Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon. Ralph Willis, MP)SCHEDULE 2 AMENDMENTS TO THE LIFE INSURANCE ACT 1995
Item 1 - After Division 3 of Part 7
8. This item inserts after Division 3 a new Division 3A. This Division has been inserted as a consequence of amendments to the Superannuation (Resolution of Complaints) Act 1993 (the 'SRC Act') which enable the decisions of life companies relating to the payment of death or disability benefits by the trustees of regulated superannuation funds and the conduct and decisions of life companies in relation to the sale and management of superannuation-related annuity products to be subject to review by the Superannuation Complaints Tribunal (the 'Tribunal') and for the Tribunal to issue certain remedies in respect of trustee decisions to admit a person as members of regulated superannuation funds where the person is covered by a life policy or policies maintained by the trustee for the purposes of the fund which affect life offices. The Division provides for a scheme of enforcement of Tribunal determinations against life companies which is consistent with that which applies to trustees of superannuation funds and approved deposit funds under the Superannuation Industry (Supervision) Act 1993 .
9. Section 151 A of new Division 3A requires life companies that have been joined as a party to a complaint under sections 14 or 14A, or who are a party to a complaint under sections 15A or 15B of the SRC Act, to comply with any determination of the Tribunal made in respect of that company. If a life company contravenes this provision, then the Insurance and Superannuation Commissioner can apply to the Federal Court under section 235 of the Life Insurance Act 1995 for an injunction. Section 235 of the Act effectively empowers the Federal Court to grant an injunction either restraining the life company from contravening section 151A or requiring the life company to do a particular act.