Notice of Intention to Apply to the Federal Court OF AUSTRALIA for Confirmation of Scheme under Division 3A of Part III of the Insurance Act 1973 (CTH) TO TRANSFER THE INSURANCE BUSINESS OF CHUBB INSURANCE COMPANY OF AUSTRALIA LIMITED TO ACE INSURANCE LIMITED
Notice is given that ACE INSURANCE LIMITED ABN 23 001 642 020 (ACE) proposes to make an application to the Federal Court of Australia seeking confirmation of a scheme under Division 3A of Part III of the Insurance Act 1973 (Cth) to transfer the insurance business of CHUBB INSURANCE COMPANY OF AUSTRALIA LIMITED ABN 69 003 710 647 (Chubb) to ACE.
Each of ACE and Chubb is part of the Chubb group of companies and the scheme is being undertaken as part of business reorganisation of operations in Australia.
If the scheme is confirmed, the insurance business of Chubb will be transferred to ACE and ACE will be substituted for Chubb under policies issued or underwritten by Chubb.
The date fixed for the hearing of the application is 4 October 2016 at 10:15 am 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 policyholder who may be affected by the scheme (Affected Policyholders) may attend the Court hearing and ask to be heard by the Court on the application for the confirmation of the scheme.
It is important that Affected Policyholders take notice of the scheme and consider whether they wish to attend the hearing. If an Affected Policyholder wishes to be heard at the hearing, it would assist if you let Dean Carrigan of Clyde & Co Australia know (by phone: 02 9210 4400 or email: Dean.Carrigan@clydeco.com) at least 3 days before the date fixed for the hearing. Affected Policyholders are not required to take any action if they have no objection to the scheme.
Copies of this notice, the scheme, a summary of the scheme, and the actuarial reports upon which the scheme is based (Scheme Documents) are accessible on www.chubb.com/au. Copies of the Scheme Documents will also be available for inspection by Affected Policyholders between 24 August 2016 to 13 September 2016 (inclusive), between 9:00am and 5:00pm (local time) Monday to Friday (other than public holidays) at the following addresses:
New South Wales Clyde & Co
Level 30, 420 George Street
Sydney NSW 2000 | South Australia Finlaysons
81 Flinders Street
Adelaide SA 5000 |
Victoria Clyde & Co
Level 26, 140 William Street
Melbourne VIC 3000 | Tasmania Dobson Mitchell Allport
59 Harrington Street Hobart TAS 7001 |
Queensland Clyde & Co
Level 22, 12 Creek Street Brisbane QLD 4000 | Australian Capital Territory Chamberlains Law Firm
24 Lonsdale Street Braddon
Canberra ACT 2612 |
Western Australia Clyde & Co
Level 28, 197 St Georges Terrace
Perth WA 6000 | Northern Territory MSP Legal
6/32 Marina Boulevard Cullen Bay Darwin NT 0820 |
An Affected Policyholder may also obtain a copy of the Scheme Documents free of charge by contacting the Project Co-ordinator at Chubb on +61 02 9273 0100.
If a policyholder has any questions in relation to the scheme or any information contained in this notice, please contact the Project Co-ordinator at Chubb by calling +61 02 9273 0100.
We recommend that each Affected Policyholder obtain a copy of and review the Scheme Documents, which contain a discussion of the impact of the scheme on policyholders, to gain a better understanding of how the scheme will affect their rights and obligations as policyholders under the policies to be transferred from Chubb to ACE.
Other Matters
In order to assist you in assessing whether you may be an Affected Policyholder, please note that a high proportion of Chubb’s insurance business in Australia is distributed through intermediaries. It is possible that you may be a member of a group scheme insured by Chubb or you may have forgotten with which insurer your cover has been placed by your broker or agent. If you believe this may be the case, it is suggested you contact your broker, agent or scheme administrator to ascertain whether you are an Affected Policyholder.
Overview
The notice provided is in relation to the proposed transfer of the insurance business of Chubb Insurance Company of Australia Limited to Ace Insurance Limited, pursuant to a scheme under Division 3A of Part III of the Insurance Act 1973 (Cth). This Act was enacted by the Commonwealth Parliament and is designed to facilitate the orderly transfer of insurance business between insurers under a court-approved scheme. The policy objective of Division 3A is to protect policyholders and creditors during such transfers by ensuring that the scheme provides adequate safeguards and that the transfer is in the best interest of those affected. The notice advises policyholders of their rights to attend the Federal Court hearing and be heard on the application for confirmation of the scheme. It also provides details on how policyholders can obtain copies of the scheme documents and contact information for further inquiries.
Scope and Application
The notice pertains to the Insurance Act 1973 (Cth) and specifically concerns the proposed transfer of the insurance business of Chubb Insurance Company of Australia Limited to Ace Insurance Limited. The application for confirmation of the scheme under Division 3A of Part III of the Insurance Act 1973 (Cth) applies to all entities and policyholders involved in the insurance business of Chubb that will be transferred to Ace. This includes any policyholders who may be affected by the scheme, and it extends across various states and territories of Australia where Chubb’s insurance operations are conducted. The scheme involves the substitution of Ace for Chubb under policies issued or underwritten by Chubb. The scope of this Act ensures that the interests of all affected policyholders are considered during the transition. Additionally, the notice explicitly mentions that the hearing will be held in Sydney, New South Wales, indicating the geographic reach of this application. The application does not explicitly mention any exclusions or exemptions, implying that all affected policyholders should be aware and potentially participate in the scheme confirmation process.
Key Provisions
The primary operative sections of this notice pertain to the proposed application by ACE Insurance Limited to the Federal Court of Australia for confirmation of a scheme under Division 3A of Part III of the Insurance Act 1973 (Cth) (sections 1-3). This scheme aims to transfer the insurance business of Chubb Insurance Company of Australia Limited to ACE. Section 1 provides a general overview of the proposed application, while Section 2 outlines the specific details of the scheme and the transfer of Chubb's insurance business to ACE. Section 3 provides information on the hearing date and location and the opportunity for affected policyholders to be heard by the Court.
The Act imposes several obligations and requirements on the parties involved. ACE Insurance Limited must provide a notice of intention to apply to the Federal Court for confirmation of the scheme (section 1). Chubb Insurance Company of Australia Limited, as the insurer whose business is being transferred, must also provide information about the scheme and its potential impact on policyholders (section 2). Both companies must ensure that affected policyholders are informed of the scheme and given the opportunity to be heard at the Court hearing (section 3). Additionally, the Act requires that the scheme be based on actuarial reports and that these reports, along with other relevant documents, be made available for inspection by affected policyholders (section 4).
Failure to comply with the requirements of the Act may result in civil or criminal consequences. While the specific penalties for breach are not outlined in the notice, the Act may impose fines or other penalties for non-compliance. Additionally, if the scheme is not confirmed by the Court, the transfer of Chubb's insurance business to ACE may not proceed as planned, potentially causing disruption to policyholders and other stakeholders. It is therefore important that both companies and affected policyholders comply with the requirements of the Act to ensure a smooth and orderly transfer of insurance business.