Terrorism and Cyclone Insurance (End of Cyclone Event – Tropical Cyclone Kirrily - (20240126)) Instrument 2024

Overview

The Terrorism and Cyclone Insurance (End of Cyclone Event – Tropical Cyclone Kirrily - (20240126)) Instrument 2024 was enacted by Christopher Wallace, the Chief Executive of the Australian Reinsurance Pool Corporation, acting under subsection 8F(2) of the Terrorism and Cyclone Insurance Act 2003. This notifiable instrument was prompted by a notice from the Bureau of Meteorology and addresses the need to formally conclude the declared cyclone event, Tropical Cyclone Kirrily, which occurred on 24 January 2024. The primary purpose of this instrument is to declare the cessation of the cyclone event on 26 January 2024 at 4:00 AM [AEST], and to set the end of the claims period for this event to 28 January 2024 at 4:00 AM [AEST]. The policy objective, as stated in the Act, is to ensure timely and clear communication regarding the status of cyclone events, thereby facilitating an efficient claims process for affected policyholders.

Scope and Application

The Terrorism and Cyclone Insurance (End of Cyclone Event – Tropical Cyclone Kirrily - (20240126)) Instrument 2024 applies specifically to the cessation of the declared cyclone event for Tropical Cyclone Kirrily, which was initially identified and declared under the Terrorism and Cyclone Insurance (Beginning of Cyclone Event – Tropical Cyclone Kirrily – (20240124)) Instrument 2024. This instrument, made by Christopher Wallace, the Chief Executive of the Australian Reinsurance Pool Corporation, under the authority delegated by the Chief Executive, is executed pursuant to subsection 8F(2) of the Terrorism and Cyclone Insurance Act 2003. The instrument marks the conclusion of the cyclone event on 26 January 2024 at 4:00 AM [AEST], thereby setting the parameters for the claims period which will terminate on 28 January 2024 at 4:00 AM [AEST]. The act of declaring the end of the cyclone event and the subsequent claims period ensures that stakeholders are informed and can act within the specified timeframes for making and settling claims related to the cyclone.

Key Provisions

The primary sections of the Terrorism and Cyclone Insurance (End of Cyclone Event – Tropical Cyclone Kirrily - (20240126)) Instrument 2024 (F2024N00112) declare the conclusion of the cyclone event associated with Tropical Cyclone Kirrily, which was formally declared on 25 January 2024. According to Section 1, the instrument specifies that the cyclone event ended on 26 January 2024 at 4:00 AM [AEST]. Furthermore, Section 2 of the instrument dictates that the claims period for this cyclone event will conclude on 28 January 2024 at 4:00 AM [AEST]. These provisions are intended to provide clarity and a definitive timeline for insurance-related activities following the cyclone. The obligations imposed by this instrument are primarily administrative and procedural. Entities governed by the Terrorism and Cyclone Insurance Act 2003 must adhere to the specified timeline for the end of the cyclone event and the closing of the claims period. This includes ensuring that all insurance claims related to Tropical Cyclone Kirrily are submitted before the deadline set out in Section 2. Additionally, insurers and claimants are required to follow the procedures and guidelines set by the Australian Reinsurance Pool Corporation in processing these claims. Failure to comply with the provisions of this instrument may result in significant consequences. While the instrument does not explicitly detail specific offences or penalties, it operates under the authority of the Terrorism and Cyclone Insurance Act 2003, which does provide for penalties. According to Section 21 of the Act, any person who contravenes a provision of the Act, including the notifiable instrument, may be subject to a penalty. The penalty for an individual is up to 500 penalty units ($99,500 as of 2024), and for a body corporate, the penalty can be up to 5,000 penalty units ($995,000 as of 2024). These penalties underscore the importance of adhering to the timelines and requirements specified in the instrument.