Terrorism and Cyclone Insurance (End of Cyclone Event – Tropical Cyclone Dianne - (20250329)) Instrument 2025

Overview

The Terrorism and Cyclone Insurance (End of Cyclone Event – Tropical Cyclone Dianne - (20250329)) Instrument 2025 is a notifiable instrument issued under the authority of the Terrorism and Cyclone Insurance Act 2003. Enacted by I, Christopher Wallace, Chief Executive of the Australian Reinsurance Pool Corporation, the instrument responds to a specific need to formally conclude the declared cyclone event associated with Tropical Cyclone Dianne, which was initially declared on 28 March 2025. This legislative action addresses the gap in formalising the end of the cyclone event, ensuring that all related insurance claims and policy adjustments are managed within a defined timeframe. The primary objective of this instrument is to provide clarity and certainty to policyholders and insurers by officially marking the end of the cyclone event and setting a definitive period for related claims, thereby facilitating an orderly resolution of insurance matters arising from the cyclone.

Scope and Application

The Terrorism and Cyclone Insurance (End of Cyclone Event – Tropical Cyclone Dianne – (20250329)) Instrument 2025 applies to entities and individuals involved in insurance transactions, specifically those covered by the Terrorism and Cyclone Insurance Act 2003, within the jurisdiction of Australia. This notifiable instrument pertains to the cessation of the declared cyclone event caused by Tropical Cyclone Dianne, as declared by the Bureau of Meteorology and confirmed by the Chief Executive of the Australian Reinsurance Pool Corporation. The instrument sets the timeline for the end of the cyclone event and specifies the period during which claims related to the event can be made. Geographically, the instrument applies nationally across Australia, covering all areas affected by the cyclone. The instrument does not specify any exclusions, exemptions, or thresholds, but it does set definitive dates for the conclusion of the cyclone event and the closing of the claims period. The authority to extend or restrict the application of this instrument may be provided through subordinate legislation, allowing for adjustments based on evolving circumstances.

Key Provisions

The main operative sections of this notifiable instrument, F2025N00292, focus on the declaration of the end of Tropical Cyclone Dianne as a cyclone event, and the setting of a specific time and date for the conclusion of this event. Under section 1, the declaration confirms that the cyclone event has ended, referencing the earlier declaration made under section 8F(1) of the Terrorism and Cyclone Insurance Act 2003. Section 2 specifies the exact time and date that the cyclone ceased to be an active event, which is 10:00 AM [AEST] on 29 March 2025. Section 3 then establishes the end of the claims period, which is set to conclude at 10:00 AM [AEST] on 31 March 2025. The obligations and requirements imposed by this instrument are primarily administrative and procedural. The declaration by the Chief Executive of the Australian Reinsurance Pool Corporation, Christopher Wallace, acts as an official notice to relevant parties, including insurers, policyholders, and possibly government agencies, that Tropical Cyclone Dianne is no longer considered an active event. This declaration is crucial for the purposes of processing claims, managing payouts, and ensuring that the insurance policies and legal frameworks are appropriately applied post-cyclone. The specified end time and date for the cyclone event and the claims period provide a clear timeline for all stakeholders to follow, ensuring that all necessary actions are taken within the prescribed timeframe. In terms of potential breaches and consequences, the notifiable instrument does not explicitly state penalties or consequences for failing to comply with the declared end of the cyclone event or the claims period. However, under the Terrorism and Cyclone Insurance Act 2003, non-compliance with such declarations could result in legal actions or administrative penalties. Insurers who fail to adhere to the specified claims period may face legal challenges from policyholders or regulatory sanctions. Similarly, policyholders who do not submit their claims within the designated period may lose their entitlement to compensation under their insurance policies. Therefore, adherence to the declared timelines is crucial for all parties involved to avoid potential legal and financial repercussions.