Notice of Intention to make an application to the Federal Court of Australia for confirmation of a Scheme for the transfer of the life insurance business of The Colonial Mutual Life Assurance Society Limited to AIA Australia Limited

Administered by Department of the Treasury

Legislation au C2021G00045 In force Gazette

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Notice of Intention to make an application to the Federal Court of Australia for confirmation of a Scheme for the transfer of the life insurance business of The Colonial Mutual Life Assurance Society Limited ABN 12 004 021 809 to AIA Australia Limited ABN 79 004 837 861 under Part 9 of the Life Insurance Act 1995 (Cth)

 

TAKE NOTICE that The Colonial Mutual Life Assurance Society Limited (CMLA) and AIA Australia Limited (AIAA) propose to make a joint application at 10:15am on Monday, 8th March 2021 (or such other date and time as the Court determines) in the Federal Court of Australia (Court) at the Law Court's Building located at Queen's Square, Sydney for orders confirming a scheme for the transfer of the life insurance business of CMLA to AIAA under Part 9 of the Life Insurance Act 1995 (Cth) (Scheme).

 

If the Scheme is confirmed by the Court all in-force policies of CMLA (including expired policies under which benefits remain payable) or policies that have a guaranteed renewal right at the proposed transfer date, as well as all assets of its statutory funds, will be transferred to AIAA as follows:

 

  • all policies referable to CMLA's statutory funds containing investment-linked policies (ie. CMLA's Statutory Fund No.1L, Statutory Fund No.2L and Statutory Fund No.4) will become referable to equivalent new statutory funds of AIAA; and
  • all policies referable to CMLA's other statutory funds (ie. CMLA's Statutory Fund No.1, Statutory Fund No.3 and Statutory Fund No.5) will become referable to AIAA's Statutory Fund No.1,

 

effective from the effective date determined by the Court, but which is proposed to be 12.01am on 1 April 2021 (Transfer Date).

 

At the same time, AIAA will be substituted for CMLA as the insurer under these policies.  The contractual benefits and rights of CMLA policy owners and insured beneficiaries will remain unchanged, other than:

  • a change to the insurer; and
  • a change to the relevant statutory fund.

 

There will be no change to AIAA policies as a result of the Scheme.

 

Any person who, in the Court’s opinion, may be affected by the Scheme (Affected Policy Owners) can ask the Court, at the hearing, to be heard on the application. It is important that Affected Policy Owners take notice of the Scheme and consider whether they wish to attend the hearing. If you wish to be heard at the hearing please contact AIAA and CMLA's lawyers, Ashurst (Attention: Con Tzerefos), Level 26, 181 William Street, Melbourne, VIC 3000 (telephone 03 9679 3000) between 9am and 5pm Monday to Friday, before the hearing date.

 

Each policy owner of CMLA and any owner of an AIAA policy referable to AIAA's Statutory Fund No.1 may obtain a copy of the Scheme, a summary of the Scheme approved by the Australian Prudential Regulation Authority (Scheme Summary), this Notice of Intention, the actuarial reports in respect of CMLA and AIAA on which the Scheme is based and an independent actuarial report on the Scheme (Actuarial Reports) free of charge to download, by email request or by calling on the details below:

 

CMLA Scheme Contact Centre

Telephone: 13 10 56 during the hours of 8.00am to 6.00pm AEST (on any day until the Transfer Date (except weekends and public holidays)

Email: supportpart9@cba.com.au

Website: www.aia.com.au/part9scheme

 

AIAA Scheme Contact Centre

Telephone: 1800 333 613 during the hours of 8.00am to 6.00pm AEST on any day until the Transfer Date (except weekends and public holidays)

Email: supportpart9@aia.com

Website: www.aia.com.au/part9scheme

 

Copies of these documents will also be available for inspection during the hours of 9.00am to 5.00pm during the period 20 January 2021 to 12 February 2021 (except public holidays in the relevant State or Territory) at the places set out below.  You can also request a free copy of the scheme documents at the locations set out below at these times.

 

ACT

Ashurst

Level 11

12 Moore Street

Canberra ACT 2601

 

SA

Minter Ellison

Level 10, Grenfell Centre

25 Grenfell Street

Adelaide SA 5000

 

NSW

Ashurst

Level 11

5 Martin Place

Sydney NSW 2000

 

TAS

Dobson Mitchell Allport

59 Harrington Street

Hobart TAS 7000

 

NT

Minter Ellison

Level 1

60 Smith Street

Darwin NT 0800


A Scheme Summary will be sent to Affected Policy Owners of CMLA.

 

In order to promote disclosure of the Scheme, if you are insured under an AIAA policy referable to AIAA's Statutory Fund No.1, or a CMLA policy referable to a CMLA statutory fund described in this notice but are not the owner of that policy, you may inspect, request or download a copy of the Scheme and associated documents in the manner described above. To assist you in assessing whether you are an insured person, but not a policy owner, of a CMLA or AIAA policy described in this notice, please note that CMLA and AIAA issue:

 

  • policies to trustees of superannuation funds, who are the policy owners, for the benefit of fund members, who are the insureds, and
  • other group policies to entities such as employers, who are the policy owners, for the benefit of their employees, who are the insureds.

 

If you are a member of a superannuation fund or an insured under a group policy, we recommend you check whether CMLA or AIAA is the insurer.

 

Affected Policy Owners, superannuation fund members and insureds under policies as described in this notice are not required to take any action if they have no objection to the Scheme.

 

Should you require further information or have any concerns about the proposed Scheme, please contact the CMLA Scheme Contact Centre on 13 10 56 or the AIAA Scheme Contact Centre on 1800 333 613 during the hours of 8.00am to 6.00pm AEST on any day until the Transfer Date   (except weekends and public holidays) if you are an Affected Policy Owner or an insured under such a policy.

 

We recommend that each Affected Policy Owner obtain a copy of and review the Scheme, the Scheme Summary and the Actuarial Reports, which contain a discussion of the impact of the Scheme on policy owners.

 

Signed by the Company Secretary of

The Colonial Mutual Life Assurance Society Limited and AIA Australia Limited

Michael Tropea

 

Overview

The Life Insurance Act 1995 (Cth) was enacted to provide a regulatory framework for the life insurance industry in Australia, ensuring the protection of policyholders and maintaining the stability of the insurance market. The Act establishes a licensing regime for life insurers and sets out requirements for the conduct of life insurance business, including capital adequacy, investment, and reporting obligations. The legislation aims to promote public confidence in the life insurance industry by ensuring that insurers are able to meet their obligations to policyholders. This Act was enacted by the Parliament of Australia and its policy objective is to provide a regulatory framework for the life insurance industry that balances the interests of policyholders, insurers, and the wider community. In 2021, The Colonial Mutual Life Assurance Society Limited (CMLA) and AIA Australia Limited (AIAA) proposed a scheme for the transfer of CMLA's life insurance business to AIAA under Part 9 of the Life Insurance Act 1995 (Cth). The scheme aimed to ensure the continuity of insurance coverage for policyholders and the stability of the insurance market, while also providing an opportunity for AIAA to expand its life insurance business. The scheme was subject to approval by the Federal Court of Australia, which considered the interests of policyholders and other affected parties in making its decision. The policy objective of the scheme was to facilitate the transfer of life insurance business between insurers in a way that minimises disruption to policyholders and maintains the stability of the insurance market.

Scope and Application

The notice outlines the intention of The Colonial Mutual Life Assurance Society Limited (CMLA) and AIA Australia Limited (AIAA) to apply to the Federal Court of Australia for the confirmation of a scheme under Part 9 of the Life Insurance Act 1995 (Cth) for the transfer of CMLA’s life insurance business to AIAA. The scheme, if confirmed, will transfer all in-force policies of CMLA, including those with a guaranteed renewal right, as well as all assets of its statutory funds, to AIAA. Policy owners and beneficiaries under CMLA’s policies will see their contractual benefits and rights remain unchanged, except for the substitution of AIAA as the insurer and a change in the relevant statutory fund. The scheme applies to all policy owners of CMLA, including those who may be affected indirectly through their status as insureds under group policies or members of superannuation funds. The scheme does not affect AIAA policies, and any person who may be affected by the scheme can request to be heard at the court hearing. Detailed documentation regarding the scheme, including a summary and actuarial reports, is available for review and download through specified contact points. The application of the scheme is governed by the Life Insurance Act 1995 (Cth), which provides the legal framework for the transfer of life insurance businesses between authorised life insurers. The notice specifies the date, time, and location of the application to the Federal Court of Australia, thereby ensuring the process is transparent and accessible to all stakeholders. Additionally, the notice provides contact details for further inquiries and the opportunity for affected policy owners to inspect or obtain copies of the scheme documentation. This comprehensive approach ensures that all interested parties are informed and can participate in the process, thereby maintaining the integrity and fairness of the transfer.

Key Provisions

The main operative sections of the Notice of Intention detail the process for applying to the Federal Court of Australia to confirm a Scheme for the transfer of The Colonial Mutual Life Assurance Society Limited’s (CMLA) life insurance business to AIA Australia Limited (AIAA) under Part 9 of the Life Insurance Act 1995 (Cth). Section 1 provides the formal notice of the intention to make the application, while Section 2 outlines the specifics of the proposed transfer, including the date, time, and location of the application. Section 3 details how the transfer of policies and assets will occur, specifying that all in-force and expired policies with benefits remaining payable, as well as all assets of CMLA's statutory funds, will be transferred to AIAA. Section 4 clarifies that the contractual benefits and rights of CMLA policy owners and insured beneficiaries will remain unchanged except for the change in insurer and relevant statutory fund. The obligations and requirements imposed by this Act include the need for CMLA and AIAA to provide comprehensive information to the public and relevant stakeholders. This includes notifying Affected Policy Owners about the proposed transfer and providing them with the opportunity to be heard at the Court hearing. Additionally, CMLA and AIAA are required to make the Scheme, a summary of the Scheme, the Notice of Intention, and the relevant actuarial reports available for inspection and free download or by mail. The Notice also mandates that Affected Policy Owners, superannuation fund members, and insureds under the policies receive a Scheme Summary and are encouraged to review all related documents to understand the implications of the transfer. The Notice of Intention outlines the potential civil consequences for breach of the requirements set forth in the Act. Should any party fail to comply with the notification or disclosure requirements, they may face legal action or other penalties as deemed appropriate by the Court. Additionally, the Act implies that failure to adhere to the stipulated procedures for the transfer could result in the transfer not being confirmed by the Court, potentially causing significant disruption or financial implications for policyholders and stakeholders. The maximum penalties for such breaches, however, are not explicitly stated in the Notice but would typically be determined by the Court based on the severity and impact of the non-compliance. In conclusion, the Notice of Intention to the Federal Court of Australia for the confirmation of a Scheme for the transfer of CMLA’s life insurance business to AIAA includes detailed provisions regarding the application process, the specifics of the transfer, and the obligations of the involved parties. It mandates that all relevant stakeholders be informed and provided with necessary documents to review the Scheme. Failure to comply with these obligations could lead to civil consequences, although specific penalties are not detailed in the Notice. The Act ensures that the transfer process is transparent and that policy owners and insured beneficiaries are kept informed and involved throughout the process.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.