Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon. Ralph Willis, MP)SCHEDULE 1 AMENDMENTS TO THE INSURANCE ACT 1973
Item 1 - After section 129B
6. This item inserts after section 129B new sections 129C and 129D. These sections have been inserted as a consequence of amendments to the Superannuation (Resolutions of Complaints) Act 1993 (the 'SRC Act') which enable the decisions of bodies corporate authorised to carry on insurance business under the Insurance Act 1973 ('general insurance companies') relating to the payment of death or disability benefits by trustees of regulated superannuation funds to be subject to review by the Superannuation Complaints Tribunal ('the Tribunal'). The sections provide for a scheme of enforcement of Tribunal determinations against general insurance companies which is consistent with the scheme which applies to trustees of superannuation funds and approved deposit funds under the Superannuation Industry (Supervision) Act 1993 .
7. Section 129C requires general insurance companies that have been joined as a party to a complaint about a disability benefit to comply with any determination of the Tribunal made in respect of that company. Section 129D provides, in effect, that the Insurance and Superannuation Commissioner may apply to the Federal Court for an injunction against a general insurance company where it has engaged, is engaging, or proposes to engage, in any conduct in contravention of section 129C. Subsection 129D(1) empowers the Federal Court to grant such an injunction either restraining the general insurance company from engaging in the conduct or requiring the body corporate to do a particular act.