National Security (Marine War Risks Insurance) Regulations (Amendment)

Overview

Statutory Rules 1942, No. 489, made under the National Security Act 1939-1940, addresses the need for enhanced marine war risks insurance during wartime. Enacted by the Governor-General in Council, these regulations seek to amend the existing National Security (Marine War Risks Insurance) Regulations to provide broader coverage for goods owned by the Commonwealth that are in transit or awaiting shipment to Australia, thereby mitigating financial losses due to war-related risks. The policy objective is to ensure that the government's property is adequately protected against various maritime risks, including abandonment ordered by military authorities and other war-related perils, thereby safeguarding national resources during critical times.

Scope and Application

The National Security (Marine War Risks Insurance) Regulations 1942, made under the National Security Act 1939-1940, apply to the insurance coverage of goods owned by or on behalf of the Commonwealth of Australia. These regulations specifically govern the coverage of risks associated with the transportation of goods from a country of export to Australia, particularly during wartime. They cover goods that are in a warehouse at or near a port in the country of export awaiting shipment to Australia or in transit from such a warehouse to the ship. The regulations focus on insuring against risks that are not already covered by any insurance scheme by the government of any part of His Majesty’s dominions or any country allied with His Majesty. Additionally, the regulations extend the Board’s powers to include insuring against abandonment ordered by military or other competent authorities and any risks normally included in a Standard Form of English Marine Policy, as well as other associated risks approved by the Board. These provisions are intended to ensure that the transportation of essential goods to Australia during wartime is adequately protected against various maritime risks.

Key Provisions

The main operative sections of this regulation amend Regulation 9 of the National Security (Marine War Risks Insurance) Regulations. Specifically, this amendment modifies the types of risks that can be insured against under the regulation (Regulation 9(1)). Firstly, it removes a previous reference to insurance against risks that are not already covered by government insurance schemes (Regulation 9(1)(d)). Secondly, it adds a new provision for insurance against the risk of abandonment ordered by military or other competent authorities, which applies while goods are in a warehouse at or near a port in the country of export and awaiting shipment to Australia, or in transit from such a warehouse to the ship (Regulation 9(1)(e)). Lastly, it includes insurance against risks typically covered under a Standard Form of English Marine Policy, as well as any other associated risks approved by the Board, when goods are in transit to Australia while they are the property of the Commonwealth (Regulation 9(1)(f)-(g)). The obligations imposed by this regulation primarily concern the Board, which is tasked with approving the types of risks that can be insured against under the amended Regulation 9. The Board must ensure that the insurance covers risks not already insured by government schemes and includes specific risks related to abandonment and transit to Australia. This regulation also imposes a duty on insurers to offer and underwrite policies that comply with the new provisions, ensuring that they cover the specified risks when goods are in transit or awaiting shipment to Australia. Failure to comply with the requirements of this regulation can result in civil or criminal consequences. While the specific offences and penalties are not detailed in the regulation itself, breaches of regulations made under the National Security Act 1939-1940 can potentially lead to penalties as prescribed by the Act. The maximum penalties can include fines and imprisonment, depending on the severity of the breach and the discretion of the court. The regulation underscores the importance of adhering to these provisions to maintain national security and ensure proper insurance coverage for goods in transit.