NOTICE OF INTENTION TO APPLY TO THE FEDERAL COURT FOR CONFIRMATION OF A SCHEME FOR THE TRANSFER OF THE INSURANCE BUSINESS OF MDA NATIONAL INSURANCE PTY LTD TO MEDICAL INSURANCE AUSTRALIA PTY LIMITED UNDER DIVISION 3A OF PART III OF THE INSURANCE ACT 1973 (CTH).
TAKE NOTICE that Medical Insurance Australia Pty Limited ABN 99 092 709 629 (Medical Insurance Australia) intends to make an application to the Federal Court of Australia in Sydney on 23 October 2014 at 10.15 am, or on such later date or time as the Court appoints, for confirmation of a scheme to transfer the insurance business written or assumed by MDA National Insurance Pty Ltd ABN 56 058 271 417 (MDA National Insurance) to Medical Insurance Australia (Scheme).
Medical Insurance Australia is incorporated in Australia and is a wholly owned subsidiary of Medical Defence Association of South Australia Limited ABN 41 007 547 588. MDA National Insurance is also incorporated in Australia. It is a wholly owned subsidiary of MDA National Limited ABN 67 055 801 771. Medical Insurance Australia and MDA National Insurance are authorised under the Insurance Act 1973 (Cth) to carry on general insurance business in Australia.
Persons who are insured under insurance contracts written or assumed by MDA National Insurance or who may be otherwise affected by the terms of the Scheme (Affected Policyholders) may attend the Court hearing and request to be heard by the Court on the application for confirmation of the Scheme. The hearing will be held at the New South Wales Registry of the Federal Court of Australia. It would be helpful if any Affected Policyholder who wishes to appear before the Court would notify the solicitor for Medical Insurance Australia, Mark Lindfield of DibbsBarker, Level 9, Angel Place, 123 Pitt Street, Sydney NSW 2000 (p: +61 2 8233 9500 or e:mark.lindfield@dibbsbarker.com) of their intention to do so at least seven days prior to the hearing date specified above. Affected Policyholders are not required to take any action if they have no objection to the Scheme.
A copy of this notice, the Scheme, a summary of the Scheme and the actuarial report by Tim Andrews of Finity Consulting dated 12 September 2014 (Actuarial Report) upon which the Scheme is based (Scheme Documents), will be available for public inspection free of charge between the hours of 9.00am and 5.00pm (local time) every day (except weekends and public holidays) for the period commencing on 22 September 2014 and ending on 15 October 2014 at:
(a) the offices of MDA National Insurance at the following addresses:
New South Wales | Victoria | Queensland |
MDA National Insurance
Level 5
69 Christie Street
St Leonards NSW 2065
| MDA National Insurance
Level 3
100 Dorcas Street
Southbank VIC 3006
| MDA National Insurance
Level 8
87 Wickham Terrace
Spring Hill QLD 4000 |
Western Australia | South Australia | Tasmania |
MDA National Insurance
Level 3
88 Colin Street
West Perth WA 6005 | MDA National Insurance
Unit 7
161 Ward Street
North Adelaide SA 5006
| MDA National Insurance
Level 1 ABC Centre 1-7 Liverpool Street
Hobart TAS 7000 |
(b) the office of Ernst & Young at the following address:
Australian Capital Territory |
Ernst & Young
121 Marcus Clarke Street
Canberra ACT 2601 |
(c) and the office of Merit Partners at the following address:
Northern Territory |
Merit Partners Level 2 9 Cavenagh Street Darwin NT 0800 |
Any policyholder of MDA National Insurance or Medical Insurance Australia may obtain a copy of the Scheme Documents free of charge by contacting Luke Thomson on 1800 011 255 (toll-free call).
If you have any other enquiries you may contact Luke Thomson at the contact details referred to above.
A copy of the Scheme Documents can be viewed during the period set out above on the website maintained by MDA National Limited and MDA National Insurance at: http://www.mdanational.com.au/
We recommend that each Affected Policyholder obtain and review the Scheme, the summary of the Scheme and the Actuarial Report, which contains a discussion of the impact of the Scheme on policyholders.
THIS NOTICE HAS BEEN PREPARED BY MEDICAL INSURANCE AUSTRALIA PTY LIMITED
Dated: 19 September 2014
Overview
The Insurance Act 1973 (Cth) was enacted to provide a framework for the regulation of the insurance industry in Australia. It was introduced to address the need for a consistent and coherent legislative regime governing insurance practices across the nation. The Act was passed by the Parliament of Australia and its policy objective is to ensure the stability and integrity of the insurance industry, thereby protecting policyholders and promoting fair and efficient markets. One of the provisions within the Act is Division 3A of Part III, which deals with the transfer of insurance business from one insurer to another. This legislative framework aims to facilitate orderly transfers that safeguard the interests of policyholders and maintain market confidence.
Scope and Application
The notice pertains to an application under Division 3A of Part III of the Insurance Act 1973 (Cth) for the confirmation of a scheme to transfer the insurance business of MDA National Insurance Pty Ltd to Medical Insurance Australia Pty Limited. This scheme applies to affected policyholders of MDA National Insurance, those who have existing insurance contracts written or assumed by MDA National Insurance or who may otherwise be impacted by the terms of the scheme. The application for confirmation will be heard by the Federal Court of Australia, with the specific location being the New South Wales Registry. Policyholders who are affected by the scheme and wish to be heard by the Court at the hearing are invited to notify the solicitor for Medical Insurance Australia of their intention to do so at least seven days prior to the hearing date. There are no specific exclusions or exemptions mentioned in this notice, and the application extends to all policyholders who may be affected by the scheme. The notice further states that the scheme documents will be available for public inspection at various locations and online for a specified period.
Key Provisions
The notice in question pertains to a proposed transfer of insurance business from MDA National Insurance Pty Ltd to Medical Insurance Australia Pty Limited, under Division 3A of Part III of the Insurance Act 1973 (Cth) (sections 146A-146G). Medical Insurance Australia, a wholly owned subsidiary of the Medical Defence Association of South Australia Limited, plans to apply to the Federal Court for confirmation of this transfer scheme on 23 October 2014, or any later date set by the Court (section 146G(1)). The transfer aims to streamline operations between the two entities, which are both authorised to conduct general insurance business in Australia.
Those affected by this scheme, known as Affected Policyholders, have the right to attend the Court hearing and present their views to the Court on the application for confirmation. This provision is intended to ensure transparency and fairness in the process, allowing stakeholders to voice their concerns or objections (section 146G(3)). The hearing will take place at the New South Wales Registry of the Federal Court of Australia. Any Affected Policyholder who wishes to be heard by the Court must notify the solicitor for Medical Insurance Australia, Mark Lindfield of DibbsBarker, of their intention to do so at least seven days prior to the hearing. This allows the Court and the parties involved to prepare adequately for the hearing.
The notice also stipulates that the Scheme Documents, including the Scheme itself, a summary, and the Actuarial Report by Tim Andrews of Finity Consulting, will be available for public inspection for a specified period. These documents will be accessible at various offices of MDA National Insurance across Australia, at the office of Ernst & Young in Canberra, and at the office of Merit Partners in Darwin. Additionally, the documents can be viewed on the website maintained by MDA National Limited and MDA National Insurance. This transparency measure ensures that all interested parties have access to the relevant information to make informed decisions about the scheme.
Breaching the provisions of the Insurance Act 1973 (Cth) can lead to serious consequences. While the notice does not explicitly detail the penalties for non-compliance, under the Act, failure to comply with the requirements for confirming a scheme can result in substantial penalties. The Act provides for both civil and criminal penalties, including fines and imprisonment, depending on the severity of the breach. For example, section 146G(6) of the Act stipulates that any person who fails to comply with the notice requirements can be subject to penalties as determined by the Court. Such penalties are intended to enforce compliance and protect the interests of policyholders and other stakeholders involved in the insurance process.