Notice of Intention to make an application to the Federal Court of Australia for confirmation of a Scheme for the transfer of the insurance business of OnePath General Insurance Pty Limited to Zurich Australian Insurance Limited under Division 3A of Part III of the Insurance Act 1973

Overview

The Insurance Act 1973, enacted by the Commonwealth Parliament, provides a framework for the regulation of the insurance industry in Australia. The Act addresses gaps and problems related to the insurance market, including ensuring that insurers meet certain standards and that policyholders are protected. The notice under this Act pertains to a proposed scheme for transferring the insurance business of OnePath General Insurance Pty Limited to Zurich Australian Insurance Limited, following OnePath's acquisition by the Zurich group. The policy objective of this notice is to allow affected policyholders to be informed and provide input on the proposed scheme before it is confirmed by the Federal Court. The notice outlines the application process and provides details on how affected policyholders can review the scheme documents and attend the hearing to voice any concerns.

Scope and Application

The proposed Scheme, as outlined in the notice, involves a transfer of the insurance business of OnePath General Insurance Pty Limited to Zurich Australian Insurance Limited, and requires confirmation from the Federal Court of Australia under Division 3A of Part III of the Insurance Act 1973. This Act applies to the entities involved, namely OnePath General Insurance Pty Limited and Zurich Australian Insurance Limited, and will affect policyholders underwritten by OnePath General. The application and subsequent hearing of the Scheme will be conducted under Commonwealth jurisdiction, specifically through the Federal Court of Australia. Any person potentially affected by the Scheme, termed Affected Policyholders, has the right to attend the hearing and request to be heard by the Court. There are no stated exclusions or exemptions within the notice itself, though the scope of the Scheme and its implications for policyholders are detailed in the accompanying documents. The notice does not detail any subordinate instruments that may extend or restrict the application of the Scheme, but it does encourage Affected Policyholders to review the Scheme, the Scheme Summary, and the Actuarial Reports available on the specified websites or through the contact centres.

Key Provisions

The notice given under the Insurance Act 1973 (Cth) (sections 36D and 36E) informs the public that OnePath General Insurance Pty Limited and Zurich Australian Insurance Limited intend to apply to the Federal Court for confirmation of a scheme to transfer OnePath General's insurance business to Zurich (section 36D(2)). If the Federal Court confirms the scheme, all of OnePath General's insurance business will be transferred to Zurich, and Zurich will replace OnePath General under the policies OnePath General underwrote, on or around 1 December 2023 (section 36D(3)). The hearing of the application will be held on 16 November 2023 at 10 am AEST at the New South Wales Registry of the Federal Court of Australia (section 36D(1)). Any person affected by the scheme can attend the hearing and request to be heard by the Federal Court (section 36D(4)). Those wishing to be heard should contact the lawyers, MinterEllison, at least three business days before the hearing. The obligations of OnePath General and Zurich under the scheme include making the scheme documents available for inspection and providing free copies to the public (section 36D(5)). These documents include the notice, the scheme, a summary of the scheme approved by the Australian Prudential Regulation Authority, and actuarial reports. The documents are available on the websites of OnePath General and Zurich and can be obtained by contacting their respective contact centres (section 36D(5)). The scheme documents can also be inspected at specified locations in various Australian states and territories. If the scheme is confirmed by the Federal Court, there are no specific offences, penalties, or consequences outlined in the notice. However, the notice advises that the scheme documents contain a discussion of the impact of the scheme on policyholders, which should be reviewed by each affected policyholder (section 36D(5)). The notice also highlights the importance of reviewing the scheme and related documents to understand the implications of the scheme. There are no explicit maximum penalties mentioned in the notice for non-compliance with the scheme or related obligations. However, any breach of the Insurance Act 1973 (Cth) or related regulations could potentially result in civil or criminal penalties, depending on the nature and severity of the breach.