Terrorism and Cyclone Insurance (End of Cyclone Event – Tropical Cyclone Sean - (20250122)) Instrument 2025
I, Victoria Simpson, Chief Executive (Acting), delegate of the Australian Reinsurance Pool Corporation, acting under subsection 8F(2) of the Terrorism and Cyclone Insurance Act 2003 upon a notice from the Bureau of Meteorology, hereby:
- declare that the cyclone event has ended that was previously declared under subsection 8F(1) in relation to Tropical Cyclone Sean (by the Terrorism and Cyclone Insurance (Beginning of Cyclone Event – Tropical Cyclone Sean – (20250119)) Instrument 2025 made on 19 January 2025); and
- specify that the cyclone ended on 22 January 2025 at 5:00 PM [AEST]; and
- state that the claims period for the cyclone event will end on 24 January 2025 at 5:00 PM [AEST].
Dated 22 January 2025
Victoria Simpson
Chief Executive (Acting)
Australian Reinsurance Pool Corporation
Overview
The Terrorism and Cyclone Insurance (End of Cyclone Event – Tropical Cyclone Sean - (20250122)) Instrument 2025 was enacted by Victoria Simpson, the Chief Executive (Acting) of the Australian Reinsurance Pool Corporation, under a delegation of authority provided by the Terrorism and Cyclone Insurance Act 2003. The instrument serves to officially conclude the cyclone event that was initiated by the Tropical Cyclone Sean, which was first declared on 19 January 2025. The primary objective of this notifiable instrument is to ensure a timely and accurate conclusion to the specified cyclone event, thereby facilitating the orderly processing of insurance claims related to the cyclone. By declaring the end of the cyclone event and setting a definitive claims period, the instrument aims to provide clarity and structure to the claims process, ensuring that all related activities are conducted within a clearly defined timeframe.
Scope and Application
The Terrorism and Cyclone Insurance (End of Cyclone Event – Tropical Cyclone Sean - (20250122)) Instrument 2025 applies to entities involved in the insurance industry, specifically those who are members of the Australian Reinsurance Pool Corporation. This instrument declares the conclusion of the cyclone event previously declared in relation to Tropical Cyclone Sean, marking the end of the specified event on 22 January 2025 at 5:00 PM [AEST]. It also sets the deadline for claims related to the cyclone event, which will conclude on 24 January 2025 at 5:00 PM [AEST]. This instrument extends the application of the Terrorism and Cyclone Insurance Act 2003 by providing specific details about the end of the declared cyclone event and the associated claims period, thus ensuring that all related insurance activities are appropriately managed and concluded within the designated timeframe.
Key Provisions
The main operative sections of this notifiable instrument (F2025N00060) declare the end of the previously declared cyclone event in relation to Tropical Cyclone Sean, specify the exact end time of the cyclone, and state the conclusion of the claims period for this event. According to section 1 of the instrument, the cyclone event is declared to have ended, following the declaration made under the Terrorism and Cyclone Insurance (Beginning of Cyclone Event – Tropical Cyclone Sean – (20250119)) Instrument 2025 on 19 January 2025. Section 2 of the instrument specifies that the cyclone ended on 22 January 2025 at 5:00 PM [AEST]. Lastly, section 3 sets the end of the claims period for this cyclone event to 24 January 2025 at 5:00 PM [AEST].
This Act imposes several obligations and requirements on the parties and entities it governs. Firstly, the Australian Reinsurance Pool Corporation must act on notices from the Bureau of Meteorology to declare the beginning and end of cyclone events under the Terrorism and Cyclone Insurance Act 2003. The Corporation must ensure that such declarations are accurate and timely. Additionally, insurance companies and policyholders are required to adhere to the specified claims period, ensuring that all claims are lodged within the stipulated timeframe. This period is crucial for the processing and assessment of claims, maintaining the integrity and efficiency of the insurance system.
The notifiable instrument also outlines the potential consequences for non-compliance with the specified timelines and requirements. Although specific offences and penalties are not detailed within this particular instrument, breaches of similar provisions in the Terrorism and Cyclone Insurance Act 2003 can lead to significant consequences. For instance, failing to lodge claims within the prescribed period may result in the denial of insurance coverage for damages. Additionally, any failure to comply with the Act's requirements can potentially lead to civil or criminal penalties, depending on the nature and severity of the breach. In more severe cases, penalties can include fines and, in extreme circumstances, imprisonment.