Insurance Regulations (Amendment)

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Statutory Rules

1976 No. 139

REGULATIONS UNDER THE INSURANCE ACTS 1973.*

I, A DEPUTY OF THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Insurance Acts 1973.

Dated this thirtieth day of June, 1976.

A. R. CUTLER

Deputy of the Governor-General.

By His Excellency’s Command,

ERIC ROBINSON

Minister of State for Post and Telecommunications for and on behalf of the Treasurer.

Amendments of the Insurance Regulations†

1. Regulation 2 of the Insurance Regulations is repealed and the following regulation substituted:—

Interpretation.

“2. In these Regulations, unless the contrary intention appears—

‘ applicant ’ means a body corporate that has made application under section 22 of the Act for an authority to carry on insurance business;

‘ class of insurance business ’ means a class of insurance business specified in regulation 9;

‘ current year ’, in relation to a statement that is required to be furnished by a body corporate under section 44 of the Act, means the financial year of the body corporate in respect of which the statement is so required to be furnished;

‘ first complete financial year ’, in relation to a body corporate, means the first complete financial year of the body corporate that commenced after it was authorized under the Act to carry on insurance business;

‘ prescribed period ’, in relation to a statement that is required to be furnished by a body corporate under section 44 of the Act, means the period from the commencement of its first complete financial year to the end of its current year;

‘ the Act ’ means the Insurance Acts 1973.”.

References to forms.

2. Regulation 3 of the Insurance Regulations is amended by omitting sub-regulation (2).

* Notified in the Australian Government Gazette on 30 June 1976.

† Statutory Rules 1974, No. 141, as amended by Statutory Rules 1976, Nos. 90 and 126.

3. Regulation 22 of the Insurance Regulations is repealed and the following regulation substituted:—

Statements of the cost of meeting claims.

“ 22. (1) This regulation applies in relation to a statement referred to in paragraph 44 (2) (k) of the Act.

“ (2) Where the statement is in respect of the first complete financial year, or a succeeding financial year, of a body corporate it shall consist of such of the returns of particulars referred to in the succeeding sub-regulations of this regulation as are applicable in relation to the body corporate.

“ (3) Where the body corporate is a body corporate incorporated in Australia and has, at any time during the prescribed period, carried on business included in a nominated class of insurance business, the statement shall—

(a) in respect of each State or Territory in which the body corporate carried on during that period business included in that class, include a separate return of particulars in accordance with Form 11 relating to the gross cost to the body corporate during that period of meeting claims made against it in respect of business included in that class, being business that has been carried on, whether before or during the prescribed period, in that State or Territory;

(b) in respect of each State or Territory in which the body corporate carried on during that period business included in that class, include a separate return of particulars in accordance with Form 11 relating to the net cost to the body corporate during that period of meeting claims made against it in respect of business included in that class, being business that has been carried on, whether before or during the prescribed period, in that State or Territory;

(c) include a separate return of particulars in accordance with Form 11 relating to the gross cost to the body corporate during that period of meeting claims made against it in respect of business included in that class, being business that has been carried on, whether before or during that period, outside Australia;

(d) include a separate return of particulars in accordance with Form 11 relating to the net cost to the body corporate during that period of meeting claims made against it in respect of business included in that class, being business that has been carried on, whether before or during that period, outside Australia;

(e) include a separate return of particulars in accordance with Form 11 relating to the cost to the body corporate during that period of meeting claims made against it in respect of excess of loss reinsurance business included in that class, being business that has been carried on, whether before or during that period, in Australia;

(f) include a separate return of particulars in accordance with Form 11 relating to the cost to the body corporate during that period of meeting claims made against it in respect of excess of loss reinsurance business included in that class, being business that has been carried on, whether before or during that period, outside Australia.

“ (4) Where the body corporate is a body corporate incorporated outside Australia and has, at any time during the prescribed period, carried on in Australia business included in a nominated class of insurance business, the statement shall—

claims made against it in respect of business included in that class, being business that has been carried on, whether before or during the prescribed period, in that State or Territory;

(c) include a separate return of particulars in accordance with Form 11 relating to the cost to the body corporate during that period of meeting claims made against it in respect of excess of loss reinsurance business included in that class, being business that has been carried on, whether before or during that period, in Australia.

“ (5) Each return of particulars referred to in sub-regulation (3) shall specify the nominated class of insurance business to which it relates and shall be marked as follows:—

(a) a return of particulars referred to in paragraph 3 (a) shall be marked ‘ Part A ’;

(b) a return of particulars referred to in paragraph 3 (c) shall be marked ‘ Part B ’;

(d) a return of particulars referred to in paragraph 3 (d) shall be marked ‘ Part D ’;

(e) a return of particulars referred to in paragraph 3 (e) shall be marked ‘ Part E ’;

(f) a return of particulars referred to in paragraph 3 (f) shall be marked ‘ Part F ’.

“ (6) Each return of particulars referred to in sub-regulation (4) shall specify the nominated class of insurance business to which it relates and shall be marked as follows:—

(a) a return of particulars referred to in paragraph (4) (a) shall be marked ‘ Part A ’;

(b) a return of particulars referred to in paragraph (4) (b) shall be marked ‘ Part C ’;

“ (7) Where a return of particulars is required to be furnished to the Commissioner in respect of the first complete financial year only of a body corporate, columns (3), (8) and (9) of the Form are not required to be completed.

“ (8) The body corporate, in specifying the numbers of reported claims in column (1), or the numbers of reported claims outstanding in column (4), of a return of particulars shall comply with such of the following provisions as are applicable in accordance with sub-regulations (3), (4) and (7):—

(a) in specifying the numbers in each return of particulars referred to in paragraph (3) (a), (3) (b), (3) (c), (3) (d), (4) (a) or (4) (b), inward facultative reinsurance claims reported to the body corporate during the current year and reported inward facultative reinsurance

claims outstanding as at the end of the current year shall be included and inward treaty reinsurance claims reported to the body corporate during the current year and reported inward treaty reinsurance claims outstanding as at the end of the current year shall not be included;

(b) in specifying the numbers to be entered in each return of particulars referred to in sub-regulation (3) or (4), the numbers of all claims in respect of which amounts have been, partly or wholly, recovered, or were, partly or wholly, recoverable, in the current year shall be included.

“ (9) The body corporate, in calculating the amounts to be entered in the several columns of a return of particulars, shall comply with such of the following provisions as are applicable in accordance with sub-regulations (3), (4) and (7):—

(a) in calculating the amounts to be entered in the columns numbered (2), (5) and (6) in each return of particulars referred to in paragraph (3) (a), (3) (b), (3) (c), (3) (d), (4) (a) or (4) (b), the amounts of inward facultative reinsurance claims paid during the current year by, or in respect of which provision has been made as at the end of the current year by, the body corporate shall be included and the amounts of inward treaty reinsurance claims paid during the current year by, or in respect of which provision has been made as at the end of the current year by, the body corporate shall not be included;

(b) in calculating the amounts to be entered in the column numbered (3) in each return of particulars referred to in paragraph (3) (a), (3) (b), (3) (c), (3) (d), (4) (a) or (4) (b), the amounts of inward facultative reinsurance claims paid by the body corporate from the commencement of the first complete financial year up to the end of the financial year immediately preceding the current year and the amounts of inward facultative reinsurance claims in respect of which provision was made by the body corporate at the end of the financial year immediately preceding the current year shall be included and the amounts of inward treaty reinsurance claims paid by the body corporate from the commencement of the first complete financial year up to the end of the financial year immediately preceding the current year and the amounts of inward treaty reinsurance claims in respect of which provision was made by the body corporate at the end of the financial year immediately preceding the current year shall not be included;

(c) in calculating the amounts to be entered in the column numbered (2) in each return of particulars, the amounts of claims paid by the body corporate during the current year shall be reduced by the amounts recovered during the current year by the body corporate through salvage and other means of recovery (not including reinsurance);

(d) in calculating the amounts to be entered in the column numbered (3) in each return of particulars, the amounts of claims paid by the body corporate from the commencement of the first complete financial year up to the end of the financial year immediately preceding the current year shall be reduced by the amounts recovered during that period by the body corporate through salvage and other means of recovery (not including reinsurance);

(e) in calculating the amounts to be entered in the columns numbered (2), (5) and (6) in each return of particulars referred to in paragraphs

(3) (a), (3) (c) or (4) (a), amounts recovered or recoverable during the current year by the body corporate under outward reinsurance arrangements shall not be deducted;

(f) in calculating the amounts to be entered in the column numbered (3) in each return of particulars referred to in paragraph (3) (a), (3) (c) or (4) (a), amounts recovered or recoverable by the body corporate under outward reinsurance arrangements during the period from the commencement of the first complete financial year up to the end of the financial year immediately preceding the current year shall not be deducted;

(g) in calculating the amounts to be entered in the columns numbered (2), (5) and (6) in each return of particulars referred to in paragraph (3) (b), (3) (d) or (4) (b), amounts recovered or recoverable during the current year by the body corporate under outward reinsurance arrangements (other than retrocessions in respect of inward treaty reinsurance arrangements) shall be deducted;

(h) in calculating the amounts to be entered in the column numbered (3) in each return of particulars referred to in paragraph (3) (b), (3) (d) or (4) (b), amounts recovered or recoverable by the body corporate under outward reinsurance arrangements (other than retrocessions in respect of inward treaty reinsurance arrangements) during the period from the commencement of the first complete financial year up to the end of the financial year immediately preceding the current year shall be deducted;

(j) in calculating the amounts to be entered in the columns numbered (2), (5) and (6) in each return of particulars referred to in paragraphs (3) (e), (3) (f) or (4) (c), amounts recovered or recoverable during the current year by the body corporate under outward reinsurance arrangements shall be deducted;

(k) in calculating the amounts to be entered in the column numbered (3) in each return of particulars referred to in paragraphs (3) (e), (3) (f) or (4) (c), amounts recovered or recoverable by the body corporate under outward reinsurance arrangements during the period from the commencement of the first complete financial year up to the end of the financial year immediately preceding the current year shall be deducted.

“ (10) For the purposes of this regulation, each of the following classes of business is a nominated class of insurance business:—

(a) comprehensive motor vehicle insurance;

(b) compulsory third party motor vehicle insurance;

(d) public liability insurance.”.

The Schedule.

4. The Schedule to the Insurance Regulations is amended by omitting Form 11 and substituting the form in the Schedule to these Regulations.

THE SCHEDULE

Form 11

Australia

Insurance Acts 1973

STATEMENT OF THE COST OF MEETING CLAIMS

Name of Body Corporate................................................

Nominated Class of Business.......................................

Financial Year commencing on / /

State or Territory (where applicable)................................... and ending on / /

Financial years	Number of claims reported in current year divided according to the respective financial years in which causes giving rise to claims occurred	Amount of claims paid during current year divided according to the respective financial years in which causes giving rise to claims occurred	Total amount of claims paid from commencement of first complete financial year up to end of financial year immediately preceding current year divided according to the respective financial years in which causes giving rise to claims occurred	Number of reported claims outstanding at end of current year divided according to the respective financial years in which causes giving rise to claims occurred	Provision for claims outstanding at the end of the current year divided according to the respective financial years in which causes giving rise to claims occurred and according to whether claims were reported or unreported		Total of—	Total of—	Total of—
							(a) claims paid during the prescribed period; and	(a) claims paid from commencement of first complete financial year up to end of financial year immediately preceding current year; and	(a) claims paid during the prescribed period; and
							(a) claims paid during the prescribed period; and		(b) provision for outstanding claims at end of current year, less total of—
							(b) provision for outstanding claims at end of current year ( (2)+(3) + (5) + (6) )
									(c) claims paid from commencement of first complete financial year up to end of financial year immediately preceding current year; and
									(d) provision for outstanding claims at end of financial year immediately preceding current year ((7)–(8))
								(b) provision for outstanding claims at end of financial year immediately preceding current year
					Reported claims	Unreported claims
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
	$	$	$	$	$	$	$	$	$
Current year / / to / /
Year immediately preceding current year / / to / /
Year next but one immediately preceding current year / / to / /
Year next but two immediately preceding current year / / to / /
Year next but three immediately preceding current year / / to / /
Year next but four immediately preceding current year / / to / /
Year next but five immediately preceding current year / / to / /
All earlier years................
Total..................
Signature of Director, Secretary.............. or Agent / /19 .					Deduct entry in column (7) in respect of current year
					Net increase or decrease in total cost of meeting claims

Overview

The Statutory Rules 1976 No. 139, enacted under the Insurance Acts 1973, serve to amend the Insurance Regulations, thereby addressing the need for more comprehensive and precise reporting requirements for insurance companies operating in Australia. The regulations were enacted by a Deputy of the Governor-General, acting on the advice of the Federal Executive Council. The objective of these regulations is to ensure that insurance companies provide detailed and structured information regarding the cost of meeting claims, which is critical for regulatory oversight and consumer protection. By specifying the format and content of the claims cost statements, the regulations aim to enhance transparency and accountability within the insurance industry. These regulations are essential for maintaining the integrity and stability of the insurance market in Australia.

Scope and Application

The Insurance Acts 1973, as amended by Statutory Rules 1976 No. 139, governs the insurance industry in Australia. These regulations apply to entities that have made an application under section 22 of the Act for an authority to carry on insurance business. The regulations detail specific requirements for the reporting of the cost of meeting claims, which include entities incorporated both within and outside Australia. They necessitate the submission of detailed statements about the gross and net costs incurred in meeting claims for various classes of insurance business, including comprehensive motor vehicle insurance, compulsory third party motor vehicle insurance, employer’s liability insurance, and public liability insurance. The regulations distinguish between costs related to business conducted in Australia and those related to business conducted outside Australia. The geographic scope of these regulations is national, encompassing all states and territories within Australia, and they apply to both Australian and foreign insurance companies operating in Australia. Subordinate instruments such as forms and schedules, like Form 11 in the Schedule, further detail the reporting requirements and structure of the statements to be submitted.

Key Provisions

The main operative sections of the Insurance Regulations 1976 (Statutory Rules 1976 No. 139) provide detailed requirements for the preparation and submission of specific financial statements by authorised insurance corporations. Regulation 2 establishes definitions for key terms such as 'applicant', 'class of insurance business', 'current year', 'first complete financial year', 'prescribed period', and 'the Act'. Regulation 22 outlines the specific contents and format of the statement of the cost of meeting claims, which must be submitted by a body corporate for its first complete financial year and each succeeding financial year. This statement requires the submission of separate returns for different classes of insurance business, specifying both gross and net costs, as well as the costs associated with excess of loss reinsurance, for both domestic and international operations. The obligations imposed by these regulations on insurance corporations include the timely and accurate preparation and submission of the specified statements, which must be completed in accordance with the detailed requirements set out in the regulations. For instance, Regulation 22(3) and (4) detail the specific information to be included in each return, such as the numbers of reported claims, amounts paid, and provisions made, depending on whether the claims relate to facultative or treaty reinsurance, and whether they pertain to business conducted in Australia or overseas. Additionally, the regulations dictate the format and marking of these returns (e.g., Parts A to F), ensuring that the information is clearly delineated and easily accessible for review by regulatory authorities. Failure to comply with these regulatory requirements can lead to significant consequences. While the specific penalties are not explicitly stated within the statutory rules themselves, non-compliance with regulatory obligations under the Insurance Acts 1973 can result in enforcement actions by the relevant authorities, including fines and other sanctions. In more severe cases, persistent non-compliance could potentially lead to the revocation of the insurance corporation’s authority to carry on insurance business in Australia, thereby impacting their ability to operate legally within the country.

Area of Law: Insurance Law
Instrument: Regulation
Concepts: Definitions & Interpretation; Reporting & Disclosure Obligations; Regulatory Standards

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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