Terrorism Insurance (Member) Appointment (No. 3) 2021

Overview

The Terrorism Insurance (Member) Appointment (No. 3) 2021, issued on 23 June 2021 by Michael Sukkar, Assistant Treasurer and Minister for Housing and Minister for Homelessness, Social and Community Housing, appoints Jan van der Schalk as a part-time member of the Australian Reinsurance Pool Corporation for the period from 1 July 2021 to 30 June 2024. This appointment is made under subsection 13(1) of the Terrorism Insurance Act 2003, with the condition that Jan van der Schalk is eligible for such appointment as stipulated in subsection 13(3) of that Act. This notifiable instrument aims to ensure the continued effective operation of the Australian Reinsurance Pool Corporation by providing necessary expertise and representation in the context of terrorism insurance, thereby addressing the need for skilled personnel in this critical area. The Terrorism Insurance Act 2003 was enacted to establish the Australian Reinsurance Pool Corporation and to provide for the making of reinsurance arrangements in relation to terrorist acts. The policy objective of this legislation is to ensure that insurance coverage is available for terrorist acts in Australia, thereby supporting the resilience of the insurance market and protecting the interests of policyholders. The Terrorism Insurance (Member) Appointment (No. 3) 2021 furthers this objective by facilitating the appointment of qualified individuals to the Corporation, ensuring that it is well-equipped to manage and mitigate the risks associated with terrorism insurance.

Scope and Application

The Terrorism Insurance (Member) Appointment (No. 3) 2021I notifies the appointment of Jan van der Schalk as a part-time member of the Australian Reinsurance Pool Corporation (ARPC) from 1 July 2021 to 30 June 2024. This appointment is made under subsection 13(1) of the Terrorism Insurance Act 2003, and it is contingent upon the eligibility of the appointee as per subsection 13(3) of the same Act. The Terrorism Insurance Act 2003 applies to entities involved in the provision of insurance and reinsurance in Australia, particularly focusing on terrorism insurance, and thus this appointment falls within the scope of that legislation. The Act's application extends to the Commonwealth level, with the appointment being made by the Assistant Treasurer, Michael Sukkar, who holds multiple ministerial portfolios related to housing and community services. There are no specific exclusions, exemptions, or thresholds mentioned in the notification; however, the broader provisions of the Terrorism Insurance Act 2003 may include such details. The application of the Act might also be extended or restricted through subordinate instruments, though this specific notification does not elaborate on such instruments.

Key Provisions

The main operative section of the instrument F2021N00134 (Notifiable instrument) is section 1, which appoints Jan van der Schalk as a member of the Australian Reinsurance Pool Corporation on a part-time basis from 1 July 2021 to 30 June 2024. This appointment is made under the authority provided by subsection 13(1) of the Terrorism Insurance Act 2003. The appointee, Michael Sukkar, Assistant Treasurer and Minister for Housing, has confirmed that Jan van der Schalk meets the eligibility criteria set out in subsection 13(3) of the Act. The obligations and requirements imposed by this appointment include Jan van der Schalk’s role as a part-time member of the Australian Reinsurance Pool Corporation. As a member, Jan van der Schalk is expected to participate in the governance and decision-making processes of the Corporation, particularly in relation to the management of terrorism insurance. This appointment aligns with the statutory objectives of the Terrorism Insurance Act 2003, ensuring that the Corporation has the necessary expertise and representation to effectively manage terrorism insurance risks. There are no direct offences or penalties specified within this notifiable instrument itself. However, breaches of the obligations and requirements as a member of the Australian Reinsurance Pool Corporation may lead to consequences under the Terrorism Insurance Act 2003. Depending on the nature and severity of the breach, such actions could result in disciplinary measures, including the possibility of removal from office. Additionally, any criminal misconduct or breach of statutory duties may lead to legal action under other relevant Australian laws, potentially resulting in fines or imprisonment as prescribed by the relevant statutes.