Commonwealth Numbered Acts

CANNED FRUITS MARKETING AMENDMENT ACT 1984 No. 148 of 1984 - SECT 5

5. After section 11 of the Principal Act the following section is inserted:
Insurance

"11A. (1) In this section, 'relevant risk' means the risk of loss or
deterioration of, or damage to, canned fruits acquired by the Corporation
under this Act.

"(2) The Corporation may insure against relevant risks.

"(3) The cost to the Corporation of the insurance permitted by sub-section (2)
shall be met out of the proceeds of the disposal by the Corporation of the
canned fruits covered by the insurance and, for that purpose, the Corporation
shall, from time to time, fix an insurance reimbursement rate.

"(4) So long as the Corporation is not fully insured by policies of insurance
against all relevant risks, the Corporation shall maintain an account, to be
known as the 'insurance account', for the purpose of making provision against
relevant risks so far as they are not covered by insurance.

"(5) The Corporation shall pay into the insurance account such amounts as, in
the opinion of the Corporation, ensure that the amount from time to time
standing to the credit of the insurance account is sufficient for the purpose
of making adequate provision against relevant risks so far as those risks are
not covered by insurance.

"(6) Payments by the Corporation into the insurance account in accordance with
sub-section (5) shall be reimbursed, or paid, out of the proceeds of the
disposal by the Corporation of canned fruits, being canned fruits against
relevant risks in respect of which the Corporation was not fully insured, and,
for that purpose, the Corporation shall, from time to time, fix an insurance
account reimbursement rate.

"(7) Money in the insurance account may be applied only in payment of-

   (a)  where the Corporation suffers loss, not fully covered by insurance, by
        reason of a relevant risk-such amount in respect of that loss as the
        Corporation considers appropriate having regard to the provisions made
        under this section in lieu of insurance against that risk; and

   (b)  such amounts as, in the opinion of the Corporation, are appropriate to
        make provision for expenses or other liabilities that have been or
        will be incurred by the Corporation in maintaining the insurance
        account or otherwise in or in connection with making provision against
        relevant risks so far as they are not covered by insurance.



"(8) The Minister may, by determination in writing-

   (a)  set guidelines for the purpose of the exercise by the Corporation of
        its powers under this section; and

   (b)  revoke or vary guidelines set for that purpose or set new guidelines
        for that purpose, and shall give the Corporation a copy of each
        determination made under this sub-section.

"(9) The Corporation shall not exercise its powers under this section
otherwise than in accordance with any guidelines having effect from time to
time under sub-section (8).".