Life Assurance Companies Act 1905

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LIFE ASSURANCE COMPANIES.

No. 12 of 1905.

An Act relating to Assurance on the Lives of Children by Life Assurance Companies or Societies.

[Assented to 23rd November, 1905.]

BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Interpretation.

1. In this Act unless the context or subject-matter otherwise indicates—

“Life assurance company” means any company, society, or body of persons (not being a friendly society) corporate or unincorporate associated together with the object either solely or amongst others of carrying on and in fact lawfully under the laws of the State carrying on the business of granting policies upon lives or entering into contracts for future endowments by way of annuity or otherwise;

“Registrar of Deaths” means any person authorized by the law of any State relating to the registration of deaths to issue certificates of death in such State;

“Register of Deaths” means any Register kept in any State under any law for the registration of deaths for the time being in force in such State;

“Registered medical practitioner” means any person who, under the law of any State, is a legally qualified medical practitioner in such State;

“Friendly society” means any society registered under any law in force in any State providing for the registration of friendly or benefit societies.

Limitation of amount payable on death of children.

2. A life assurance company may contract to pay on the death of a child between the respective ages mentioned in the Schedule hereto any sum of money which, added to any amount payable on the death of that child by any other life assurance company or by any friendly society, does not exceed the amount specified in such Schedule as payable on the death of the child between such ages, and every policy issued under and by virtue of the provisions of this section shall set forth that the total sum or sums recoverable on the death of any child as assurance moneys or other benefits from any one or more life assurance companies or friendly societies shall not exceed the amount so specified in such Schedule.

Person to whom payment may be made.

3. A life assurance company shall not pay any sum on the death of a child under ten years of age except to the parent of the child or to the personal representative of the parent, and shall not pay any such sum except upon the production by the parent or his personal representative of a certificate of death issued by a Registrar of Deaths and containing the particulars mentioned in this Act.

Certificates of death.

4.—(1.) Where application is made for a certificate of the death of a child for the purpose of obtaining a sum of money from a life assurance company, the name of the company and the sum sought to be obtained therefrom shall be stated to the Registrar of Deaths.

(2.) The Registrar of Deaths shall write on or at the foot of the certificate the words “To be produced to the society or company (naming the same) said to be liable for the payment of the sum of ” (stating the same).

(3.) All certificates of the same death shall be numbered in consecutive order.

(4.) No Registrar of Deaths shall issue any one or more certificates of death of a child under the age of ten years for the payment in the whole of any sum of money exceeding the amount for which such child may be insured under section two hereof.

(5.) No Registrar of Deaths shall issue any such certificate unless—

(a) the cause of death has been previously entered in the Register of Deaths on the certificate of a coroner or of a registered medical practitioner who attended the deceased child during its last illness; or

(b) a certificate of the probable cause of death under the hand of a registered medical practitioner is produced to him; or

(6.) A life assurance company to which is produced a certificate which does not purport to be the first of the death of a child under the age of ten years shall before paying any money thereon inquire whether any and what sums of money have been paid on the same death by any other life assurance company or friendly society.

Saving as to insurable interests.

5. Nothing in this Act shall apply—

(a) to any insurance on the life of a child of any age when the person insuring has an interest in the life of the person insured;

(b) to any insurance effected by a person in loco parentis as an advancement of the child in any case in which the amount payable to such person on the death of the child under twenty-one years of age does not exceed the total amount actually paid by such person in respect of premiums on such insurance, together with interest on such premiums at a rate not exceeding four per centum per annum.

Offences and penalties.

6.—(1.) It shall be an offence under this Act—

(a) if a life assurance company pays money on any policy taken out after the passing of this Act on the death of a child under ten years of age otherwise than as provided by this Act; or

(b) if a parent or personal representative of a parent claiming money on the death of a child produces a certificate of the death other than as provided in this Act to the life assurance company from which the money is claimed, or produces a false certificate or one fraudulently obtained or in any way attempts to defeat the provisions of this Act; or

(c) if a policy issued under and by virtue of the provisions of section two shall not set forth that the total sum or sums recoverable on the death of any child as assurance moneys or other benefits from any one or more life assurance companies or friendly societies shall not exceed the amount so specified in the Schedule hereto.

Penalty: Forty-five pounds.

(2.) All offences and penalties under this Act may be prosecuted and recovered before any court of summary jurisdiction in the State in which such offence was committed.

(3.) The provisions of the law relating to summary proceedings before justices in force in the State where proceedings are instituted shall apply to the prosecution of offences under this Act before a court of summary jurisdiction in such State and an appeal shall lie from any such conviction or order of dismissal to the court, and in the manner provided by the law of the State where such conviction or order is made for appeals from convictions or orders of dismissal.

(4.) An offence committed by a life assurance company shall be deemed to have been committed at the principal office of such company in the State where such offence is committed.

Short title.

7. This Act may be cited as the Life Assurance Companies Act 1905.

THE SCHEDULE.

Amount payable in case of death of child between ages—

	£
Birth and one year......................................	5
One year and two years...................................	6
Two years and three years.................................	7
Three years and four years.................................	8
Four years and five years.................................	9
Five years and six years..................................	10
Six years and seven years.................................	28
Seven years and eight years................................	35
Eight years and nine years.................................	40
Nine years and ten years..................................	45

Overview

The Life Assurance Companies Act 1905 was enacted to address the need for regulating the payment of benefits by life assurance companies in the event of a child's death. This legislation was introduced to ensure that the total sum payable by all life assurance companies and friendly societies combined did not exceed specified amounts for children of certain ages, thereby preventing excessive payouts. The Act was passed by the Commonwealth Parliament and its primary objective is to provide a structured and regulated framework for life assurance companies to operate within when it comes to child-related insurance policies. The Act outlines the definition of terms such as "life assurance company," "Registrar of Deaths," and "registered medical practitioner" to ensure clarity and consistency in the application of the law. It specifies the maximum amount payable on the death of a child, contingent on the child's age, and mandates that all policies must clearly state the total recoverable sum. Additionally, the Act requires that payments for children under ten years of age be made only to the child's parent or personal representative, and only upon the production of a valid death certificate. Failure to comply with these provisions constitutes an offence, with penalties up to forty-five pounds, enforceable in the relevant state's summary jurisdiction courts.

Scope and Application

The Life Assurance Companies Act 1905 is a Commonwealth legislation that applies to life assurance companies, which are defined as any company, society, or body of persons associated together with the object of carrying on the business of granting policies on lives or entering into contracts for future endowments. The Act governs the payment of money on the death of a child insured by these companies, setting forth limitations on the amount payable based on the child's age as outlined in the Schedule. The Act also imposes specific requirements on the issuance and production of death certificates by Registrars of Deaths, ensuring that these documents are correctly completed and used for the intended purpose. Importantly, the Act specifies that it does not apply to insurances where the insurer has an insurable interest in the child's life or to certain advancements made by a person in loco parentis, provided the amount payable does not exceed the total premiums paid with interest. Offences and penalties are detailed, with offences being prosecutable under summary jurisdiction in the relevant state. The Act is comprehensive in its jurisdictional reach across the Commonwealth of Australia, as it applies to all life assurance companies operating within its territories.

Key Provisions

The Life Assurance Companies Act 1905 outlines specific provisions regarding life assurance policies for children. Section 2 of the Act allows life assurance companies to contract to pay a sum of money on the death of a child, provided the total amount payable from all policies does not exceed the amount specified in the Schedule attached to the Act (s.2). This limitation ensures that the total benefits do not surpass a set amount depending on the child's age. Section 3 specifies that a life assurance company can only pay a death benefit to the child's parent or the personal representative of the parent, and this payment is contingent on the presentation of a valid death certificate issued by a Registrar of Deaths (s.3). Section 4 details the requirements for obtaining a death certificate, including the necessity of the Registrar of Deaths verifying the cause of death through a coroner, a registered medical practitioner, or other satisfactory evidence (s.4). The Act imposes several obligations on life assurance companies. Firstly, they must ensure that the total amount payable from all policies on the death of a child does not exceed the limits set out in the Schedule (s.2). Secondly, they must refuse to make a payment unless the parent or personal representative presents a valid death certificate issued by the Registrar of Deaths (s.3). Thirdly, if a death certificate is presented that is not the first issued for the child's death, the company must verify if any other sums have been paid by other companies or societies before making a payment (s.4). Additionally, the Act imposes obligations on parents or personal representatives to produce valid death certificates when claiming benefits (s.3). Section 6 of the Act delineates various offences and the associated penalties. It is an offence for a life assurance company to pay a benefit on a policy taken out after the Act's passing unless it complies with the Act's provisions (s.6(1)(a)). Similarly, it is an offence for a parent or personal representative to produce an invalid or fraudulent death certificate or to attempt to circumvent the Act's provisions (s.6(1)(b)). Another offence is the failure to specify the limitation on total recoverable sums in the policy document as required by section 2 (s.6(1)(c)). The penalty for any of these offences is a fine of forty-five pounds (s.6(1)). Offences under this Act can be prosecuted before any court of summary jurisdiction in the State where the offence was committed, with the relevant State's summary proceedings law applying to such prosecutions (s.6(2)-(4)).

Area of Law: Insurance Law
Instrument: Act
Concepts: Definitions & Interpretation; Offence Provisions; Civil Penalty Provisions; Reporting & Disclosure Obligations

Interactions

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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