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Insurance Contracts Amendment Bill 2013

2010-2011-2012-2013

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

 

 

 

 

 

Insurance Contracts Amendment Bill 2013

 

No.      , 2013

 

(Treasury)

 

 

 

A Bill for an Act to amend the Insurance Contracts Act 1984 , and for related purposes

   

   



Contents

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 1

3............ Schedule(s)......................................................................................... 3

Schedule 1—Scope and application                                                                             4

Part 1—Duty of utmost good faith                                                                         4

Insurance Contracts Act 1984                                                                                   4

Part 2—Bundled workers’ compensation contracts                                       7

Insurance Contracts Act 1984                                                                                   7

Part 3—Bundled contracts generally                                                                     8

Insurance Contracts Act 1984                                                                                   8

Schedule 2—Electronic communication                                                                  10

Insurance Contracts Act 1984                                                                                 10

Schedule 3—Powers of ASIC                                                                                        12

Insurance Contracts Act 1984                                                                                 12

Schedule 4—Disclosure and misrepresentations                                                13

Part 1—Insureds’ duty of disclosure                                                                   13

Insurance Contracts Act 1984                                                                                 13

Part 2—Eligible contracts of insurance                                                               15

Division 1—Amendments commencing on Royal Assent                                  15

Insurance Contracts Act 1984                                                                                 15

Division 2—Amendments commencing 30 months after Royal Assent          19

Insurance Contracts Act 1984                                                                                 19

Part 3—Insurers’ duty to inform of duty of disclosure                              22

Insurance Contracts Act 1984                                                                                 22

Part 4—Non-disclosures by life insureds                                                           25

Insurance Contracts Act 1984                                                                                 25

Schedule 5—Remedies of insurers: life insurance contracts                      27

Part 1—Unbundling of contracts                                                                           27

Insurance Contracts Act 1984                                                                                 27

Part 2—Remedies for non-disclosure and misrepresentation                  29

Insurance Contracts Act 1984                                                                                 29

Part 3—Remedy for misstatement of date of birth                                      32

Insurance Contracts Act 1984                                                                                 32

Part 4—Cancellation of contracts                                                                          34

Insurance Contracts Act 1984                                                                                 34

Schedule 6—Third parties                                                                                               36

Part 1—Requests by third party beneficiaries to insurers for information              36

Insurance Contracts Act 1984                                                                                 36

Part 2—Insurers’ defences in actions by third party beneficiaries        38

Insurance Contracts Act 1984                                                                                 38

Part 3—Rights and obligations of third party beneficiaries under life insurance contracts            41

Insurance Contracts Act 1984                                                                                 41

Part 4—Rights of third parties to recover against insurers                        43

Insurance Contracts Act 1984                                                                                 43

Part 5—Representative actions by ASIC on behalf of third party beneficiaries 45

Insurance Contracts Act 1984                                                                                 45

Part 6—Non-disclosure or misrepresentation by members of group life insurance schemes          46

Insurance Contracts Act 1984                                                                                 46

Schedule 7—Subrogation                                                                                                 49

Insurance Contracts Act 1984                                                                                 49

 



A Bill for an Act to amend the Insurance Contracts Act 1984 , and for related purposes

The Parliament of Australia enacts:

1   Short title

                   This Act may be cited as the Insurance Contracts Amendment Act 2013.

2   Commencement

             (1)  Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

 

2.  Schedule 1

The day this Act receives the Royal Assent.

 

3.  Schedule 2

A single day to be fixed by Proclamation.

However, if any of the provision(s) do not commence within the period of 6 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period.

 

4.  Schedule 3

The day this Act receives the Royal Assent.

 

5.  Schedule 4, Part 1

The day after the end of the period of 30 months beginning on the day this Act receives the Royal Assent.

 

6.  Schedule 4, Part 2, Division 1

The day this Act receives the Royal Assent.

 

7.  Schedule 4, Part 2, Division 2

The day after the end of the period of 30 months beginning on the day this Act receives the Royal Assent.

 

8.  Schedule 4, Parts 3 and 4

The day after the end of the period of 30 months beginning on the day this Act receives the Royal Assent.

 

9.  Schedule 5, Part 1

The day this Act receives the Royal Assent.

 

10.  Schedule 5, Part 2

The day after the end of the period of 12 months beginning on the day this Act receives the Royal Assent.

 

11.  Schedule 5, Parts 3 and 4

The day this Act receives the Royal Assent.

 

12.  Schedule 6, Parts 1 to 4

The day after the end of the period of 12 months beginning on the day this Act receives the Royal Assent.

 

13.  Schedule 6, Part 5

The day this Act receives the Royal Assent.

 

14.  Schedule 6, Part 6

The day after the end of the period of 12 months beginning on the day this Act receives the Royal Assent.

 

15.  Schedule 7

The day after the end of the period of 6 months beginning on the day this Act receives the Royal Assent.

 

Note:          This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

             (2)  Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3   Schedule(s)

                   Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.