War Service Homes Regulations (Amendment)

Overview

The War Service Homes Regulations 1929 were introduced to amend the existing regulations under the War Service Homes Act 1918-1927. Enacted by the Governor-General in Council, these regulations aimed to address gaps in the insurance coverage of war service homes by broadening the types of damage that would qualify for insurance, and clarifying the conditions under which certain damages would not be covered. The policy objective was to ensure that war service homes were adequately protected against a wider range of perils, while also preventing insurance claims from being made in cases where the insured party was negligent or had contributed to the damage. This legislative instrument was created to provide clear guidelines for the insurance of war service homes, thereby protecting both the interests of the insured and the integrity of the insurance system.

Scope and Application

The War Service Homes Regulations, made under the War Service Homes Act 1918-1927, govern the insurance of properties, particularly those of war service homes, by outlining the types of damages for which insurance can be claimed and the conditions under which such claims are valid. The regulations apply to entities involved in the ownership or management of war service homes, including veterans and their families, and extend across the Commonwealth of Australia. The amendments to these regulations update the scope of insured damages to include events such as damage by explosion, earthquake, riot, strikes, aircraft, and the bursting of boilers or heating apparatus, while explicitly excluding damages caused by certain neglectful actions by the property owner, such as failing to maintain safety measures or secure the property during unoccupancy. These regulations determine the amount of insurance by allowing the Commissioner to set the insurance value, plus any outstanding payments by a purchaser or borrower for a period of six months, thereby providing a flexible yet controlled approach to insuring war service homes against various perils.

Key Provisions

The War Service Homes Regulations (Statutory Rules 1926, No. 171, as amended) have been updated to incorporate several significant changes. Regulation 20 now includes additional causes of damage such as explosion, thunderbolt, earthquake, riot, civil commotion, strikes, labour disturbances, burglary, aircraft, and the bursting of boilers, hotwater pipes or heating apparatus (Regulation 20(1)). The definition of "authorized officer" in Regulation 53 has also been modified to include any person authorised by the Commissioner to conduct inspections and valuations of property (Regulation 53(2)). Further amendments to Regulation 53 introduce specific conditions under which property will not be considered damaged. For instance, property will not be deemed damaged by explosion if an explosive or dangerously inflammable substance was present without the Commissioner's written consent (Regulation 53(2)(d)), and it will not be considered damaged by riot, civil commotion, strikes, or labour disturbances if the assured was a party to such disturbances (Regulation 53(2)(e)). Similarly, damage caused by burglary will not be considered if the property was not securely locked during unoccupancy (Regulation 53(2)(f)), and damage by aircraft will not be considered unless caused by the falling aircraft or an object dropping from it (Regulation 53(2)(g)). Lastly, property will not be deemed damaged by the bursting of boilers, hotwater pipes, or heating apparatus if the assured failed to maintain them in good working order and repair (Regulation 53(2)(h)). The amendments impose several obligations on the parties governed by these regulations. Firstly, the assured must obtain written consent from the Commissioner for any explosive or dangerously inflammable substances on the property to avoid non-recognition of damage by explosion. Secondly, parties involved in riot, civil commotion, strikes, or labour disturbances must ensure they were not a party to such disturbances to avoid non-recognition of damage. Thirdly, property must be securely locked during any period of unoccupancy to avoid non-recognition of burglary damage. Fourthly, boilers, hotwater pipes, and heating apparatus must be maintained in good working order and repair to avoid non-recognition of damage from their bursting. Additionally, the Commissioner is now responsible for determining the amount of insurance for properties insured under the Act, taking into account the sum of instalments payable by a purchaser or borrower for a period of six months (Regulation 59). The regulations outline several consequences for breaches of their provisions. If a party fails to comply with the conditions for determining damage, the insurance claim for that specific cause of damage may be denied. For example, if an assured allowed an explosive substance on the property without consent, any damage caused by explosion would not be covered. Similarly, failure to secure the property during unoccupancy may result in denial of a burglary claim, and neglect in maintaining boilers, hotwater pipes, or heating apparatus could lead to non-recognition of damage from their bursting. These consequences are directly tied to the specific conditions outlined in Regulation 53(2). The regulations do not explicitly state any criminal or civil penalties for breaches, but the denial of insurance claims constitutes a significant financial and legal consequence for the assured.