NOTICE OF INTENTION
Proposed transfer of the life insurance business of Asteron Life & Superannuation Limited ABN 87 073 979 530 (Asteron Life) to TAL Life Limited ABN 70 050 109 450 (TAL Life).
Asteron Life and TAL Life give notice of their intention to make an application to the Federal Court of Australia (Federal Court) for confirmation of a scheme under Part 9 of the Life Insurance Act 1995 (Cth) to transfer the life insurance business of Asteron Life to TAL Life (the Scheme). The proposed effective date of the transfer is 12.01am (AEST) on 1 October 2021 (Effective Time).
The application is scheduled to be heard at 10 September 2021, or on such other time or date as the Federal Court appoints. The hearing will be heard at the New South Wales Registry of the Federal Court, located at Law Court’s Building, Queen’s Square, Sydney.
Affected policy owners have the right to attend the hearing and can request to be heard by the Court. If the Scheme is confirmed by the Federal Court, then it is proposed that with effect from the Effective Time, TAL Life will assume all of Asteron Life’s rights and liabilities in relation to all life insurance policies issued by Asteron Life. The contractual benefits and rights of Asteron Life policy owners will remain unchanged, other than:
- a change to the insurer; and,
- a change to the relevant statutory fund.
If you are affected by the Scheme
Any policy owner who may be affected by the Scheme is entitled to attend the court hearing and request to be heard on the application. If you wish to be heard at the hearing, please contact the lawyers for Asteron Life and TAL Life, Herbert Smith Freehills (attention: Michael Vrisakis), 161 Castlereagh Street, Sydney NSW 2000 (telephone 02 9225 5000) before the hearing date.
If you wish to obtain further information on your rights as a policy owner or if you have any questions about the Scheme, please contact 1800 316 355.
A copy of the Scheme document, the actuarial reports upon which the Scheme is based, and an independent actuarial report on the Scheme can be viewed online at:
- asteronlife.com.au/scheme-transfer; and
- tal.com.au/scheme-transfer.
A Scheme summary has been sent to affected Asteron Life policy owners.
These documents will also be available for inspection between 9am and 5pm each weekday from Friday 23 July 2021 to Friday 20 August 2021 (except public holidays in the relevant State or Territory) at the following places:
ACT
King & Wood Mallesons
Level 12, 1 Constitution Avenue
Canberra, Australian Capital Territory 2601.
Contact: Reception
NSW
Herbert Smith Freehills
Level 34, ANZ Tower,
161 Castlereagh Street,
Sydney, New South Wales 2000.
Contact: Reception
NT
HWL Ebsworth
Level 9, Mitchell Centre
59 Mitchell Street
Darwin, Northern Territory 0800.
Contact: Reception
QLD
Herbert Smith Freehills
Level 31, 480 Queen Street,
Brisbane, Queensland 4000.
Contact: Reception
SA
DMAW Lawyers
Level 10, 81 Flinders Street, Adelaide, South Australia 5000.
Contact: Reception
TAS
Dobson Mitchell Allport Lawyers
59 Harrington Street,
Hobart, Tasmania 7000.
Contact: Reception
VIC
Herbert Smith Freehills
Level 42, 101 Collins Street,
Melbourne, Victoria 3000.
Contact: Reception
WA
Herbert Smith Freehills
Level 36. QV.1 Building,
250 St Georges Terrace,
Perth, Western Australia 6000.
Contact: Reception
Any Asteron Life policy owner and any TAL Life policy owner may obtain a copy of the Scheme document and the actuarial reports, free of charge, from the above offices during the inspection period, or by calling 1800 316 355.
It is in the interests of policy owners to examine the Scheme document and the actuarial reports so as to assure themselves that the Scheme, if confirmed, will not adversely affect their interests.
If you have any questions
Please contact our Contact Centre on 1800 316 355 if you have any questions in relation to the proposed transfer under the Scheme, or if you require further information on your rights as a policy owner.
Overview
The Life Insurance Act 1995 (Cth) was enacted to provide a framework for the regulation of life insurance in Australia, ensuring that insurers operate in a manner that is fair and responsible. It was introduced to address the need for a comprehensive legislative regime governing life insurance activities, protecting consumers, and maintaining the stability of the insurance market. The Act was enacted by the Parliament of Australia with the policy objective of safeguarding policyholders' interests while enabling the efficient operation of the life insurance industry. The Act outlines the obligations of life insurers, the requirements for licensing, and the processes for resolving disputes, among other provisions. It also establishes mechanisms for the transfer of life insurance businesses, as seen in the proposed transfer of Asteron Life’s business to TAL Life, which requires confirmation by the Federal Court under Part 9 of the Act.
Scope and Application
The Life Insurance Act 1995 (Cth) applies to the proposed transfer of the life insurance business of Asteron Life & Superannuation Limited to TAL Life Limited, as both entities are authorised life insurers under the Act. The Act regulates the conduct of life insurance businesses, including the transfer of life insurance policies between authorised life insurers, and provides a framework for ensuring the protection of policy owners. The application for confirmation of the scheme will be made to the Federal Court of Australia, which has jurisdiction over matters concerning the interpretation and application of the Life Insurance Act 1995 (Cth). The scheme is intended to transfer the life insurance business of Asteron Life to TAL Life, and the effective date of the transfer is proposed to be 12.01am (AEST) on 1 October 2021. The Act does not specify any exclusions or exemptions for the transfer of life insurance policies between authorised life insurers, but does provide for the Court to make orders to protect the interests of policy owners. The Act may be extended or restricted in application through subordinate instruments, such as regulations or gazetted notices, but there are no such instruments currently in place that are relevant to this proposed transfer.
Key Provisions
The Life Insurance Act 1995 (Cth) is central to the proposed transfer of the life insurance business from Asteron Life to TAL Life, as detailed in the Notice of Intention (sections 1-3). Under Part 9 of the Act, Asteron Life and TAL Life have given notice of their intention to apply to the Federal Court for confirmation of a scheme to transfer Asteron Life’s business to TAL Life. The proposed effective date of this transfer is set for 12.01am (AEST) on 1 October 2021. This scheme requires the Federal Court's approval before it can proceed, and policy owners have the right to attend the hearing and be heard by the Court if they wish.
The obligations imposed on Asteron Life, TAL Life, and policy owners are detailed in the notice and surrounding documentation. Asteron Life and TAL Life must prepare a scheme document and actuarial reports that justify the proposed transfer, which will be reviewed by the Federal Court. Policy owners, in turn, have the right to inspect the scheme document and actuarial reports, and to request to be heard at the Federal Court hearing. The law requires that the contractual benefits and rights of policy owners remain unchanged, aside from the transition to a new insurer and relevant statutory fund.
The legislation does not explicitly outline specific offences or penalties for breaches in this context. However, the process of transferring the business without proper adherence to the Life Insurance Act 1995 (Cth) could result in legal challenges and potential civil liabilities for both Asteron Life and TAL Life. Should the transfer proceed without the requisite court approval, or if the transfer adversely affects policy owners' rights, Asteron Life and TAL Life could face litigation from affected policy owners. The Act ensures that policy owners' interests are protected and that any transfer of business is conducted transparently and fairly, with the Federal Court acting as a check to ensure compliance with the statutory requirements.