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Terrorism Insurance Regulations 2003

Authoritative Version
  • - F2013C00772
  • In force - Superseded Version
  • View Series
SR 2003 No. 162 Regulations as amended, taking into account amendments up to Terrorism Insurance Amendment Regulation 2013 (No. 1)
Principal Regulations
Administered by: Treasury
Registered 12 Sep 2013
Start Date 26 Jul 2013
End Date 30 Jun 2017
Table of contents.

Commonwealth Coat of Arms

Terrorism Insurance Regulations 2003

Statutory Rules No. 162, 2003 as amended

made under the

Terrorism Insurance Act 2003

Compilation start date:                     26 July 2013

Includes amendments up to:            SLI No. 193, 2013

 

About this compilation

This compilation

This is a compilation of the Terrorism Insurance Regulations 2003 as in force on 26 July 2013. It includes any commenced amendment affecting the legislation to that date.

This compilation was prepared on 30 August 2013.

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of each amended provision.

Uncommenced amendments

The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in the endnotes.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If a provision of the compiled law is affected by a modification that is in force, details are included in the endnotes.

Provisions ceasing to have effect

If a provision of the compiled law has expired or otherwise ceased to have effect in accordance with a provision of the law, details are included in the endnotes.

 

  

  

  


Contents

1............ Name of Regulations........................................................................... 1

2............ Commencement................................................................................... 1

3............ Definitions.......................................................................................... 1

4............ Eligible property.................................................................................. 1

5............ Eligible insurance contract—exclusions.............................................. 1

6............ Functions of Corporation.................................................................... 1

Schedule 1—Exclusions                                                                                           2

Endnotes                                                                                                                                      8

Endnote 1—About the endnotes                                                                              8

Endnote 2—Abbreviation key                                                                                10

Endnote 3—Legislation history                                                                             11

Endnote 4—Amendment history                                                                           12

Endnote 5—Uncommenced amendments [none]                                          13

Endnote 6—Modifications [none]                                                                         13

Endnote 7—Misdescribed amendments [none]                                             13

Endnote 8—Miscellaneous [none]                                                                        13

 


 

 

1  Name of Regulations

                   These Regulations are the Terrorism Insurance Regulations 2003.

2  Commencement

                   These Regulations commence on 1 July 2003.

3  Definitions

                   In these Regulations:

Act means the Terrorism Insurance Act 2003.

business has the same meaning as in the Trade Practices Act 1974.

4  Eligible property

                   For paragraph (c) of the definition of eligible property in section 3 of the Act, tangible property that is on, in or under the seabed is prescribed.

5  Eligible insurance contract—exclusions

                   For subsection 7 (2) of the Act, a contract of insurance described in Schedule 1 is not an eligible insurance contract.

6  Functions of Corporation

                   For paragraph 10(b) of the Act, a function of the Corporation is to:

                     (a)  assist and support the National Insurance Affordability Initiative; and

                     (b)  assist and support the National Insurance Affordability Council in performing its functions as outlined in the Council’s Terms of Reference.

Note:          When this regulation commenced, the National Insurance Affordability Initiative was administered by the Treasury portfolio.


Schedule 1Exclusions

(regulation 5)

  

               1  A contract that includes provisions of insurance, although the contract would not ordinarily be regarded as a contract of insurance.

               2  A contract of insurance that provides cover (whether or not the cover is restricted) for:

                     (a)  the destruction of, or damage to, a home building within the meaning given by regulation 7.1.12 of the Corporations Regulations 2001; or

                     (b)  the loss of, or damage to, the contents of a residential building within the meaning given by regulation 7.1.13 of the Corporations Regulations 2001; or

                     (c)  any of the following:

                              (i)  financial loss for fares for any form of transport or accommodation to be used in the course of a specified journey if the insured person does not start or complete the journey;

                             (ii)  loss or damage to personal belongings while the insured person is on a specified journey;

                            (iii)  a sickness or disease contracted, or injury sustained, by the insured person on a specified journey;

                            (iv)  loss, damage or compensation for an event affecting the insured person on a specified journey that ordinarily forms a part of insurance commonly regarded as travel insurance, including loss of cash or credit cards, legal liability, hijack, kidnap or ransom; or

                     (d)  loss or damage to property that is:

                              (i)  wholly or predominantly used for personal, domestic or household purposes by the insured, a relative of the insured or a person who resides with the insured; and

                             (ii)  ordinarily used for that purpose.

               3  A contract of insurance that provides cover (whether or not the cover is restricted) for:

                     (a)  contracting a sickness or disease or a specified sickness or disease, or sustaining an injury or a specified injury, or dying as a result of the sickness, disease or injury; or

                     (b)  the death, sickness, disease, injury or unemployment of the insured person if the amount of the liability of the insurer under the contract is worked out by reference to a liability of the insured person under a specified agreement to which the insured person is a party.

               4  A contract of insurance:

                     (a)  that provides cover to farm business, including:

                              (i)  producing crops or livestock, including produce derived from the crops or livestock; or

                             (ii)  the interests of an owner, lessor, lessee or hirer of property used to produce crops or livestock; and

                     (b)  that does not provide cover for business interruption (insurance known as increased cost of working cover provided by the farm property cover of a farm insurance (or farm pack) policy is not taken to be cover for business interruption).

               5  A contract of insurance underwritten by the Commonwealth.

            5A  A contract of insurance underwritten by the government of the Australian Capital Territory or the Northern Territory that is not a contract of insurance provided by a body owned by the government of the Territory.

               6  A contract of insurance to the extent that it provides cover to the Commonwealth.

               8  A contract of insurance to the extent that it provides cover to:

                     (a)  the Crown in right of a State, the Australian Capital Territory or the Northern Territory; or

                     (b)  a Minister of the government of a State, the Australian Capital Territory or the Northern Territory (in the capacity of a Minister); or

                     (c)  a Department of the government of a State, the Australian Capital Territory or the  Northern Territory.

               9  A contract of insurance in which a registered health benefits organisation provides cover in relation to its business as a registered organisation within the meaning of Part VI of the National Health Act 1953.

             10  A contract of professional indemnity insurance.

             11  A contract of insurance, including mortgage insurance, in which the insurer agrees to indemnify the insured against loss in relation to failure by a debtor to pay a debt due to the insured, but not against any other loss.

             12  A life policy within the meaning of section 9 of the Life Insurance Act 1995.

             13  A superannuation contract, for an individual or a group, including a superannuation policy within the meaning of the Life Insurance Act 1995.

             14  A contract of insurance entered into by the Export Finance and Insurance Corporation under the Export Finance and Insurance Corporation Act 1991.

             15  A contract of insurance commonly known as a trade credit or trade indemnity policy.

             16  A contract of insurance commonly known as a product liability insurance contract, to the extent that it does not also provide cover for public liability.

             17  A contract of insurance in which the insurer:

                     (a)  indemnifies a business undertaking against loss resulting from a breakdown of, or malfunction in, machinery (including electronic equipment) or plant of the business undertaking, including:

                              (i)  loss in relation to the repair or replacement of the machinery or plant; or

                             (ii)  any further loss resulting from the breakdown or malfunction; but

                     (b)  does not indemnify the business undertaking for any other kind of loss.

             18  A contract of insurance (whether or not the cover is restricted or extended):

                     (a)  for a motor vehicle (other than moveable machinery or equipment, used in mining or construction activities, that           would not ordinarily be registered to travel by road); and

                     (b)  for:

                              (i)  loss of, or damage to, the motor vehicle; or

                             (ii)  liability for loss of, or damage to, property caused by or resulting from impact of the motor vehicle with some other thing; or

                            (iii)  liability for compensation for the death of, or injury to, a person resulting from the use of the motor vehicle and not covered by compulsory third party insurance.

             19  A contract of marine insurance within the meaning of section 7 of the Marine Insurance Act 1909.

             20  A contract of insurance for goods (including any form of legal tender) in the ordinary course of transit, including goods that are stored temporarily in the course of the transit.

             21  A contract of insurance for pleasure craft within the meaning of subsection 9A (2) of the Insurance Contracts Act 1984.

             22  A contract of insurance entered into for a law (including a law of a State or Territory) about:

                     (a)  workers’ compensation; or

                     (b)  compensation for the death of a person, or for the injury to a person, arising out of the use of a motor vehicle, commonly known as compulsory third party insurance.

             23  A contract of aviation insurance, being:

                     (a)  a contract of insurance (whether or not the cover is limited or restricted) for loss of, damage to or liability arising in connection with aircraft; or

                     (b)  an aviation liability indemnity contract within the meaning of subregulation 31 (2) of the Insurance Contracts Regulations 1985; or

                     (c)  a contract of insurance to which Part IVA of the Civil Aviation (Carriers’ Liability) Act 1959 applies.

             24  Any contract of insurance to the extent to which it provides cover for nuclear energy risks.

             25  A contract of insurance, commonly known as salary continuance insurance, that provides the beneficiary with an income while he or she remains unable to work in his or her usual occupation.

             26  A contract of insurance (whether or not the cover is limited or restricted) for loss of, damage to or liability arising in connection with any of the following:

                     (a)  prime movers (other than prime movers, used in mining or construction activities, that would not ordinarily be registered to travel by road);

                     (b)  trailers (other than trailers, used in mining or construction activities, that would not ordinarily be registered to travel by road);

                     (c)  rail and tram rolling stock.

             27  A financial product, to which paragraph 763A (1) (b) of the Corporations Act 2001 applies, commonly known as any of the following:

                     (a)  credit wrap product;

                     (b)  residual value bond;

                     (c)  shortfall bond;

                     (d)  rental bond;

                     (e)  payment bond;

                      (f)  credit default derivative;

                     (g)  credit enhancement derivative;

                     (h)  performance guarantee.

             28  A contract of insurance that provides cover for liability of a person in his or her capacity as a director or officer of a corporation, including any related contract of insurance which provides cover for a corporation in respect of its liability to indemnify a person in his or her capacity as a director or officer of that corporation.

             29  A contract of insurance that provides cover for liability arising from employment practices.

             30  A contract of insurance that indemnifies a trustee or a trust fund in relation to a loss or liability incurred by the trustee in the course of carrying out the trustee’s functions in relation to the trust.

             31  A contract for bankers’ blanket bond insurance.

             32  A contract of insurance to the extent that it provides cover for loss arising from computer crime.

             33  A contract of insurance that provides cover only for loss arising from fraud or dishonesty.

             34  A contract of insurance that provides cover for blood stock.

             35  A contract of insurance that provides cover only for loss arising from statutory liability.

             36  A contract of insurance, commonly known as group journey cover, that is taken out by an employer for a work‑bound employee who is not covered by a workers’ compensation scheme.

             37  A contract of insurance that does not include a terrorism exclusion within the meaning given by section 8 of the Act.

             38  A contract of insurance that provides cover only for loss or liability arising from terrorism.

             39  A contract of insurance that:

                     (a)  would otherwise be an eligible insurance contract; and

                     (b)  is in effect on 1 July 2003 or comes into effect after 30 June 2003 and before 1 October 2003; and

                     (c)  has a period of insurance of longer than 12 months; and

                     (d)  is not a project‑specific contract that has a policy period for the duration of the project.

             40  A contract of insurance commonly known as:

                     (a)  home owners’ warranty insurance; or

                     (b)  builders’ warranty insurance.


Endnotes

Endnote 1—About the endnotes

The endnotes provide details of the history of this legislation and its provisions. The following endnotes are included in each compilation:

 

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Endnote 5—Uncommenced amendments

Endnote 6—Modifications

Endnote 7—Misdescribed amendments

Endnote 8—Miscellaneous

 

If there is no information under a particular endnote, the word “none” will appear in square brackets after the endnote heading.

 

Abbreviation key—Endnote 2

The abbreviation key in this endnote sets out abbreviations that may be used in the endnotes.

 

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

 

The legislation history in endnote 3 provides information about each law that has amended the compiled law. The information includes commencement information for amending laws and details of application, saving or transitional provisions that are not included in this compilation.

 

The amendment history in endnote 4 provides information about amendments at the provision level. It also includes information about any provisions that have expired or otherwise ceased to have effect in accordance with a provision of the compiled law.

 

Uncommenced amendments—Endnote 5

The effect of uncommenced amendments is not reflected in the text of the compiled law, but the text of the amendments is included in endnote 5.

Modifications—Endnote 6

If the compiled law is affected by a modification that is in force, details of the modification are included in endnote 6.

 

Misdescribed amendments—Endnote 7

An amendment is a misdescribed amendment if the effect of the amendment cannot be incorporated into the text of the compilation. Any misdescribed amendment is included in endnote 7.

 

Miscellaneous—Endnote 8

Endnote 8 includes any additional information that may be helpful for a reader of the compilation.

 

Endnote 2—Abbreviation key

 

ad = added or inserted

pres = present

am = amended

prev = previous

c = clause(s)

(prev) = previously

Ch = Chapter(s)

Pt = Part(s)

def = definition(s)

r = regulation(s)/rule(s)

Dict = Dictionary

Reg = Regulation/Regulations

disallowed = disallowed by Parliament

reloc = relocated

Div = Division(s)

renum = renumbered

exp = expired or ceased to have effect

rep = repealed

hdg = heading(s)

rs = repealed and substituted

LI = Legislative Instrument

s = section(s)

LIA = Legislative Instruments Act 2003

Sch = Schedule(s)

mod = modified/modification

Sdiv = Subdivision(s)

No = Number(s)

SLI = Select Legislative Instrument

o = order(s)

SR = Statutory Rules

Ord = Ordinance

Sub-Ch = Sub-Chapter(s)

orig = original

SubPt = Subpart(s)

par = paragraph(s)/subparagraph(s)

 

/sub-subparagraph(s)

 

 

Endnote 3—Legislation history

 

Number and year

FRLI registration
or Gazettal

Commencement

Application, saving and transitional provisions

2003 No. 162

26 June 2003

1 July 2003

 

2003 No. 244

25 Sept 2003

rr. 1–3 and Schedule 1: 25 Sept 2003
Remainder: 16 Oct 2003

2007 No. 107

27 April 2007 (see F2007L01095)

1 July 2007

193, 2013

26 July 2013 (see F2013L01441)

26 July 2013

 

Endnote 4—Amendment history

 

Provision affected

How affected

r 6........................................

ad No 193, 2013

Schedule 1............................

am. 2003 No. 244; 2007 No. 107

 

Endnote 5—Uncommenced amendments [none]

Endnote 6—Modifications [none]

Endnote 7—Misdescribed amendments [none]

Endnote 8—Miscellaneous [none]