NOTICE OF INTENTION TO APPLY TO THE FEDERAL COURT OF AUSTRALIA FOR THE APPROVAL OF A SCHEME UNDER PART III DIVISION 3A OF THE INSURANCE ACT 1973 (CTH)
TO TRANSFER THE INSURANCE BUSINESS OF CALLIDEN INSURANCE LIMITED TO GREAT LAKES AUSTRALIA
TAKE NOTICE that Great Lakes Insurance SE, trading as Great Lakes Australia ABN 18 964 580 576 (GLA) proposes to make an application to the Federal Court of Australia for confirmation of a scheme under Part III Division 3A of the Insurance Act 1973 (Cth) to transfer the insurance business of Calliden Insurance Limited ABN 47 004 125 268 (CIL) to its related company, GLA.
If the scheme is confirmed, the insurance business of CIL will be transferred to GLA and GLA will be substituted for CIL under policies issued or underwritten by CIL.
The time and date fixed for the hearing of the application is 10.15am on Wednesday, 22 March 2017 or on such later 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 Court Building, Queens Square, Sydney, New South Wales.
A policyholder affected by the scheme (Affected Policyholder) has the right to attend the Federal Court of Australia at the hearing of the application by GLA and ask to be heard by the Court.
It is important that Affected Policyholders take notice of the scheme and consider whether they wish to attend the hearing. If you wish to appear at the hearing, including if you wish to oppose the application, it would be helpful if you could provide prior written notice of your intention to appear to GLA c-/Rehana Box, Ashurst Australia, 5 Martin Place, Sydney, New South Wales 2000. Affected Policyholders are not required to take any action if they have no objection to the scheme.
An Affected Policyholder may inspect a copy of this notice, the scheme, the scheme summary and the actuarial report upon which the scheme will be based (Scheme Documents), and obtain a copy of the Scheme Documents free of charge between Monday, 20 February 2017 and Wednesday, 15 March 2017 (inclusive) from 9.00 am to 5.00 pm each weekday (other than public holidays) at the following addresses:
Australian Capital Territory Deloitte 8 Brindabella Circuit Brindabella Business Park, Canberra | New South Wales Deloitte Grosvenor Place, 225 George Street, Sydney | Northern Territory Deloitte Level 11, 24 Mitchell Street, Darwin | Queensland Deloitte Level 25 & 26, Riverside Centre, 123 Eagle Street, Brisbane |
South Australia Deloitte 11 Waymouth Street, Adelaide | Tasmania Deloitte Level 8, 22 Elizabeth Street, Hobart | Victoria Deloitte 550 Bourke Street, Melbourne | Western Australia Deloitte Brookfield Place, Tower 2, 123 St Georges Terrace, Perth |
A copy of the Scheme Documents can be viewed via the link titled 'Scheme to transfer the insurance business of Calliden Insurance Limited to Great Lakes Australia' at: https://www.callideninsurance.com.au and https://www.munichre.com/gla/en/default/index.htm.
Copies of the Scheme Documents and information about them can also be obtained free of charge from GLA by telephoning Annalise Meurant, Corporate Counsel & Assistant Company Secretary, Munich Re Australia on +61 2 9272 2054 between 9am and 5pm, Monday to Friday.
We recommend that each Affected Policyholder obtain a copy of and review the scheme documentation, 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 CIL to GLA.
Great Lakes Australia
12 February 2017
Overview
The Insurance Act 1973 (Cth), enacted by the Australian Parliament, serves as the legislative framework governing the regulation of the insurance industry in Australia. In an effort to address the complexities and potential disruptions that can arise from the transfer of insurance business between companies, Part III Division 3A of the Act provides a structured process for approving such transfers. This division was introduced to ensure that policyholders' interests are protected and that the integrity of the insurance market is maintained during transitions. The notice under consideration relates to a proposed scheme to transfer the insurance business of Calliden Insurance Limited to Great Lakes Australia, requiring approval from the Federal Court of Australia. The objective is to confirm that the scheme complies with the legislative requirements and to safeguard the rights of affected policyholders during the transition.
Scope and Application
The notice of intention to apply to the Federal Court of Australia for the approval of a scheme under Part III Division 3A of the Insurance Act 1973 (Cth) applies to Great Lakes Insurance SE, trading as Great Lakes Australia (GLA), and to the insurance business of Calliden Insurance Limited (CIL), a related entity. This scheme is aimed at transferring the insurance business of CIL to GLA, with the Federal Court's confirmation needed to effect the substitution of GLA for CIL under the policies issued or underwritten by CIL. The application is intended to be heard in the New South Wales Registry of the Federal Court of Australia, thus indicating the scheme's jurisdictional reach within the Commonwealth of Australia. Policyholders who may be affected by the scheme have the right to attend the hearing and request to be heard by the Court, allowing them to express any objections or concerns. The scheme's application is not limited by any stated exclusions or exemptions, and while it is not specified if there are any thresholds, the requirement for Federal Court confirmation suggests a level of significance to the insurance transaction. The application of this Act may be extended or restricted through subordinate instruments, though this is not detailed in the provided notice.
Key Provisions
The notice of intention to apply to the Federal Court of Australia for the approval of a scheme under Part III Division 3A of the Insurance Act 1973 (Cth) (section 1) outlines the proposal by Great Lakes Insurance SE, trading as Great Lakes Australia (GLA), to transfer the insurance business of Calliden Insurance Limited (CIL) to its related company. The application will be heard at the New South Wales Registry of the Federal Court of Australia, with a specified date and time (section 2). Affected policyholders have the right to attend and be heard by the Court, and it is recommended that they review the scheme documentation to understand the impact on their rights and obligations (section 3). The scheme documents, including the notice, scheme, scheme summary, and actuarial report, can be inspected and obtained free of charge from Deloitte offices across Australia or via a link provided (section 4).
The obligations imposed by this notice primarily concern the parties involved in the proposed scheme. GLA must provide clear and accessible information to affected policyholders, enabling them to make informed decisions about the scheme and their rights to be heard at the Federal Court hearing. Affected policyholders are required to review the scheme documentation and consider whether they wish to appear at the hearing to express their views or objections (section 3). Furthermore, the notice mandates that the scheme documents be made available for inspection and copying at specified locations and times, ensuring transparency and accessibility for all interested parties (section 4).
The notice also highlights potential consequences for breaches of the requirements outlined in the scheme. While the notice does not explicitly state specific offences or penalties, breaches of the Insurance Act 1973 (Cth) or the Insurance Contracts Act 1984 (Cth) in the context of the scheme could result in civil or criminal penalties. For instance, under the Insurance Act 1973 (Cth), a person who contravenes certain provisions may be liable for penalties, including fines of up to $1.1 million for individuals and $5.5 million for bodies corporate, as prescribed by the Act (section 178). Additionally, the Federal Court has the authority to make orders to rectify any breaches or to compensate affected parties (section 179). Failure to comply with the notice's requirements to provide information and make documents accessible could also lead to legal repercussions under the applicable Acts.