INSURANCE ACT 1973 (CTH)
NOTICE OF INTENTION TO APPLY TO THE FEDERAL COURT FOR CONFIRMATION OF SCHEMES UNDER DIVISION 3A OF PART III OF THE INSURANCE ACT 1973 (CTH) TO TRANSFER THE AUSTRALIAN INSURANCE BUSINESSES OF SUNCORP METWAY INSURANCE LIMITED, GIO GENERAL LIMITED, AUSTRALIAN ALLIANCE INSURANCE COMPANY LIMITED AND AUSTRALIAN ASSOCIATED MOTOR INSURERS LIMITED TO AAI LIMITED
Notice is given that AAI Ltd ACN 005 297 807 (AAI) proposes to make an application to the Federal Court of Australia seeking confirmation of four separate but concurrent schemes under Division 3A of Part III of the Insurance Act 1973 (Cth) to transfer the Australian general insurance businesses of each of the following Suncorp Group companies to AAI:
- Suncorp Metway Insurance Limited ACN 075 695 966 (SMIL), which currently underwrites Suncorp Insurance general insurance policies;
- GIO General Limited ACN 002 861 583 (GIO), which currently underwrites GIO, AMP and Resilium general insurance policies;
- Australian Alliance Insurance Company Limited ACN 006 471 709 (Aust Alliance), which currently underwrites Apia, InsureMyRide and Shannons general insurance policies; and
- Australian Associated Motor Insurers Limited ACN 004 791 744 (AAMI) which currently underwrites AAMI, Bingle.com.au and Just Car Insurance general insurance policies.
Each of SMIL, GIO, Aust Alliance, AAMI and AAI is part of the Suncorp Group of companies and the schemes are being undertaken as part of an internal reorganisation of the group.
As a consequence of the schemes, AAI will be substituted for each of SMIL, GIO, Aust Alliance and AAMI under policies issued or underwritten by SMIL, GIO, Aust Alliance and AAMI respectively.
The date fixed for the hearing of the application is 2 May 2013 at 10.15am or on such other date as the Court appoints. The hearing will be held at the New South Wales Registry of the Federal Court of Australia which is located at the Law Courts Building, Queens Square, Sydney NSW 2000. Any person who, in the Court’s opinion, may be affected by any of the schemes can ask the Court, at the hearing, to be heard on the application.
It is important that persons affected by any of the schemes take notice of the schemes and consider whether they wish to attend the hearing. If a policyholder wishes to be heard at the hearing, it would assist if you let our lawyer, Mr Malcolm Stephens of Allens, Level 28, Deutsche Bank Place, 126 Phillip Street, Sydney NSW 2000 (Telephone (02) 9230 4828), know at least 3 days before the date fixed for hearing.
Copies of this notice, the schemes, a summary of the schemes and the actuarial report on which the schemes are based are available on www.schemesummary.com.au. Copies of these documents will also be available for inspection by affected policyholders between 2 April 2013 to 22 April 2013 (inclusive), between 9:00am and 5:00pm Monday to Friday (other than public holidays) at the following addresses:
New South Wales
Allens Level 28, Deutsche Bank Place, 126 Phillip Street, Sydney NSW 2000 | South Australia
Finlaysons
Level 8, 81 Flinders Street, Adelaide SA 5000 |
Victoria
Allens Level 37, 101 Collins Street, Melbourne VIC 3000 | Tasmania
Simmons Wolfhagen
168 Collins Street, Hobart TAS 7000
|
Queensland
Allens Level 31, Riverside Centre, 123 Eagle Street, Brisbane QLD 4000
| Australian Capital Territory
Chamberlains Law Firm
Unit 19, 23 Moore Street, Turner ACT 2612 |
Western Australia
Allens Level 37, QV.1, 250 St Georges Tce, Perth WA 6000
| Northern Territory
Cridlands MB Level 9, Mitchell Centre, 59 Mitchell Street, Darwin NT 0800 |
If a policyholder has any questions in relation to the schemes or any information contained in this notice, please contact AAI's dedicated scheme hotline by calling 1800 064 521. An affected policy owner may request a copy of the scheme by contacting the scheme hotline.
Overview
The Insurance Act 1973 (Cth) was enacted to provide a framework for the regulation of the insurance industry in Australia, aiming to protect the interests of policyholders and the public. This Act addresses gaps in the regulation of insurance companies and their operations, ensuring a fair and efficient insurance market. The Insurance Act was passed by the Parliament of Australia and its policy objectives include ensuring the solvency of insurance companies, protecting policyholders, and facilitating the orderly operation of the insurance market. In this context, AAI Ltd has provided notice of its intention to apply to the Federal Court for confirmation of schemes to transfer the Australian general insurance businesses of Suncorp Metway Insurance Limited, GIO General Limited, Australian Alliance Insurance Company Limited, and Australian Associated Motor Insurers Limited to AAI Limited. This reorganisation within the Suncorp Group aims to streamline operations and ensure continued service to policyholders, with AAI substituting for the aforementioned companies under existing policies. The public is invited to attend the Federal Court hearing and provide input if affected by these schemes.
Scope and Application
The Insurance Act 1973 (Cth) applies to the proposed schemes for the transfer of Australian general insurance businesses from Suncorp Metway Insurance Limited, GIO General Limited, Australian Alliance Insurance Company Limited, and Australian Associated Motor Insurers Limited to AAI Limited. The schemes pertain to the internal reorganisation of the Suncorp Group of companies and aim to substitute AAI for the aforementioned companies under existing policies. The act's scope encompasses the entities involved in the reorganisation and the insurance policies underwritten by these entities. The jurisdiction for the application and subsequent court proceedings falls under the Commonwealth of Australia, with the hearing scheduled at the New South Wales Registry of the Federal Court of Australia. The notice extends to all policyholders who may be affected by the schemes, providing them with an opportunity to be heard during the court hearing. The act facilitates the restructuring of insurance businesses within the Suncorp Group, ensuring that the transition maintains the integrity and continuity of existing insurance policies.
Key Provisions
The Insurance Act 1973 (Cth) facilitates the transfer of insurance businesses through Division 3A of Part III, which is the focus of the notice provided. Specifically, AAI Limited intends to apply to the Federal Court for confirmation of schemes that will transfer the Australian insurance businesses of Suncorp Metway Insurance Limited, GIO General Limited, Australian Alliance Insurance Company Limited, and Australian Associated Motor Insurers Limited to AAI Limited (section 1(2)). These transfers are part of an internal reorganisation within the Suncorp Group of companies.
Under these provisions, the schemes require AAI to seek court confirmation before the transfer of the insurance businesses can proceed. This involves submitting detailed plans outlining how the transfer will occur, ensuring that policyholders’ rights and obligations are maintained, and that there is no adverse impact on the insurance market. The court will review these schemes to ensure they comply with the relevant legislative requirements and are fair to all stakeholders, including policyholders.
The obligations imposed on the involved parties, primarily AAI, include preparing comprehensive schemes that meet the requirements of Division 3A, ensuring transparency and fairness in the transfer process, and providing all necessary documentation and information to the court and affected parties. AAI must also ensure that policyholders are adequately informed about the changes and given the opportunity to be heard if they choose to do so. Furthermore, all parties must comply with the court's directions and any conditions imposed as part of the confirmation process.
Failure to comply with the provisions of the Insurance Act 1973 (Cth) or the court's orders could result in legal consequences. While the notice does not specify detailed penalties, breaches of insurance legislation generally can lead to significant fines, legal action, or even criminal charges, depending on the severity of the breach. For example, misleading or deceptive conduct in the context of insurance transfers can attract substantial penalties under the Corporations Act 2001 (Cth) and other relevant legislation. The precise consequences would depend on the nature and extent of the non-compliance.