.