Appropriation (HIH Assistance) Act 2001

No. 74, 2001

An Act to appropriate money to provide financial assistance to HIH eligible persons, and for related purposes

Appropriation (HIH Assistance) Act 2001

No. 74, 2001

An Act to appropriate money to provide financial assistance to HIH eligible persons, and for related purposes

[Assented to 30 June 2001]

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Appropriation (HIH Assistance) Act 2001.

2 Commencement

This Act commences on the day on which it receives the Royal Assent.

3 Definitions

In this Act, unless the contrary intention appears:

HIH company means any of the following:

(a) CIC Insurance Limited;

(b) FAI General Insurance Company Limited;

(d) FAI Traders Insurance Company Pty Limited;

(e) HIH Casualty and General Insurance Limited;

(f) HIH Underwriting and Insurance (Australia) Pty Limited;

(g) World Marine & General Insurances Pty Limited.

HIH eligible person means a person who:

(a) is a policyholder, insured or beneficiary under a policy of insurance issued by a HIH company; and

(b) has suffered financial loss as a result of the insolvency of the HIH companies.

4 Appropriation

The Consolidated Revenue Fund is appropriated, to the extent of $640 million, for the following purposes:

(a) providing financial assistance to HIH eligible persons, either directly or indirectly;

(b) meeting administrative costs associated with providing that financial assistance.

Note: An example of indirect financial assistance is the Commonwealth making payments to another person who, under a contract or trust, is required to make payments to HIH eligible persons.