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This is a Bill, not an Act. For current law, see the Acts databases.
2010-2011-2012-2013
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Insurance Contracts Amendment (Unfair
Terms) Bill 2013
No. , 2013
(Treasury)
A Bill for an Act to amend the Insurance Contracts
Act 1984, and for related purposes
i Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedule(s) ........................................................................................ 2
Schedule 1--Amendment of the Insurance Contracts Act 1984
3
Insurance Contracts Act 1984
3
Schedule 2--Other amendments
20
Australian Securities and Investments Commission Act 2001
20
Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013 1
A Bill for an Act to amend the Insurance Contracts
1
Act 1984, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act may be cited as the Insurance Contracts Amendment
5
(Unfair Terms) Act 2013.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
12
2 Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013
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. Schedules 1
and 2
The day after the end of the period of 12
months beginning on the day this Act
receives the Royal Assent.
Note:
This table relates only to the provisions of this Act as originally
1
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be edited, in any published version of this Act.
6
3 Schedule(s)
7
Each Act that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
Amendment of the Insurance Contracts Act 1984 Schedule 1
Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013 3
Schedule 1
--
Amendment of the Insurance
1
Contracts Act 1984
2
3
Insurance Contracts Act 1984
4
1 Subsection 11(1)
5
Insert:
6
applied enforcement provisions of the ASIC Act means the
7
provisions of the ASIC Act applied by subsection 14H(1) of this
8
Act.
9
2 Subsection 11(1)
10
Insert:
11
applied investigation provisions of the ASIC Act means the
12
provisions of the ASIC Act applied by subsection 14H(2) of this
13
Act.
14
3 Subsection 11(1)
15
Insert:
16
ASIC Act means the Australian Securities and Investments
17
Commission Act 2001.
18
4 Subsection 11(1)
19
Insert:
20
consumer contract has the meaning given by subsection 14B(4).
21
5 Subsection 11(1)
22
Insert:
23
standard form consumer contract of general insurance has the
24
meaning given by subsection 14B(3).
25
6 Subsection 11(1)
26
Insert:
27
Schedule 1 Amendment of the Insurance Contracts Act 1984
4 Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013
transparent, in relation to a term of a standard form consumer
1
contract of general insurance, has the meaning given by
2
subsection 14C(3).
3
7 Subsection 11(1)
4
Insert:
5
unfair, in relation to a term of a standard form consumer contract
6
of general insurance, has the meaning given by subsection 14C(1).
7
8 Subsection 11(1)
8
Insert:
9
upfront price, in relation to a standard form consumer contract of
10
general insurance, has the meaning given by subsection 14E(2).
11
9 Subsection 11C(1)
12
Omit "ASIC may", substitute "Subject to subsection 11G(1), ASIC
13
may".
14
10 Subsection 11D(1)
15
Omit "ASIC may", substitute "Subject to subsection 11G(1), ASIC
16
may".
17
11 Subsection 11F(1)
18
Omit "ASIC may", substitute "Subject to subsection 11G(2), ASIC
19
may".
20
12 At the end of Part 1A
21
Add:
22
11G ASIC must not exercise powers under this Part in relation to
23
unfair terms in certain contracts of general insurance
24
Supervisory powers
25
(1) ASIC must not exercise the power conferred by subsection 11C(1)
26
or 11D(1):
27
(a) to investigate whether an insurer has relied on, or purported
28
to rely on, a term of a standard form consumer contract of
29
general insurance that the Court has declared, under
30
Amendment of the Insurance Contracts Act 1984 Schedule 1
Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013 5
section 12GND of the applied enforcement provisions of the
1
ASIC Act, to be an unfair term; or
2
(b) for any purpose connected with such an investigation.
3
Note 1:
Division 2 of Part II of this Act deals with unfair terms in standard
4
form consumer contracts of general insurance.
5
Note 2:
ASIC may use its powers in the applied investigation provisions of the
6
ASIC Act for a purpose referred to in this subsection (see
7
subsection 14H(2) of this Act).
8
Power to intervene in proceedings
9
(2) ASIC must not exercise the power conferred by subsection 11F(1)
10
to intervene in a proceeding relating to whether an insurer has
11
failed to comply with the duty of the utmost good faith under
12
section 14B.
13
Note:
ASIC may use the power in section 12GO of the applied enforcement
14
provisions of the ASIC Act to intervene in a proceeding of a kind
15
referred to in this subsection.
16
13 Before section 12
17
Insert:
18
Division 1--General
19
14 Before section 15
20
Insert:
21
Division 2--Unfair terms in certain contracts of general
22
insurance
23
14B Unfair terms in standard form consumer contracts of general
24
insurance
25
(1) An insurer under a standard form consumer contract of general
26
insurance fails to comply with the duty of the utmost good faith in
27
relation to the contract if:
28
(a) a term of the contract has been declared to be an unfair term
29
under section 12GND of the applied enforcement provisions
30
of the ASIC Act; or
31
(b) the insurer relies on, or purports to rely on, such a term.
32
Schedule 1 Amendment of the Insurance Contracts Act 1984
6 Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013
Note 1:
The insurer may not rely on the unfair term (see subsection 14(1)).
1
Note 2:
A failure to comply with the duty of the utmost good faith is a breach
2
of the requirements of this Act (see subsection 13(2)).
3
(2) The contract continues to bind the parties if it is capable of
4
operating without the unfair term being relied on.
5
Definitions
6
(3) A standard form consumer contract of general insurance is a
7
consumer contract that is:
8
(a) a standard form contract; and
9
(b) a contract of general insurance.
10
(4) A consumer contract is a contract at least one of the parties to
11
which is an individual whose acquisition of what is supplied under
12
the contract is wholly or predominantly an acquisition for personal,
13
domestic or household use or consumption.
14
14C Meaning of unfair
15
(1) A term of a standard form consumer contract of general insurance
16
is unfair if:
17
(a) it would cause a significant imbalance in the parties' rights
18
and obligations arising under the contract; and
19
(b) it is not reasonably necessary in order to protect the
20
legitimate interests of the party who would be advantaged by
21
the term; and
22
(c) it would cause detriment (whether financial or otherwise) to a
23
party if it were to be applied or relied on.
24
(2) In determining whether a term of a standard form consumer
25
contract of general insurance is unfair under subsection (1), a court
26
may take into account such matters as it thinks relevant, but must
27
take into account the following:
28
(a) the extent to which the term is transparent;
29
(b) the contract as a whole.
30
(3) A term of a standard form consumer contract of general insurance
31
is transparent if:
32
(a) the insurer under the contract clearly informed the other party
33
(or parties) to the contract of the effect of the term; and
34
Amendment of the Insurance Contracts Act 1984 Schedule 1
Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013 7
(b) the term is presented clearly; and
1
(c) the term is readily available to any party affected by the term.
2
(4) For the purposes of paragraph (1)(b), a term of a standard form
3
consumer contract of general insurance is presumed not to be
4
reasonably necessary in order to protect the legitimate interests of
5
the party who would be advantaged by the term, unless that party
6
proves otherwise.
7
(5) An insurer under a particular standard form consumer contract of
8
general insurance is taken to have proved that a term of the
9
contract is reasonably necessary in order to protect the legitimate
10
interests of the insurer, if the insurer proves that the term
11
reasonably reflects the underwriting risk accepted by the insurer in
12
relation to that contract.
13
14D Examples of unfair terms
14
(1) Without limiting section 14C, the following are examples of the
15
kinds of terms of a standard form consumer contract of general
16
insurance that may be unfair:
17
(a) a term that permits, or has the effect of permitting, one party
18
(but not another party) to avoid or limit performance of the
19
contract;
20
(b) a term that permits, or has the effect of permitting, one party
21
(but not another party) to terminate the contract;
22
(c) a term that penalises, or has the effect of penalising, one
23
party (but not another party) for a breach or termination of
24
the contract;
25
(d) a term that permits, or has the effect of permitting, one party
26
(but not another party) to vary the terms of the contract;
27
(e) a term that permits, or has the effect of permitting, one party
28
(but not another party) to renew or not renew the contract;
29
(f) a term that permits, or has the effect of permitting, one party
30
to vary the upfront price payable under the contract without
31
the right of another party to terminate the contract;
32
(g) a term that permits, or has the effect of permitting, one party
33
unilaterally to vary financial services to be supplied under the
34
contract;
35
Schedule 1 Amendment of the Insurance Contracts Act 1984
8 Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013
(h) a term that permits, or has the effect of permitting, one party
1
unilaterally to determine whether the contract has been
2
breached or to interpret its meaning;
3
(i) a term that limits, or has the effect of limiting, one party's
4
vicarious liability for its agents;
5
(j) a term that permits, or has the effect of permitting, one party
6
to assign the contract to the detriment of another party
7
without that other party's consent;
8
(k) a term that limits, or has the effect of limiting, one party's
9
right to sue another party;
10
(l) a term that limits, or has the effect of limiting, the evidence
11
one party can adduce in proceedings relating to the contract;
12
(m) a term that imposes, or has the effect of imposing, the
13
evidential burden on one party in proceedings relating to the
14
contract;
15
(n) a term of a kind, or a term that has an effect of a kind,
16
prescribed by the regulations.
17
(2) Before the Governor-General makes a regulation for the purposes
18
of paragraph (1)(n) prescribing a kind of term, or a kind of effect
19
that a term has, the Minister must take into consideration:
20
(a) the detriment that a term of that kind would cause to
21
consumers; and
22
(b) the impact on business generally of prescribing that kind of
23
term or effect; and
24
(c) the public interest.
25
14E Terms that define main subject-matter of standard form
26
consumer contracts of general insurance etc. are
27
unaffected
28
(1) Section 14B does not apply to a term of a standard form consumer
29
contract of general insurance to the extent that, but only to the
30
extent that, the term:
31
(a) defines the main subject-matter of the contract; or
32
(b) sets the upfront price payable under the contract; or
33
(c) is a term required, or expressly permitted, by a law of the
34
Commonwealth or a State or Territory.
35
Amendment of the Insurance Contracts Act 1984 Schedule 1
Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013 9
(2) The upfront price payable under a standard form consumer
1
contract of general insurance is the consideration that:
2
(a) is provided, or is to be provided, for the supply under the
3
contract; and
4
(b) is disclosed at or before the time the contract is entered into;
5
but does not include any other consideration that is contingent on
6
the occurrence or non-occurrence of a particular event.
7
14F Standard form contracts
8
(1) If a party to a proceeding alleges that a contract of general
9
insurance is a standard form contract, it is presumed to be a
10
standard form contract unless another party to the proceeding
11
proves otherwise.
12
(2) In determining whether a contract of general insurance is a
13
standard form contract, a court may take into account such matters
14
as it thinks relevant, but must take into account the following:
15
(a) whether one of the parties has all or most of the bargaining
16
power relating to the transaction;
17
(b) whether the contract was prepared by one party before any
18
discussion relating to the transaction occurred between the
19
parties;
20
(c) whether another party was, in effect, required either to accept
21
or reject the terms of the contract (other than the terms
22
referred to in subsection 14E(1)) in the form in which they
23
were presented;
24
(d) whether another party was given an effective opportunity to
25
negotiate the terms of the contract that were not the terms
26
referred to in subsection 14E(1);
27
(e) whether the terms of the contract (other than the terms
28
referred to in subsection 14E(1)) take into account the
29
specific characteristics of another party or the particular
30
transaction;
31
(f) any other matter prescribed by the regulations.
32
14G Contracts to which this Division does not apply
33
This Division does not apply to a standard form consumer contract
34
of general insurance that is the constitution of a company, managed
35
investment scheme or other kind of body.
36
Schedule 1 Amendment of the Insurance Contracts Act 1984
10 Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013
14H Application of ASIC Act
1
Applied enforcement provisions
2
(1) The following provisions of the ASIC Act apply, with the
3
modifications set out in Part 1 of Schedule 1 to this Act (and any
4
other modifications prescribed by the regulations), in relation to a
5
standard form consumer contract of general insurance:
6
(a) section 12AC (other than subsection (2));
7
(b) Subdivision G of Division 2 of Part 2 (other than
8
sections 12GB to 12GCA, 12GF, 12GI, 12GLA to 12GLD
9
and 12GNA);
10
(c) Subdivision H of Division 2 of Part 2;
11
(d) any provisions that define expressions used in the provisions
12
referred to in paragraphs (a) to (c).
13
Applied investigation provisions
14
(2) The following provisions of the ASIC Act apply, with the
15
modifications set out in Part 2 of Schedule 1 to this Act (and any
16
other modifications prescribed by the regulations), in relation to a
17
standard form consumer contract of general insurance:
18
(a) Division 1 of Part 3 (other than section 15);
19
(b) Division 2 of Part 3;
20
(c) Division 3 of Part 3 (other than sections 29, 30A, 39A and
21
39B);
22
(d) Division 5 of Part 3;
23
(e) Division 7 of Part 3;
24
(f) Division 9 of Part 3;
25
(g) Division 10 of Part 3 (other than section 86);
26
(h) any provisions that define expressions used in the provisions
27
referred to in paragraphs (a) to (g).
28
14J Court's powers in relation to unfair terms in standard form
29
contracts of general insurance
30
(1) In proceedings in respect of a standard form consumer contract of
31
general insurance that includes a term that has been declared to be
32
an unfair term under section 12GND of the applied enforcement
33
provisions of the ASIC Act:
34
Amendment of the Insurance Contracts Act 1984 Schedule 1
Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013 11
(a) the court must consider the remedies available under this Act
1
and under the applied enforcement provisions of the ASIC
2
Act; and
3
(b) if the court decides to exercise a power in relation to the
4
contract--the court must exercise the power that is most
5
appropriate in the circumstances.
6
(2) In exercising a power in proceedings of a kind referred to in
7
subsection (1), the court must have regard to:
8
(a) the contract as a whole; and
9
(b) the extent to which the insurer under the contract has
10
complied with the requirements of this Act (other than
11
section 14B) in relation to the contract.
12
Division 3--Other provisions
13
15 At the end of section 15
14
Add:
15
Exception--standard form consumer contracts of general
16
insurance
17
(3) Despite subsections (1) and (2), certain standard form consumer
18
contracts of general insurance are capable of being made the
19
subject of relief under the applied enforcement provisions of the
20
ASIC Act.
21
Note 1:
See Division 2 of this Part (which deals with unfair terms in standard
22
form consumer contracts of general insurance).
23
Note 2:
The applied enforcement provisions of the ASIC Act are the
24
provisions of the ASIC Act applied by subsection 14H(1) of this Act.
25
16 At the end of section 55A
26
Add:
27
Exception--standard form consumer contracts of general
28
insurance
29
(4) Despite subsections (1) and (2), ASIC must not bring, or take over
30
and continue, an action on behalf of one or more insureds or third
31
party beneficiaries under a standard form consumer contract of
32
general insurance, if the damage suffered, or the damage that is
33
Schedule 1 Amendment of the Insurance Contracts Act 1984
12 Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013
likely to be suffered, is because the insurer under the contract has
1
failed to comply with the duty of the utmost good faith in relation
2
to the contract under section 14B (which relates to unfair terms).
3
Note:
ASIC may use its powers under the applied enforcement provisions of
4
the ASIC Act in this case (see subsection 14H(1) of this Act).
5
17 At the end of the Act
6
Add:
7
Schedule 1--Modifications of applied ASIC
8
Act provisions
9
Note:
See section 14H.
10
Part 1--Applied enforcement provisions
11
12
1 General modifications
13
(1) A reference in the applied enforcement provisions of the ASIC Act
14
to a provision included in those provisions is to be read as a
15
reference to that provision as it applies under subsection 14H(1) of
16
this Act.
17
(2) Except as provided in subclause (3), a reference in the applied
18
enforcement provisions of the ASIC Act to Division 2 of Part 2 of
19
the ASIC Act is to be read as a reference to the applied
20
enforcement provisions of the ASIC Act.
21
(3) A reference in the applied enforcement provisions of the ASIC Act
22
to:
23
(a) a contravention of Division 2 of Part 2 of the ASIC Act; or
24
(b) a contravention of a provision of Division 2 of Part 2 of the
25
ASIC Act;
26
is to be read as a reference to relying on, or purporting to rely on, a
27
term of a standard form consumer contract of general insurance
28
that the Court has declared, under section 12GND of the applied
29
enforcement provisions of the ASIC Act, to be an unfair term.
30
(4) A reference in the applied enforcement provisions of the ASIC Act
31
to Part 3 of the ASIC Act is to be read as a reference to the applied
32
investigations provisions of the ASIC Act.
33
Amendment of the Insurance Contracts Act 1984 Schedule 1
Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013 13
2 Injunctions
1
In addition to the modifications referred to in clause 1,
2
section 12GD of the ASIC Act applies as if subsection (9) were
3
omitted.
4
3 Findings in proceedings to be evidence
5
In addition to the modifications referred to in clause 1,
6
section 12GG of the ASIC Act applies as if:
7
(a) the reference to a proceeding against a person under
8
section 12GF of the ASIC Act were omitted; and
9
(b) the references to sections 12GBC, 12GLA and 12GLB of the
10
ASIC Act were omitted; and
11
(c) the reference to an offence against section 12GB of the ASIC
12
Act were omitted.
13
4 Other orders
14
In addition to the modifications referred to in clause 1,
15
section 12GM of the ASIC Act applies as if:
16
(a) subsection (1) were amended by omitting "or makes an order
17
under section 12GF, 12GLA or 12GLB"; and
18
(b) subsection (4) were amended by omitting "this Part" and
19
substituting "this Subdivision"; and
20
(c) subsections (6), (7A) and (10) were omitted; and
21
(d) the following subsection were inserted before subsection (8):
22
(7B) Despite subsection (7), the Court must not, under subsection (1) or
23
(2), make an order of the kind referred to in paragraph (7)(a), (b) or
24
(c) in relation to a standard form consumer contract of general
25
insurance.
26
5 Power of Court to prohibit payment or transfer of money or other
27
property
28
In addition to the modifications referred to in clause 1,
29
section 12GN of the ASIC Act applies as if:
30
(a) paragraphs (1)(a) and (c) were omitted; and
31
(b) paragraph (1)(e) were amended by omitting "(a)," and ", (c)";
32
and
33
Schedule 1 Amendment of the Insurance Contracts Act 1984
14 Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013
(c) paragraph (3)(b) were amended by omitting "this Part", and
1
substituting "this Subdivision"; and
2
(d) subsection (9) were omitted.
3
6 Orders to redress loss or damage suffered by non-party consumers
4
etc.
5
In addition to the modifications referred to in clause 1,
6
section 12GNB of the ASIC Act applies as if:
7
(a) subparagraph (1)(a)(i) were omitted; and
8
(b) subparagraph (1)(a)(ii) were amended by omitting "a
9
consumer contract", and substituting "a standard form
10
consumer contract of general insurance"; and
11
(c) paragraph (2)(a) were omitted; and
12
(d) paragraph (5)(a) were omitted; and
13
(e) subsections (6) and (10) were omitted.
14
7 Kinds of orders that may be made to redress loss or damage
15
suffered by non-party consumers etc.
16
In addition to the modifications referred to in clause 1,
17
section 12GNC of the ASIC Act applies as if:
18
(a) the subsection number "(1)" were inserted before "Without
19
limiting"; and
20
(b) the following subsection were added at the end:
21
(2) Despite subsection (1), the Court must not, under
22
subsection 12GNB(1), make an order of the kind referred to in
23
paragraph (1)(a), (b) or (c) of this section in relation to a standard
24
form consumer contract of general insurance.
25
8 Declarations
26
Section 12GND of the ASIC Act applies as if:
27
(a) subsection (1) were amended by:
28
(i) omitting "a consumer contract", and substituting "a
29
standard form consumer contract of general insurance";
30
and
31
Amendment of the Insurance Contracts Act 1984 Schedule 1
Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013 15
(ii) adding at the end "(within the meaning of
1
subsection 14C(1) of the Insurance Contracts Act
2
1984)"; and
3
(b) subsection (1A) were omitted.
4
9 Disclosure of documents by ASIC
5
In addition to the modifications referred to in clause 1,
6
section 12HB of the ASIC Act applies as if paragraph (1)(b) were
7
amended by omitting "section 12GLA or 12GLB or".
8
10 Jurisdiction of Court to make declarations and orders
9
In addition to the modifications referred to in clause 1,
10
section 12HD of the ASIC Act applies as if subparagraph (1)(a)(i)
11
were omitted.
12
Part 2--Applied investigation provisions
13
14
11 General modifications
15
(1) A reference in the applied investigation provisions of the ASIC Act
16
to a provision included in those provisions is to be read as a
17
reference to that provision as it applies under subsection 14H(2) of
18
this Act.
19
(2) A reference in the applied investigation provisions of the ASIC Act
20
to Part 3 of the ASIC Act is to be read as a reference to the applied
21
investigation provisions of the ASIC Act.
22
(3) A reference in the applied investigation provisions of the ASIC Act
23
to Division 2 of Part 2 of the ASIC Act is to be read as a reference
24
to the applied enforcement provisions of the ASIC Act.
25
12 General powers of investigation
26
Section 13 of the ASIC Act applies as if:
27
(a) subsections (1), (2) and (3) were omitted; and
28
(b) subsection (6) were omitted and the following subsection
29
were substituted:
30
Schedule 1 Amendment of the Insurance Contracts Act 1984
16 Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013
(6) If ASIC has reason to suspect that an insurer has relied on, or
1
purported to rely on, a term of a standard form consumer contract
2
of general insurance that the Court has declared, under
3
section 12GND of Division 2 of Part 2, to be an unfair term, ASIC
4
may make such investigation as it thinks appropriate.
5
13 Minister may direct investigations
6
Section 14 of the ASIC Act applies as if subsection (2) were
7
omitted and the following subsection were substituted:
8
(2) This subsection applies to a suspected reliance, or purported
9
reliance, by an insurer on a term of a standard form consumer
10
contract of general insurance that the Court has declared, under
11
section 12GND of Division 2 of Part 2, to be an unfair term.
12
14 Final report on investigation
13
In addition to the modifications referred to in clause 11, section 17
14
of the ASIC Act applies as if subsection (1) were amended by
15
omitting "or 15".
16
15 When inspection and audit powers may be exercised
17
In addition to the modifications referred to in clause 11, section 28
18
of the ASIC Act applies as if:
19
(a) "sections 29, 30A, 35, 36 and 39A" were omitted, and
20
"sections 35 and 36" were substituted; and
21
(b) paragraphs (a), (b) and (c) were omitted.
22
16 Notice to produce books about affairs of body corporate
23
In addition to the modifications referred to in clause 11, section 30
24
of the ASIC Act applies as if:
25
(a) the heading were amended by omitting "or registered
26
scheme"; and
27
(b) subsection (2) were omitted.
28
17 Notice to produce books about financial products
29
In addition to the modifications referred to in clause 11, section 31
30
of the ASIC Act applies as if:
31
Amendment of the Insurance Contracts Act 1984 Schedule 1
Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013 17
(a) paragraphs (1)(a) and (b) were omitted; and
1
(b) paragraph (1)(e) were amended by omitting "(a), (b),"; and
2
(c) paragraphs (1)(g) and (j) were omitted.
3
18 Notice to produce documents in person's possession
4
In addition to the modifications referred to in clause 11, section 33
5
of the ASIC Act applies as if subsection (2) were omitted.
6
19 ASIC may authorise persons to require production of books,
7
giving of information etc.
8
In addition to the modifications referred to in clause 11, section 34
9
of the ASIC Act applies as if subsection (3) were amended by
10
omitting "30A,".
11
20 Powers where books produced or seized
12
In addition to the modifications referred to in clause 11, section 37
13
of the ASIC Act applies as if paragraphs (5)(b) and (c) were
14
omitted and the following paragraphs were substituted:
15
(b) for the purpose referred to in paragraph 28(d); or
16
(c) for a decision to be made about whether or not a proceeding
17
to which the books concerned would be relevant should be
18
begun; or
19
21 Non-compliance with requirements made under applied
20
investigations provisions
21
In addition to the modifications referred to in clause 11, section 63
22
of the ASIC Act applies as if:
23
(a) paragraph (1)(c) were amended by omitting "30A,"; and
24
(b) subsection (2) were omitted; and
25
(c) subsection (3) were amended by omitting "or 29(2)" and "or
26
58(1), (2) or (4)"; and
27
(d) subsection (4) were amended by omitting "or 48(2)"; and
28
(e) subsection (5) were amended by omitting ", (1A), (2)".
29
Schedule 1 Amendment of the Insurance Contracts Act 1984
18 Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013
22 Self-incrimination
1
In addition to the modifications referred to in clause 11, section 68
2
of the ASIC Act applies as if:
3
(a) subsection (1) were amended by omitting "of Division 3 of
4
Part 10, and of Division 2 of Part 11,"; and
5
(b) paragraph (2)(a) were amended by omitting "Division 3 of
6
Part 10 or Division 2 of Part 11,".
7
23 Legal professional privilege
8
In addition to the modifications referred to in clause 11, section 69
9
of the ASIC Act applies as if paragraph (1)(a) were amended by
10
omitting "Division 3 of Part 10, or Division 2 of Part 11,".
11
24 Powers of Court where non-compliance with applied
12
investigation provisions
13
In addition to the modifications referred to in clause 11, section 70
14
of the ASIC Act applies as if subsection (1) were amended by
15
omitting "(other than Division 8)".
16
25 Copies of, or extracts from, certain books
17
In addition to the modifications referred to in clause 11, section 80
18
of the ASIC Act applies as if paragraph (1)(aa) were omitted.
19
26 Evidence of authority
20
In addition to the modifications referred to in clause 11, section 85
21
of the ASIC Act applies as if "(other than Division 6)" were
22
omitted.
23
27 Allowances and expenses
24
In addition to the modifications referred to in clause 11, section 89
25
of the ASIC Act applies as if subsection (2) were omitted.
26
Amendment of the Insurance Contracts Act 1984 Schedule 1
Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013 19
18 Application of amendments
1
(1)
The amendments made by this Schedule apply to a standard form
2
consumer contract of general insurance that is originally entered into on
3
or after the commencement of this Schedule (the commencement day).
4
(2)
However, if a standard form consumer contract of general insurance
5
that was originally entered into before the commencement day is
6
renewed on or after that day, the amendments made by this Schedule
7
apply to the contract as renewed, on and after the day (the renewal day)
8
on which the renewal takes effect, in relation to conduct that occurs on
9
or after the renewal day.
10
(3)
Also, if:
11
(a) a term of a standard form consumer contract of general
12
insurance that was originally entered into before the
13
commencement day is varied on or after that day; and
14
(b) subitem (2) has not already applied in relation to the contract;
15
the amendments made by this Schedule apply in relation to the term as
16
varied, on and after the day (the variation day) on which the variation
17
takes effect, in relation to conduct that occurs on or after the variation
18
day.
19
Schedule 2 Other amendments
20 Insurance Contracts Amendment (Unfair Terms) Bill 2013 No. , 2013
Schedule 2
--
Other amendments
1
2
Australian Securities and Investments Commission Act 2001
3
1 Subsection 12BA(1)
4
Insert:
5
standard form consumer contract of general insurance has the
6
meaning given by subsection 14B(3) of the Insurance Contracts
7
Act 1984.
8
2 Subsection 12BF(1)
9
After "consumer contract", insert "(other than a standard form
10
consumer contract of general insurance)".
11
3 At the end of subsection 12BF(1)
12
Add:
13
Note:
See Division 2 of Part II of the Insurance Contracts Act 1984 in
14
relation to unfair terms in standard form consumer contracts of general
15
insurance.
16
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