EXPLANATORY STATEMENT.
STATUTORY RULES 1987 NO 340.
INSURANCE REGULATIONS
ISSUED BY THE AUTHORITY OF THE MINISTER ASSISTING THE TREASURER
The Insurance Act 1973 (the Act) established an administrative system for the supervision of general (non-life) insurance business undertakings in Australia by authorised insurance companies.
Section 132 of the Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters that are required or permitted by the Act to be prescribed, or are necessary or convenient to be prescribed, for carrying out or giving effect to the Act.
Section 5 of the Insurance Act 1973 provides for certain exemptions from the provisions of the Act and generally covers State insurance and insurance business carried on by the Commonwealth including the Administration of a Territory. Section 5 also specifically exempts from the provisions of the Act insurance business conducted by a number of bodies such as the Housing Loans Insurance Corporation and the Export Finance Insurance Corporation.
Under paragraph 5(2)(ga), which was inserted into the Act by the Insurance Amendment Act 1983 (No 129 of 1983), the requirements of the Act do not apply to insurance business carried on by “a prescribed company being the business of insuring against the whole or part of any loss in relation to the withdrawable share capital of, and loans (including deposits) to, building societies…” This amendment was made specifically to exempt the National Deposit Insurance Corporation (which is the only national body insuring building society customers against the possibility of loss) from the provisions of the Act.
Regulation 4AA gives effect to the above legislation through the nomination of the National Deposit Insurance Corporation in the Regulations as a prescribed company for the purposes of paragraph 5(2) (ga) of the Act.
The regulation will come into effect on the date of its gazettal.
Insurance and Superannuation Commission CANBERRA ACT