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Notice varying conditions on Authorisation to carry on insurance business - Domestic & General Insurance PLC

Notice varying conditions on Authorisation to carry on insurance business - Domestic & General Insurance PLC

Administered by Department of the Treasury

Legislation au C2016G01608 In force Gazette

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Notice varying conditions on Authorisation to carry on insurance business

Insurance Act 1973

TO: Domestic & General Insurance PLC ABN 11 124 040 768 (the general insurer) Level 21, Australia Square, 264 George Street, Sydney NSW 2000

SINCE

APRA issued to the general insurer an Authorisation to carry on insurance business in Australia under subsection 12(1) of the Insurance Act 1973 (the Act), on 07 March 2008 (the Authorisation); and
the Authorisation is subject to conditions,

I, Keith Chapman, a delegate of APRA, under paragraph 13(1)(b) of the Act, VARY those conditions imposed on the Authorisation in the manner specified in the attached Schedule.

When this Notice takes effect, the conditions which apply to the Authorisation are set out in the attached Schedule of consolidated conditions.

This Notice takes effect on the date it is signed. Dated: 7 December 2016

[Signed]

Keith Chapman

Executive General Manager Specialised Institutions Division

Interpretation Document ID: 225429

In this Notice

APRA means the Australian Prudential Regulation Authority. insurance business has the meaning given in section 3 of the Act. prudential standard has the meaning given in section 3 of the Act.

Note 1

Under subsection 13(1) of the Act, APRA may, at any time, by written notice to the general insurer

impose conditions or additional conditions or vary or revoke conditions imposed on the insurer's authorisation under section 12 of the Act. The conditions must relate to prudential matters.

Note 2

Under subsection 13(2) of the Act, a condition may be expressed to have effect despite anything in

the prudential standards.

Note 3

Under subsection 13(4) of the Act, if APRA imposes, varies or revokes the conditions on a general

insurer's authorisation, APRA must give written notice to the insurer and ensure that notice that the action has been taken is published in the Gazette.

Note 4

Under subsection 14(1) of the Act, a general insurer commits an offence if:

(a) the insurer does an act or fails to do an act; and

(b) doing the act or failing to do the act results in a contravention of a condition of the insurer's authorisation under section 12 of the Act; and

(c) there is no determination in force under subsection 7(1) of the Act, that subsection 14(1) of the Act does not apply to the insurer.

The penalty is 300 penalty units. Under subsection 14(1A) of the Act, where an individual commits an offence against subsection 14(1) of the Act, because of Part 2.4 of the Criminal Code or commits an offence under Part

2.4 of the Criminal Code in relation to an offence against subsection 14(1) of the Act, the individual is punishable, on conviction, by a penalty not exceeding 60 penalty units. Under subsection 14(2) of the Act, an offence against section 14 of the Act, is an offence of strict liability.

Note 5

Under subsection 13(6) of the Act, a decision to impose conditions, or additional conditions, or to

vary the conditions on the Authorisation are reviewable decisions to which Part VI of the Act applies. If you are dissatisfied with a reviewable decision, you may seek reconsideration of the decision by APRA in accordance with subsection 63(2) of the Act. The request for reconsideration must be in writing, must state the reasons for the request, and must be given to APRA within 21 days after the decision first comes to your notice or within such further period as APRA allows. If dissatisfied with APRA’s reconsidered decision confirming or varying the first decision, you may, subject to the Administrative Appeals Act 1975, apply to the Administrative Appeals Tribunal for review of the reconsidered decision.

The address where written notice may be given to APRA is Level 12, 1 Martin Place, Sydney NSW 2000.

Schedule - the conditions which are being varied

The existing condition(s) which are to be varied:

The general insurer is only authorised to carry on insurance business in Australia in connection with the repair or replacement of electrical or gas consumer products (including any incidental benefits) by means of, but not limited to, the provision of extended warranty, accidental damage and theft insurance.

The condition(s) as varied are:

The general insurer may only carry on insurance business in connection with the repair and replacement of goods and services typically used in domestic settings including cover in respect of accidental damage to or the theft of such goods. Additionally cover may extend to providing incidental benefits over and above the cover in relation to the repair and replacement of the goods and services. However the cover must not extend to cover for product liability, professional indemnity and employers liability insurance.

Schedule of consolidated conditions

Overview

The Insurance Act 1973 was enacted by the Parliament of Australia to provide a framework for the regulation of insurance in Australia, including the licensing of insurance businesses and the oversight of their operations to ensure financial stability and consumer protection. The Act empowers the Australian Prudential Regulation Authority (APRA) to issue authorisations to carry on insurance business, subject to certain conditions that are intended to safeguard policyholders and the financial system. In 2016, APRA, acting under the authority granted by the Act, issued a notice varying the conditions of an authorisation granted to Domestic & General Insurance PLC. The policy objective of the notice was to refine the scope of permissible insurance activities for the insurer, ensuring that it remains focused on providing insurance related to domestic goods and services, while prohibiting certain types of insurance such as product liability, professional indemnity, and employers liability insurance.

Scope and Application

The Notice varying conditions on Authorisation to carry on insurance business applies specifically to Domestic & General Insurance PLC, an entity authorised under the Insurance Act 1973 to conduct insurance business in Australia. The Notice modifies the conditions of the authorisation originally granted by the Australian Prudential Regulation Authority (APRA) on 07 March 2008. The legislation applies across Australia, as APRA is a Commonwealth authority. The scope of the authorisation and its conditions pertains to the specific conduct of insurance business, particularly in relation to the repair or replacement of goods and services typically used in domestic settings. The varied conditions now restrict the insurer to offering insurance for accidental damage or theft of these goods, along with incidental benefits, but explicitly exclude product liability, professional indemnity, and employers' liability insurance. The new conditions are enforceable as per the stipulated provisions of the Act, with any non-compliance potentially resulting in strict liability offences under the Act, subject to the outlined penalties and review processes.

Key Provisions

The primary sections of the legislation (sections 12, 13, and 14) establish the framework within which the Australian Prudential Regulation Authority (APRA) authorises general insurers to conduct business and imposes conditions on those authorisations. Section 12 allows APRA to grant authorisations to carry on insurance business, while section 13 provides APRA with the authority to impose, vary, or revoke conditions on these authorisations, which must relate to prudential matters. Section 14 outlines the legal consequences for a general insurer if it contravenes the conditions of its authorisation. Under the Act, APRA is obligated to ensure that any conditions it imposes on an insurer's authorisation are related to prudential matters and must notify the insurer in writing of any changes to these conditions. Additionally, APRA must publish a notice of any action taken in the Gazette. The general insurer, in turn, must comply with the conditions imposed on its authorisation. Failure to do so can result in the insurer committing an offence under section 14, which carries a strict liability regime and can lead to criminal penalties. The legislation stipulates that an offence is committed if a general insurer fails to adhere to the conditions of its authorisation, resulting in a contravention of those conditions. The penalty for such an offence is 300 penalty units. If an individual commits an offence under section 14, they can be subject to a penalty of up to 60 penalty units. These penalties are in addition to any other civil or administrative penalties that may apply. The decision to vary the conditions on the Authorisation is a reviewable decision under Part VI of the Act, and the insurer has the right to seek reconsideration of the decision by APRA or review by the Administrative Appeals Tribunal if dissatisfied with APRA's reconsidered decision. In summary, the Insurance Act 1973 imposes specific conditions on general insurers' authorisations, which must be complied with to avoid legal consequences. APRA has the authority to vary these conditions and must notify the insurer and the public of any changes. Failure to comply with the conditions can result in strict liability offences and significant penalties.

Area of Law: Insurance Law
Instrument: Gazette Notice
Concepts: Definitions & Interpretation; Reporting & Disclosure Obligations; Regulatory Standards
Catchwords: Insurance Act 1973

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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.

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