Zurich Australian Insurance Limited, in the matter of Zurich Australian Insurance Limited [2018] FCA 1567

Zurich Australian Insurance Limited, in the matter of Zurich Australian Insurance Limited [2018] FCA 1567

Dispensation was appropriate because, given the nature of the CTP portfolio in run-off and the expiry of the claim period, there was little utility in requiring the scheme summary to be given to holders of policies with no unsettled or otherwise outstanding notified claims. For policyholders and claimants who would be notified, use of currently known addresses was appropriate provided Zurich undertook the proposed returned mail procedures and sent summaries for new claims. The alternative notification steps, including mail-out, publication, website access, inspection facilities and copies on request, were likely to bring forth any potential reasonably based objection. APRA supported the...

Jurisdiction
Australia
Judgment Date
17 October 2018
Procedural Posture
Application in Relation to Transfer of Insurance Business Under the Insurance Act 1973 (cth) / Application to Dispense With the Requirements of S 17 C(2)(c) Before Confirmation Hearing Under S 17 F(1)
Outcome
Orders made substantially as proposed, including dispensation under s 17C(5) of the Insurance Act 1973 (Cth) conditional on compliance with alternative notification procedures.
Legal Topics
['transfer of Insurance Business' 'dispensation From Giving Approved Scheme Summary to Every Affected Policyholder' 'new South Wales Motor Vehicle Compulsory Third Party Insurance Portfolio' 'alternative Notification Procedure']
['insurance Law' 'prudential Regulation'] ['transfer of Insurance Business' 'dispensation From Giving Approved Scheme Summary to Every Affected Policyholder' 'new South Wales Motor Vehicle Compulsory Third Party Insurance Portfolio' 'alternative Notification Procedure']

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Procedural Posture

Application in Relation to Transfer of Insurance Business Under the Insurance Act 1973 (cth) / Application to Dispense With the Requirements of S 17 C(2)(c) Before Confirmation Hearing Under S 17 F(1)

Legal Issues

  1. 1 ['Whether the Court should dispense with compliance with s 17C(2)(c) of the Insurance Act 1973 (Cth) insofar as it required an approved summary of the scheme to be given to certain holders of Zurich NSW CTP Policies.' 'Whether the proposed alternative notification procedure was suitable and adequate to notify affected policyholders, claimants and relevant stakeholders of the proposed scheme.' 'Whether use of currently known addresses and returned mail follow-up procedures was appropriate for policyholders and claimants to whom the scheme summary would be sent.']

Ratio Decidendi

Dispensation was appropriate because, given the nature of the CTP portfolio in run-off and the expiry of the claim period, there was little utility in requiring the scheme summary to be given to holders of policies with no unsettled or otherwise outstanding notified claims. For policyholders and claimants who would be notified, use of currently known addresses was appropriate provided Zurich undertook the proposed returned mail procedures and sent summaries for new claims. The alternative notification steps, including mail-out, publication, website access, inspection facilities and copies on request, were likely to bring forth any potential reasonably based objection. APRA supported the...

Court Disposition

Orders made substantially as proposed, including dispensation under s 17C(5) of the Insurance Act 1973 (Cth) conditional on compliance with alternative notification procedures.

Orders

  • ['Pursuant to s 17C(5) of the Insurance Act 1973 (Cth), the need for the applicants to comply with s 17C(2)(c) was dispensed with insofar as it required an approved summary of the scheme to be given to specified holders of Zurich NSW CTP Policies, on condition that Orders 2 to 5 were complied with.' 'Zurich was...