Notice of Intention to make an Application to the Federal Court of Australia for confirmation of a Scheme for the transfer of the medical malpractice insurance business of Professional Insurance Australia Pty Ltd (ACN 050 266 307) to Avant Insurance Limited (ACN 003 707 471) under Division 3A of Part III of the Insurance Act 1973 (Cth)
TAKE NOTICE that Professional Insurance Australia Pty Ltd (ACN 050 266 307) (“PIA”) and Avant Insurance Limited (ACN 003 707 471) (“Avant”) intend to apply at 9:30am on 13 April 2022 in the Federal Court of Australia at Law Courts Building, Queens Square, Sydney for orders confirming a scheme for the transfer of the medical malpractice insurance business of PIA to Avant (“Scheme”).
If the Scheme is confirmed, all medical malpractice insurance policies that were issued by PIA (“Transferring Policy”) will transfer to Avant. At the same time, Avant will be substituted for PIA as the insurer under these policies. Any future claims made in respect of a Transferring Policy after the Scheme is confirmed will need to be made to Avant.
Persons affected by the Scheme may request to be heard by the Court on the Scheme (see below for further details).
A Scheme Summary is being sent to each holder of a Transferring Policy (“Affected Policyholders”).
The Scheme, the Scheme Summary, this Notice of Intention and the actuarial report on which the scheme is based will also be available for inspection from 21 March 2022. The documents will be accessible online at the following web address https://www.avant.org.au/PIA-Scheme-of-Arrangement/ from 21 March 2022 up until the time the application is heard by the Court.
Affected Policyholders may also obtain a copy of the Scheme, a summary of the Scheme that has been approved by the Australian Prudential Regulation Authority (“Scheme Summary”), this Notice of Intention, the actuarial report of Jefferson Gibbs of KPMG Australia dated 4 March 2022 on the Scheme (the “actuarial report”), free of charge by contacting PIA’s representative on 0439 550 999 during the hours of 9:00 am to 5:00 pm AEST Monday to Friday during the period 21 March 2022 to 8 April 2022 (except public holidays in New South Wales).
Affected Policyholders wishing to inspect the Scheme, the Scheme Summary, this Notice of Intention or the actuarial report may do so at the places set out below during the hours of 9:00 am to 5:00 pm AEST Monday to Friday during the period 21 March 2022 to 8 April 2022 (except public holidays in the relevant State or Territory).
NSW | King & Wood Mallesons Level 61, Governor Phillip Tower 1 Farrer Place, Sydney NSW 2000 Contact: Receptionist | | |
SA | Avant Insurance Limited Level 1, 195 Melbourne Street North Adelaide SA 5006 Contact: Receptionist | | |
Any person who, in the Court’s opinion, may be affected by the Scheme can ask the Court, at the hearing, to be heard on the application. It is important that Affected Policyholders take notice of the Scheme and consider whether they wish to attend the hearing. If you wish to be heard at the hearing, you may contact PIA’s and Avant’s lawyers, King & Wood Mallesons (Attention: Mandy Tsang), Level 61, Governor Phillip Tower, 1 Farrer Place, Sydney NSW 2000 (telephone 02 9296 2000 and fax 02 9296 3999) before the hearing date.
Affected Policyholders (as described in this notice) are not required to take any 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 PIA’s representative on 0439 550 999, during the dates and at the times listed in this notice.
We recommend that each Affected Policyholder obtain a copy of, and review, the Scheme, the Scheme Summary and the actuarial report, which contain a discussion of the impact of the Scheme on policyholders.
Company Secretaries
Professional Insurance Australia Pty Ltd and
Avant Insurance Limited
Overview
The Insurance Act 1973 (Cth) provides the framework for the regulation of the insurance industry in Australia. The Act was enacted by the Commonwealth Parliament to ensure that insurance contracts are fair, clear, and accessible to consumers, and to protect policyholders from unfair practices by insurers. The Act sets out the requirements for the licensing and conduct of insurance businesses, as well as the rights and obligations of insurers and policyholders. The Act also provides for the resolution of disputes between insurers and policyholders, including the establishment of the Australian Financial Complaints Authority (AFCA) to provide an independent dispute resolution service. In this case, the proposed Scheme for the transfer of the medical malpractice insurance business of Professional Insurance Australia Pty Ltd to Avant Insurance Limited is being made under Division 3A of Part III of the Insurance Act 1973 (Cth), which allows for the transfer of a licensed insurer’s business to another insurer. The policy objective of the Scheme is to ensure that policyholders are not disadvantaged by the transfer of their insurance business, and that the transfer is conducted in a fair and orderly manner.
The notice of intention to make an application to the Federal Court of Australia for confirmation of the Scheme is being provided to policyholders of Professional Insurance Australia Pty Ltd to ensure that they are aware of the proposed transfer and have the opportunity to make representations to the Court if they wish to do so. The notice sets out the details of the Scheme, including the date and time of the Court hearing, and provides information on how policyholders can obtain copies of the Scheme and related documents. The notice also explains that policyholders who have no objections to the proposed Scheme do not need to take any action, but are encouraged to review the Scheme and related documents to ensure that they understand the impact of the transfer on their insurance policies. Overall, the notice is intended to provide transparency and fairness to policyholders affected by the proposed transfer, and to ensure that the Scheme is conducted in accordance with the requirements of the Insurance Act 1973 (Cth).
Scope and Application
The notice of intention to make an application to the Federal Court of Australia for confirmation of a Scheme for the transfer of the medical malpractice insurance business of Professional Insurance Australia Pty Ltd (PIA) to Avant Insurance Limited (Avant) under Division 3A of Part III of the Insurance Act 1973 (Cth) applies to all affected policyholders who hold a transferring policy issued by PIA. The Scheme will result in the substitution of Avant for PIA as the insurer under these policies and any future claims made in respect of a transferring policy after the Scheme is confirmed will need to be made to Avant. Persons affected by the Scheme may request to be heard by the Court on the Scheme. The documents will be accessible online and may also be inspected at specified locations during certain hours. The Scheme applies on a national level as it involves the transfer of a business between two companies that are subject to Commonwealth legislation. The Act does not provide for any stated exclusions, exemptions, or thresholds. The application of the Act may be extended or restricted through subordinate instruments.
Key Provisions
This notice sets out the details of an application to the Federal Court of Australia by Professional Insurance Australia Pty Ltd (PIA) and Avant Insurance Limited (Avant) for confirmation of a scheme to transfer the medical malpractice insurance business of PIA to Avant (Section 1). If the scheme is confirmed, all medical malpractice insurance policies issued by PIA will transfer to Avant, with Avant becoming the insurer under these policies (Section 2). Persons affected by the scheme may request to be heard by the Court on the scheme (Section 3).
PIA and Avant are required to provide a notice of the intention to apply to the Federal Court of Australia for confirmation of the scheme (Section 1). They must also provide a scheme summary, the scheme, this notice of intention and the actuarial report to affected policyholders, and make them available for inspection (Section 4). Any person who may be affected by the scheme can ask the Court, at the hearing, to be heard on the application (Section 3).
Failure to comply with the provisions of this notice may result in legal consequences. However, the notice does not specify any particular offences, penalties, or consequences for breach. The maximum penalties for breaches of the Insurance Act 1973 (Cth) are not specified in this notice. The consequences of a breach would depend on the specific provisions of the Act that are breached and the circumstances of the breach. Generally, breaches of the Act may result in fines, imprisonment, or both, depending on the seriousness of the breach. In addition, affected policyholders may have legal rights to seek compensation or other remedies if they are adversely affected by the scheme.