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This is a Bill, not an Act. For current law, see the Acts databases.
NSW Self Insurance Corporation
Amendment Bill 2013
No , 2013
A Bill for
An Act to amend the NSW Self Insurance Corporation Act 2004 to enable the
Corporation to provide certain principal arranged construction insurance and manage
the liabilities of certain State officials.
Clause 1 NSW Self Insurance Corporation Amendment Bill 2013
The Legislature of New South Wales enacts: 1
1 Name of Act 2
This Act is the NSW Self Insurance Corporation Amendment Act 2013. 3
2 Commencement 4
This Act commences on the date of assent to this Act. 5
Page 2
NSW Self Insurance Corporation Amendment Bill 2013
Amendment of NSW Self Insurance Corporation Act 2004 No 106 Schedule 1
Schedule 1 Amendment of NSW Self Insurance 1
Corporation Act 2004 No 106 2
[1] Section 3 Definitions 3
Insert in alphabetical order in section 3 (1): 4
construction contract means a contract or other agreement for 5
the carrying out of construction work. 6
Construction Risks Insurance Fund means the Fund established 7
under section 12C. 8
contractor, in relation to a construction contract, means a party 9
to the contract who undertakes to carry out the construction work 10
under the contract, and includes any subcontractors engaged by 11
such a party to carry out work on the party's behalf. 12
eligible State official means a person who is: 13
(a) an employee or officer of the State, or 14
(b) an employee, or a member, director or other officer, of an 15
authority of the State. 16
mandatory Government arranged construction insurance 17
means principal arranged construction insurance that the State or 18
an authority of the State is required (whether as a matter of law 19
or Government policy) to arrange with the Self Insurance 20
Corporation because of a direction of the Treasurer or the 21
Secretary of the Treasury. 22
Note. For example, the State or an authority of the State may, by means 23
of a Treasury Circular issued by the Secretary of the Treasury, be 24
required to arrange for specified insurance. 25
principal, in relation to a construction contract, means any of the 26
following: 27
(a) a party to the contract for which the construction work 28
under the contract is being carried out, 29
(b) a person (other than a party to the contract) who is a 30
member of a partnership, joint venture or other 31
arrangement for the benefit of which the construction work 32
under the contract is being carried out. 33
principal arranged construction insurance means insurance that 34
is arranged by a principal in relation to a construction contract to 35
cover principals and contractors with respect to the risks 36
associated with the construction work to which the construction 37
contract relates. 38
Page 3
NSW Self Insurance Corporation Amendment Bill 2013
Schedule 1 Amendment of NSW Self Insurance Corporation Act 2004 No 106
[2] Section 3 (1), definition of "Government managed fund scheme" 1
Omit "or an authority of the State" wherever occurring. 2
Insert instead ", an authority of the State or an eligible State official". 3
[3] Section 3 (1), definition of "Government managed fund scheme" 4
Omit "but does not include any arrangement under which home warranty 5
insurance is provided (or the Home Warranty Insurance Fund is managed) by 6
or on behalf of the Self Insurance Corporation.". 7
Insert instead: 8
but does not include any arrangement under which: 9
(c) home warranty insurance is provided (or the Home 10
Warranty Insurance Fund is managed) by or on behalf of 11
the Self Insurance Corporation, or 12
(d) principal arranged construction insurance is provided (or 13
the Construction Risks Insurance Fund is managed) by or 14
on behalf of the Self Insurance Corporation. 15
[4] Section 8 Specific functions in relation to Government managed fund 16
schemes 17
Insert "(including by providing indemnities)" after "arrangements" in 18
section 8 (c). 19
[5] Section 8 (d) 20
Omit "or an authority of the State" wherever occurring. 21
Insert instead ", an authority of the State or an eligible State official". 22
[6] Section 8 (2)-(4) 23
Insert at the end of section 8: 24
(2) In exercising its functions under subsection (1) (c), the Self 25
Insurance Corporation may enter into contracts of insurance as 26
the insured but not as the insurer. 27
Note. The Self Insurance Corporation may, for example, obtain 28
insurance from another insurer to cover its own liabilities in providing 29
cover under a Government managed fund scheme. However, it may not 30
provide insurance to the State or any authority of the State or eligible 31
State official whose liabilities are covered by such a scheme. Their 32
liabilities may be managed by means of other agreements and 33
arrangements, including by the provision of indemnities. 34
(3) Nothing in the State Owned Corporations Act 1989 (including 35
clauses 5 and 6 of Schedule 10 to that Act) prevents the Self 36
Insurance Corporation from providing indemnities to, or entering 37
Page 4
NSW Self Insurance Corporation Amendment Bill 2013
Amendment of NSW Self Insurance Corporation Act 2004 No 106 Schedule 1
agreements or arrangements with, a director or other officer (or 1
any other person concerned, or taking part, in the management) 2
of a State owned corporation to cover the liabilities of such a 3
director, officer or person. 4
(4) Entering into insurance or other agreements or arrangements 5
(including the provision of indemnities) to cover the liabilities to 6
which a Government managed fund scheme applies is declared to 7
be an excluded matter for the purposes of the Corporations Act 8
2001 of the Commonwealth in relation to Chapter 7 (Financial 9
services and markets) of that Act. 10
Note. Section 5F of the Corporations Act 2001 of the Commonwealth 11
provides that if a State law declares a matter to be an excluded matter 12
for the purposes of that section in relation to all or part of the 13
Corporations legislation of the Commonwealth, then the provisions that 14
are the subject of the declaration will not apply in relation to that matter 15
in the State concerned. 16
[7] Section 8B Competition authorisations 17
Omit "Trade Practices Act 1974" wherever occurring in section 8B (1) 18
and (3). 19
Insert instead "Competition and Consumer Act 2010". 20
[8] Section 8C 21
Insert after section 8B: 22
8C Specific functions relating to principal arranged construction 23
insurance 24
(1) The Self Insurance Corporation has the following functions with 25
respect to principal arranged construction insurance: 26
(a) to carry on the business of providing principal arranged 27
construction insurance with respect to major capital works 28
projects in New South Wales, 29
(b) to manage the Construction Risks Insurance Fund, 30
(c) to enter into contracts, agreements or other arrangements 31
with other persons (including re-insurers) for services 32
relating to the exercise of the Corporation's functions in 33
connection with the provision of such principal arranged 34
construction insurance and the management of the 35
Construction Risks Insurance Fund. 36
Page 5
NSW Self Insurance Corporation Amendment Bill 2013
Schedule 1 Amendment of NSW Self Insurance Corporation Act 2004 No 106
(2) A project is a major capital works project for the purposes of 1
subsection (1) (a) if: 2
(a) the construction contract for the project provides for the 3
construction of a building, road, tramway, railway, bridge, 4
tunnel or other capital works, and 5
(b) one or more of the principals in relation to the construction 6
contract is or are the State or an authority of the State, and 7
(c) the project is: 8
(i) required to have mandatory Government arranged 9
construction insurance, or 10
(ii) a project that the Minister, by order published in the 11
Gazette, has declared to be a project involving major 12
capital works for the purposes of this section. 13
[9] Section 11 Self Insurance Fund 14
Insert "or Construction Risks Insurance Fund" after "Home Warranty 15
Insurance Fund" in section 11 (1) (f). 16
[10] Section 11 (2) 17
Omit "home warranty insurance and the management of the Home Warranty 18
Insurance Fund". 19
Insert instead "home warranty insurance or principal arranged construction 20
insurance or the management of the Home Warranty Insurance Fund or 21
Construction Risks Insurance Fund". 22
[11] Section 11 (2) (f) 23
Insert after section 11 (2) (e): 24
(f) payment into the Construction Risks Insurance Fund of 25
such amounts as may be approved by the Minister for 26
transfer into that Fund. 27
[12] Section 11 (3) 28
Omit "home warranty insurance or the operation of the Home Warranty 29
Insurance Fund". 30
Insert instead "home warranty insurance or principal arranged construction 31
insurance or the operation of the Home Warranty Insurance Fund or 32
Construction Risks Insurance Fund". 33
Page 6
NSW Self Insurance Corporation Amendment Bill 2013
Amendment of NSW Self Insurance Corporation Act 2004 No 106 Schedule 1
[13] Part 4, Division 3 1
Insert after Division 2: 2
Division 3 Construction Risks Insurance Fund 3
12C Construction Risks Insurance Fund 4
(1) There is to be established in the Special Deposits Account a 5
Construction Risks Insurance Fund (the Fund). 6
(2) The following are to be paid into the Fund: 7
(a) all money received by the Self Insurance Corporation as 8
insurance premiums for principal arranged construction 9
insurance that it provides, 10
(b) all money received by the Self Insurance Corporation from 11
re-insurers in connection with principal arranged 12
construction insurance that it provides, 13
(c) all money recovered by the Self Insurance Corporation by 14
the exercise of any right of subrogation or other right of 15
recovery in connection with principal arranged 16
construction insurance that it provides, 17
(d) all money received under any security, guarantee or 18
recourse held by the Self Insurance Corporation in respect 19
of any policies for principal arranged construction 20
insurance that it has issued, 21
(e) all money transferred to the Fund from the Self Insurance 22
Fund, 23
(f) all money advanced to the Fund by the Minister or 24
appropriated by Parliament for the purposes of the Fund, 25
(g) the proceeds of the investment of money in the Fund, 26
(h) all money directed or authorised to be paid into the Fund 27
by or under this or any other Act. 28
(3) Money may be paid from the Fund for any of the following 29
purposes: 30
(a) the payment of claims made under any principal arranged 31
construction insurance provided by the Self Insurance 32
Corporation, 33
(b) the payment of the costs (including disbursements and 34
commissions) of risk management, actuarial, agency, 35
brokerage, legal and other services provided in connection 36
with the administration of the principal arranged 37
Page 7
NSW Self Insurance Corporation Amendment Bill 2013
Schedule 1 Amendment of NSW Self Insurance Corporation Act 2004 No 106
construction insurance business of the Self Insurance 1
Corporation, 2
(c) the payment of amounts required to meet administrative 3
expenses in relation to the Fund, 4
(d) the payment into the Consolidated Fund of any amount 5
that the Self Insurance Corporation considers (after 6
applying an appropriate prudential margin) to be surplus to 7
the requirements of the Fund from time to time to repay 8
(whether in whole or in part) any money previously 9
advanced to the Fund by the Minister or appropriated by 10
Parliament for the purposes of the Fund, 11
(e) the payment of any other amounts directed or authorised to 12
be paid from the Fund by or under this or any other Act. 13
12D Investment of money in Construction Risks Insurance Fund 14
The Self Insurance Corporation may invest money in the 15
Construction Risks Insurance Fund: 16
(a) in the manner authorised by or under the Public 17
Authorities (Financial Arrangements) Act 1987, or 18
(b) if that Act does not confer power on the Self Insurance 19
Corporation to invest the money, in any other manner 20
approved by the Minister. 21
[14] Schedule 1 Savings, transitional and other provisions 22
Insert at the end of clause 1 (1): 23
any other Act that amends this Act 24
[15] Schedule 1, Part 4 25
Insert after Part 3: 26
Part 4 Provisions consequent on enactment of 27
NSW Self Insurance Corporation 28
Amendment Act 2013 29
5 Existing individual statements of cover 30
(1) Any statement of cover issued by the Self Insurance Corporation 31
before the commencement of the NSW Self Insurance 32
Corporation Amendment Act 2013 that purported to cover the 33
liabilities of an eligible State official on an individual basis is 34
taken to be (and always to have been) legally enforceable by the 35
official in its application to that official. 36
Page 8
NSW Self Insurance Corporation Amendment Bill 2013
Amendment of NSW Self Insurance Corporation Act 2004 No 106 Schedule 1
(2) A statement of cover for the purposes of subclause (1) is a 1
statement of Government policy issued by the Self Insurance 2
Corporation concerning the manner in which the Self Insurance 3
Fund is to be applied to meet the liabilities of authorities of the 4
State (or their employees, members, directors or other officers). 5
6 Transfer of money from Self Insurance Fund to Construction Risks 6
Insurance Fund 7
(1) This clause applies to any money deposited in the Self Insurance 8
Fund (existing principal arranged insurance funds) that: 9
(a) was deposited in the Self Insurance Fund before the 10
commencement of Division 3 of Part 4 of this Act, and 11
(b) would have been required to be paid into the Construction 12
Risks Insurance Fund had Division 3 of Part 4 of this Act 13
been in force when the money was originally received or 14
recovered by the Self Insurance Corporation. 15
(2) All existing principal arranged insurance funds are to be paid 16
from the Self Insurance Fund into the Construction Risks 17
Insurance Fund as soon as is reasonably practicable after the 18
establishment of the Construction Risks Insurance Fund. 19
Page 9
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