INSURANCE (No. 2).
No. 29 of 1932.
An Act to amend the Insurance Act 1932.
[Assented to 30th May, 1932.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title and citation.
1.—(1.) This Act may be cited as the Insurance Act (No. 2) 1932.
(2.) The Insurance Act 1932 is in this Act referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Insurance Acts 1932.
Commencement.
2. This Act shall be deemed to have commenced on the date of the commencement of the Principal Act.
Definitions.
3. Section three of the Principal Act is amended by inserting in the definition of “Insurance business” in sub-section (1.) after the word “includes” the words “workers’ compensation insurance and”.
Deposits in respect of insurance business other than life Insurance.
4. Section eleven of the Principal Act is amended by omitting the words “so that the deposit required under this section shall not exceed in any case Forty thousand pounds” and inserting in their stead the words “the deposit required to be made under this section by any such person shall not, in any case, be less than One thousand pounds or more than Forty thousand pounds”.
Returns, &c. to be furnished.
5. Section sixteen of the Principal Act is amended by inserting after sub-section (3.) the following sub-sections:—
“(3a.) In addition to the returns, balance-sheets or other information referred to in this section, a person carrying on insurance business shall furnish such other returns, balance-sheets or information, and at such times, as are prescribed.
“(3b.) Any person carrying on insurance business who refuses or fails to furnish any return, balance-sheet or other information required by or under this section shall be guilty of an offence.
Penalty: Two hundred pounds.”.
Overview
The Insurance Act (No. 2) 1932 was enacted by the Commonwealth Parliament to amend the Insurance Act 1932, addressing gaps and issues within the regulatory framework for insurance businesses in Australia. This Act seeks to refine and enhance the regulatory oversight of insurance companies, ensuring that the industry operates within a more stringent and clearly defined set of parameters. By amending the definition of "insurance business" to include workers’ compensation insurance, and adjusting the deposit requirements for non-life insurance businesses, the Act aims to strengthen the financial stability and accountability of insurance companies. Additionally, it mandates more comprehensive reporting requirements, ensuring that insurers provide detailed and timely information to regulators, thereby facilitating better oversight and enforcement of insurance laws.
Scope and Application
The Insurance Act (No. 2) 1932 applies to any person or entity carrying on insurance business within the Commonwealth of Australia, encompassing various sectors and industries, including workers' compensation insurance. This Act amends the Insurance Act 1932, thereby impacting all existing and future entities engaged in insurance activities. It imposes requirements on these entities, such as maintaining specific financial deposits and providing detailed returns, balance sheets, and other prescribed information. The Act's jurisdiction spans the entire Commonwealth, ensuring uniform regulation across states and territories. Notably, the Act sets a minimum deposit requirement of one thousand pounds and a maximum of forty thousand pounds for non-life insurance business, while also criminalising the failure to furnish required information, with a penalty of two hundred pounds. The application and enforcement of the Act can be further extended or refined through subordinate instruments, ensuring its provisions are effectively implemented and adapted to changing circumstances.
Key Provisions
The Insurance (No. 2) Act 1932 introduces several amendments to the Insurance Act 1932. Firstly, it expands the definition of "Insurance business" to include workers' compensation insurance (section 3). The Act also revises the deposit requirements for non-life insurance businesses, stipulating that the deposit must be between one thousand pounds and forty thousand pounds (section 4). Furthermore, section 5 adds provisions requiring insurance businesses to provide additional returns, balance-sheets, or other information as prescribed, with a penalty of two hundred pounds for non-compliance.
The Insurance (No. 2) Act 1932 imposes obligations on insurance businesses to furnish detailed financial and operational information to regulatory authorities. Specifically, these businesses must submit additional returns, balance-sheets, or information as prescribed by the Act (section 5). Failure to comply with these information-reporting requirements constitutes an offence, with a penalty of two hundred pounds (section 5). These obligations aim to enhance transparency and oversight of the insurance industry.
Under the Insurance (No. 2) Act 1932, there are specific penalties for non-compliance with the Act's requirements. Any person carrying on insurance business who refuses or fails to furnish any return, balance-sheet, or other information required by or under the Act is guilty of an offence (section 5). The penalty for such an offence is two hundred pounds (section 5). These provisions underscore the importance of compliance with the Act’s stipulations and establish clear consequences for non-compliance.