Notice of Intention to make an application to the Federal Court of Australia for confirmation of a Scheme for the transfer of the general insurance business of North Insurances Pty Ltd (ABN 21 050 197 110) to Gordian RunOff Limited (ABN 11 052 179 647) under Division 3A of Part III of the Insurance Act 1973 (Cth)
TAKE NOTICE that Gordian RunOff Limited (ABN 11 052 179 647) ("Gordian") intends to apply to the Federal Court of Australia at Law Courts Building, Queens Square, Sydney for orders confirming a scheme for the transfer of the general insurance business of North Insurances Pty Ltd (ABN 21 050 197 110) ("North") to Gordian ("Scheme").
If the Scheme is confirmed, all general insurance business of North (comprising public liability insurance policies, property damage and business interruption insurance policies, and workers’ compensation insurance policies issued by North when licensed under the Workers Compensation Act 1987 (NSW) (each a "North Policy")) will transfer to Gordian and Gordian will be substituted for North as the insurer under these policies. Any future claims made in respect of a North Policy will need to be made to Gordian. Persons affected by the Scheme may request to be heard by the Court.
Affected policyholders may obtain a copy of the Scheme, this Notice of Intention, and the actuarial report of Warrick Gard of Ernst & Young dated 12 October 2021 on which the Scheme is based ("actuarial report"), free of charge by contacting Mick Martino on +61 7 3625 4352 during the hours of 9.00am and 7.00pm Monday to Friday, or by emailing Mick.Martino@riotinto.com during the period 15 November 2021 to 10 December 2021 (except public holidays in New South Wales). The Scheme, this Notice of Intention and the actuarial report will also be available for inspection at www.northinsurances.com from 15 November 2021 until the decision on the Scheme is made by the Court.
Any person who, in the Court's opinion, may be affected by the Scheme can ask the Court, at the hearing on 15 December 2021, to be heard on the application. If you wish to be heard at the hearing, you may contact Gordian’s lawyers, Norton Rose Fulbright (Attention: Matt Ellis, telephone +61 3 8686 6000) before the hearing date for details. No person is required to take action if they have no objection to the proposed Scheme.
Should you require further information or have any concerns about the proposed Scheme, please contact Mick Martino on +61 7 3625 4352.
Overview
The Notice of Intention to make an application to the Federal Court of Australia for confirmation of a Scheme for the transfer of the general insurance business of North Insurances Pty Ltd (ABN 21 050 197 110) to Gordian RunOff Limited (ABN 11 052 179 647) under Division 3A of Part III of the Insurance Act 1973 (Cth) was enacted in 2021 to address the issue of transferring the general insurance business of North Insurances to Gordian RunOff Limited. This notice is pursuant to the Insurance Act 1973, which was enacted by the Parliament of Australia. The policy objective is to provide a clear and transparent process for the transfer of insurance policies and obligations from one insurer to another, ensuring that policyholders are informed and have an opportunity to be heard in the Federal Court of Australia regarding the proposed transfer.
Scope and Application
The notice pertains to an application to the Federal Court of Australia by Gordian RunOff Limited, which intends to confirm a scheme for the transfer of the general insurance business of North Insurances Pty Ltd to itself under Division 3A of Part III of the Insurance Act 1973. This legislation applies specifically to Gordian RunOff Limited and North Insurances Pty Ltd, and it involves the transfer of public liability insurance policies, property damage and business interruption insurance policies, and workers’ compensation insurance policies issued by North Insurances Pty Ltd. The application is made at the Law Courts Building in Queens Square, Sydney, and is subject to the Federal Court’s jurisdiction. If the scheme is confirmed, Gordian will replace North Insurances as the insurer for all transferred policies, and any future claims will need to be directed to Gordian. Affected policyholders are afforded the opportunity to request to be heard by the Court, and they can access the scheme, the notice of intention, and the underlying actuarial report free of charge during the specified period. The notice also indicates that no person is required to take action if they have no objection to the proposed scheme.
Key Provisions
The main sections of this Notice of Intention (1) inform stakeholders of Gordian RunOff Limited's intention to apply to the Federal Court of Australia for confirmation of a scheme (2) that would transfer the general insurance business of North Insurances Pty Ltd to Gordian (3). Specifically, section 1 provides a notice of intention to apply to the Federal Court of Australia for confirmation of a scheme, section 2 details what the scheme entails, and section 3 outlines the procedure for obtaining relevant documents and making representations. The Scheme (4) involves the transfer of all general insurance business of North, which includes public liability insurance policies, property damage and business interruption insurance policies, and workers' compensation insurance policies issued by North when licensed under the Workers Compensation Act 1987 (NSW) (5).
The Notice of Intention imposes several obligations and requirements on the parties involved. Firstly, it mandates that the Scheme, the Notice of Intention, and the actuarial report be made available to the public. Gordian is required to facilitate access to these documents by providing contact details for obtaining copies and specifying the period during which they will be available for inspection (6). Additionally, affected policyholders are given the opportunity to request to be heard by the Court regarding the application (7). Gordian must also provide information to those who wish to be heard at the hearing, including contact details for Gordian’s lawyers, Norton Rose Fulbright (8).
Failure to comply with the requirements of the Notice of Intention or the Scheme may result in various consequences. Although the Notice of Intention does not explicitly state offences or penalties, any breach of the terms of the Scheme, once confirmed by the Court, could lead to legal actions. If the Scheme is confirmed by the Court, and any party fails to comply with the provisions of the Scheme, they may face civil or criminal consequences, depending on the nature and severity of the breach (9). The maximum penalties for such breaches are not specified in the Notice of Intention but would be determined by the Court based on the relevant legislation governing insurance business transfers.