INSURANCE (DEPOSITS) AMENDMENT ACT 1976
No. 2 of 1977
An Act to amend the Insurance (Deposits) Act 1932.
BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:—
Short title, &c.
1. (1) This Act may be cited as the Insurance (Deposits) Amendment Act 1976.
(2) The Insurance (Deposits) Act 1932 is in this Act referred to as the Principal Act.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Act not to apply to person to whom Insurance Act 1973 does not apply.
3. Section 5 of the Principal Act is amended by omitting from sub-section (2) the words “This Act does” and substituting the words “The provisions of this Act, other than this section, sub-section (5) of section 26 and section 26a, do”.
Termination of requirement to lodge deposits.
4. Section 9 of the Principal Act is amended—
(a) by omitting from sub-section (1) the word and figure “sub-section (2)” and substituting the words and figures “sub-sections (2) and (2a)”;
(b) by omitting from sub-section (2) the words “This section” and substituting the word and figure “Sub-section (1)”; and
(c) by inserting after sub-section (2) the following sub-section:—
“(2a) Sub-section (1) does not apply to a person authorized under the Insurance Act 1973 to carry on insurance business.”.
Return of deposit on termination of requirement to lodge deposits.
5. Section 26 of the Principal Act is amended—
(a) by omitting from paragraph (a) of sub-section (5) the words “this Act” and substituting the words “section 9 of this Act”;
(b) by omitting from paragraph (a) of sub-section (5) the word “or” (last occurring); and
(c) by inserting after paragraph (b) of sub-section (5) the following word and paragraph:—
“or (c) a person who has deposited money or approved securities with the Treasurer is, at the commencement of this paragraph, authorized, or becomes authorized, under the Insurance Act 1973 to carry on insurance business,”.
Overview
The Insurance (Deposits) Amendment Act 1976 was enacted to amend the Insurance (Deposits) Act 1932, aiming to address certain gaps and update provisions related to insurance deposits. The Act was passed by the Queen, in accordance with the Senate and House of Representatives of the Commonwealth of Australia. A key policy objective of this legislation is to refine and clarify the conditions under which the requirement to lodge deposits is terminated for certain persons authorized under the Insurance Act 1973 to carry on insurance business. This amendment ensures that the provisions of the Act align more closely with the current regulatory framework for insurance activities in Australia.
Scope and Application
The Insurance (Deposits) Amendment Act 1976 amends the Insurance (Deposits) Act 1932, impacting the obligations of persons and entities involved in insurance activities within the Commonwealth of Australia. The Act applies to individuals and entities authorised under the Insurance Act 1973 to carry on insurance business, effectively excluding those not authorised by the latter Act. The legislation modifies the scope of the Insurance (Deposits) Act 1932, altering the conditions under which insurance deposits must be lodged and the circumstances in which such deposits are returned. It introduces specific provisions that exempt authorised insurers from certain deposit requirements, aligning with the broader regulatory framework provided by the Insurance Act 1973. The Act's provisions are applicable nationwide, as it is a Commonwealth Act, ensuring uniformity in the regulation of insurance deposits across Australia.
Key Provisions
The Insurance (Deposits) Amendment Act 1976 (sections 1-5) amends the Insurance (Deposits) Act 1932. Section 3 amends the Principal Act to exclude certain provisions from applying to individuals or entities not covered by the Insurance Act 1973. Section 4 modifies section 9 of the Principal Act, effectively terminating the requirement for certain authorised persons under the Insurance Act 1973 to lodge deposits. Section 5 further amends section 26 of the Principal Act to address the return of deposits under specific circumstances, including for those who are or become authorised under the Insurance Act 1973.
Under this Act, authorised insurers who fall under the purview of the Insurance Act 1973 are exempt from certain obligations of the Principal Act. Specifically, section 3 ensures that provisions of the Principal Act, excluding particular sections, apply only to those entities governed by the Insurance Act 1973. Additionally, section 4 makes it clear that the requirement to lodge deposits under section 9 does not apply to those authorised under the Insurance Act 1973. Furthermore, section 5 outlines the circumstances under which deposits must be returned, including for authorised insurers.
Breach of the provisions outlined in this Act can lead to legal consequences. While the Act itself does not explicitly state penalties for non-compliance, it is reasonable to infer that failing to adhere to the conditions set forth could result in legal actions under the broader framework of the Insurance Act 1973 or other relevant legislation. The penalties for such breaches would typically be governed by the specific provisions of the Insurance Act 1973, which could include fines, imprisonment, or other civil or criminal sanctions as deemed appropriate by the courts.