Statutory Rules
1976 No. 149
REGULATION UNDER THE INSURANCE (DEPOSITS) ACT 1932.*
WHEREAS it is provided by sub-section (1) of section 9 of the Insurance (Deposits) Act 1932, amongst other things, that, subject to sub-section (2) of that section, a person shall not carry on insurance business in the Commonwealth unless he has lodged a deposit with the Treasurer as required by that Act:
AND WHEREAS by sub-section (2) of that section it is provided that that section does not apply to a person commencing to carry on insurance business in Australia after the expiration of the period of two years after the date of commencement of section 21 of the Insurance Act 1973 or, where a longer period, not exceeding five years after that date, is prescribed for the purposes of that section before the expiration of the first-mentioned period, after the expiration of that longer period:
AND WHEREAS section 21 of the Insurance Act 1973 commenced on 1 August 1974:
AND WHEREAS it is desirable that such a longer period be prescribed:
NOW THEREFORE I, the Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulation under the Insurance (Deposits) Act 1932.
Dated this twenty-second day of July, 1976.
JOHN R. KERR
Governor-General.
By His Excellency's Command,
ERIC ROBINSON
Minister of State for Post and Telecommunications for and on behalf of the Treasurer.
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Amendment of the Insurance (Deposits) Regulations†
After regulation 6 of the Insurance (Deposits) Regulations the following regulation is inserted:—
Prescribed period for purposes of section 9 of the Act.
“ 6a. The period for the purposes of section 9 of the Act, being the period after the expiration of which that section does not apply to a person commencing to carry on insurance business in Australia, is a period of 5 years after 1 August 1974 (being the date of commencement of section 21 of the Insurance Act 1973).”.
* Notified in the Australian Government Gazette on 26 July 1976.
† Statutory Rules 1961, No. 71, as amended by Statutory Rules 1963, No. 127; and 1974. No. 142.
Overview
Statutory Rules 1976 No. 149, made under the Insurance (Deposits) Act 1932, was enacted to address the need for a specific period during which certain individuals could carry on insurance business without lodging a deposit as required by the Act. The Insurance (Deposits) Act 1932 originally mandated that individuals must lodge a deposit with the Treasurer before carrying on insurance business in the Commonwealth, with an exception for those commencing business after a certain period post the commencement of section 21 of the Insurance Act 1973. The regulation was introduced to prescribe a longer period, not exceeding five years, after which the exception would apply. This was achieved by inserting a new regulation, 6a, into the Insurance (Deposits) Regulations, which set the period for the exception at five years following 1 August 1974, the date of commencement of section 21 of the Insurance Act 1973. The regulation was made by the Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council.
Scope and Application
The Insurance (Deposits) Regulations 1976, made under the Insurance (Deposits) Act 1932, specify the conditions and timeframes for the deposit requirements for individuals and entities entering the insurance business in Australia. This regulation applies to any person or entity seeking to carry on insurance business in the Commonwealth, imposing a mandatory deposit requirement unless exempted by the specific provisions of the Act. Notably, the regulation delineates a five-year period following the commencement of section 21 of the Insurance Act 1973, which took effect on 1 August 1974, during which new entrants to the insurance business are not required to lodge a deposit. This regulation thus serves to balance the entry of new businesses into the insurance sector while maintaining oversight through financial deposits for those outside the specified exemption period.
Key Provisions
The Statutory Rules 1976 No. 149 under the Insurance (Deposits) Act 1932 primarily introduces a new regulation that extends the period for which section 9 of the Act does not apply to a person commencing insurance business in Australia. Regulation 6a specifies that this period is five years following 1 August 1974, which is the date of commencement of section 21 of the Insurance Act 1973. This regulation is designed to provide a grace period for new entrants to the insurance business, exempting them from the requirement to lodge a deposit with the Treasurer during this time.
The Act imposes several obligations on individuals or entities intending to carry on insurance business in Australia. Firstly, section 9(1) mandates that any person must lodge a deposit with the Treasurer unless exempted by section 9(2). This exemption applies to those who commence their business after the specified period, which, as per the new regulation, is five years from 1 August 1974. The Act ensures that only those who start their operations beyond this timeframe are not required to lodge a deposit. This regulation is intended to provide a transitional period for new market entrants, allowing them to establish their business without the immediate financial burden of a deposit.
Failure to comply with the provisions of the Insurance (Deposits) Act 1932 can lead to significant consequences. While the specific offences and penalties are not detailed in the provided text, it is implicit that carrying on insurance business without the requisite deposit or in contravention of the Act’s provisions could result in legal action. Typically, breaches of such regulatory requirements could lead to civil penalties or criminal charges, depending on the severity and intent of the breach. The exact penalties would be governed by other sections of the Act or related legislation, but could include fines or other sanctions.