Commonwealth Consolidated Acts

INSURANCE CONTRACTS ACT 1984 - SECT 55A

  (1)   If:

  (a)   an insured has entered into a contract of insurance with an insurer; and

  (b)   ASIC is satisfied that the insured or any third party beneficiary under the contract has suffered damage, or is likely to suffer damage, because the terms of the contract, or the conduct of the insurer, breaches the requirements of this Act;

ASIC may, by application, if ASIC is of the opinion that it is in the public interest to do so:

  (c)   bring an action against the insurer on behalf of the insured or third party beneficiary under or in respect of that contract; or

  (d)   take over and continue, on behalf of the insured or third party beneficiary, an action brought against the insurer by the insured or third party beneficiary under or in respect of that contract.

  (2)   If:

  (a)   a number of insureds have entered into contracts of insurance with an insurer; and

  (b)   ASIC is satisfied that those insureds or any third party beneficiaries under the contract have suffered damage, or are likely to suffer damage, because the terms of the contracts, or the conduct of the insurer, breaches the requirements of this Act;

ASIC may, by application, if ASIC is of the opinion that it is in the public interest to do so, bring a single action against the insurer on behalf of all of those insureds or third party beneficiaries under or in respect of the contracts so entered into.

  (3)   ASIC may only bring or take over an action under subsection   (1), or bring an action under subsection   (2), if ASIC has obtained the written consent of the insured or third party beneficiary, or of each of the insureds or third party beneficiaries, on whose behalf the action is being brought or is being continued.