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Insurance Amendment Bill 1990



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House: House of Representatives

Portfolio: Treasury

Purpose

To increase the threshold level under which the Treasurer may exempt companies from the operation of certain insurance requirements and to allow the threshold to be increased by regulation.

Background

Section 37 of the Insurance Act 1973 (the Principal Act) allows the Treasurer to exempt from provisions of the Principal Act any corporation which acts as an insurer: for its members; employees of its members; its members or employees of its members; persons engaged in one particular trade, industry or profession, provided also that any premiums received by or due to the corporation during its preceding financial year do not exceed $500 000. An exemption has effect for such time as specified by the Treasurer; is subject to such terms and conditions as specified by the Treasurer; and the Treasurer may revoke or vary an exemption.

In the Second Reading Speech to the Bill the reason given by the Minister for the proposed amendments is that the current limit on annual premiums of $500 000 has been eroded to the extent that one of the insurers operating with a restricted authority under section 37 of the Principal Act may shortly exceed the limit.

Main Provisions

The effect of clause 3 will be to increase from $500 000 to $750 000, or a prescribed higher amount, the threshold level of annual premiums under which the Treasurer may exempt companies from the operation of certain insurance requirements imposed by the Principal Act.

Bills Digest Service 24 January 1991

Parliamentary Research Service

For further information, if required, contact the Economics and Commerce Group on 06 2772460.

This Digest does not have any official legal status. Other sources should be consulted to determine the subsequent official status of the Bill.

Commonwealth of Australia 1991

Except to the extent of the uses permitted under the Copyright Act 1968, no part of this publication may be reproduced or transmitted in any form or by any means, including information storage and retrieval systems, without the prior written consent of the Parliamentary Library, other than by Members of the Australian Parliament in the course of their official duties.

Published by the Department of the Parliamentary Library, 1991.