Tasmanian Government Insurance Act 1919

Tasmanian Government Insurance Act 1919

An Act to authorize the carrying on by the State of Tasmania of all classes of insurance business, except life insurance

Be it enacted by His Excellency the Governor of Tasmania, by and with the advice and consent of the Legislative Council and House of Assembly, in Parliament assembled, as follows:

PART I - Preliminary

1.   Short title and commencement

[Section 1 Amended by 25 Geo. V No. 78 ]This Act may be cited as the Tasmanian Government Insurance Act 1919 , and shall come into operation on 16th June 1920.

2.   Interpretation

[Section 2 Amended by 25 Geo. V No. 78 ][Section 2 Amended by No. 35 of 1971, s. 2 and s. 11 and Sched. 1 ][Section 2 Amended by No. 81 of 1979, s. 3 ][Section 2 Amended by No. 65 of 1988, s. 4 ][Section 2 Amended by No. 40 of 1991, s. 11 ][Section 2 Amended by No. 42 of 1996, s. 3 and Sched. 1 ]In this Act, unless the contrary intention appears –

accident means accident resulting in loss of life or in bodily injury;

accident insurance includes the following, whether the contract be one of primary insurance or of reinsurance, and whether the premium payable is a sum certain or consists of sums uncertain or variable in time, number, or amount –

(a) insurance against accident, disease, disability, or any change of physical or mental condition;

(b) insurance or indemnity against employers' liability, whether under statutory law or common law; and

(c) generally any contract in the nature of any of the foregoing whereby the benefit under the contract accrues payable on or after the occurrence of some contingent event;

Board means the Tasmanian Government Insurance Board;

carry on means to give cover for or accept any insurance risk or business, except life insurance, or to issue or renew or to be or become liable under any insurance policy, except life insurance policies, or to adjust or settle any claim under any such policy;

Deputy General Manager means the Deputy General Manager of the Tasmanian Government Insurance Office;

fire insurance means the insurance or reinsurance against loss or damage by fire of insurable property of all kinds whether situated in this State or elsewhere, and generally the management or carrying on in respect of such property, or of any insurable interest therein, of the business of fire insurance or reinsurance in all its branches;

general insurance business means all classes of insurance business referred to in section 3 (1) other than life insurance business;

General Manager means the General Manager of the Tasmanian Government Insurance Office;

insurance includes reinsurance;

insured means the person in whose name a policy is issued or for whose benefit it enures;

marine insurance means the business of marine insurance or reinsurance in all its branches, and includes contracts of marine insurance, namely, contracts whereby the insurer undertakes to indemnify the assured, in manner and to the extent thereby agreed, against marine losses, that is to say, the losses incident to marine adventure. A contract of marine insurance may, by its express terms or by usage of trade, protect the assured against losses, other than losses in respect of human beings, on –

(a) inland waters; or

(b) any land risk –

ordinarily covered under a marine insurance policy;

permanent staff means the officers appointed by the Governor under this Act;

policy means a policy of insurance or reinsurance covering an insurance risk, including a cover note or other contract, whether oral or in writing, covering or purporting to cover or insure such risk;

reinsurance means an insurance effected with any other person of the whole or any portion of any amount covered under any policy issued by the Board or another insurer;

Tasmanian Government Insurance Account means the Tasmanian Government Insurance Account referred to in section 24 ;

vessel includes any ship, lighter, dredge, barge, boat, raft, or craft of whatever description and however navigated or propelled;

workers' compensation insurance means insurance indemnifying employers against their liability to their workers under the Workers Rehabilitation and Compensation Act 1988 .

PART II - The carrying on of insurance business by the State

3.   Tasmanian Government Insurance Office

[Section 3 Subsection (1) amended by No. 20 of 1974, s. 2 ][Section 3 Subsection (1) amended by No. 65 of 1988, s. 5 ]

(1)  [Section 3 Subsection (1) amended by No. 35 of 1971, s. 3 ]For the purpose of enabling the State to carry on accident insurance, fire insurance, marine insurance, death and permanent incapacity insurance for home purchasers, workers' compensation insurance, and every other class of insurance business, except life insurance, all of which are hereinafter referred to as insurance business, and for the purpose of doing all such things as are incidental or conducive to the carrying on of any or all classes of insurance business, there is hereby established an office to be called "the Tasmanian Government Insurance Office", and such office shall be administered and managed under the Minister by a board established under this Act to be known as the Tasmanian Government Insurance Board.

(2)  [Section 3 Subsection (2) added by No. 20 of 1974, s. 2 ]The amount payable under a death and incapacity insurance for a home purchaser entered into under this Act shall not exceed the amount required, on the death or permanent incapacity of the person insured, to discharge any mortgage on, or complete any contract for the purchase of, the home, together with any costs incidental thereto.

4.   Tasmanian Government Insurance Board

[Section 4 Substituted by No. 35 of 1971, s. 4 ][Section 4 Subsection (9) amended by No. 40 of 1991, s. 21 ]

(1)  The Tasmanian Government Insurance Board shall be a body corporate with perpetual succession and a common seal.

(2)  The Board shall consist of four persons appointed by the Governor of whom –

(a) one shall be a person who appears to the Governor experienced in insurance matters;

(b) one shall be a person who appears to the Governor experienced in financial matters;

(c) one shall be a legal practitioner; and

(d) one shall be an actuary.

(3)  Where a member of the Board is required to be appointed pursuant to either subsection (2) (a) or (2) (d) and the Governor is satisfied that it is impracticable to make the appointment in accordance with that paragraph he may, instead, appoint as a member of the Board some person whom, in the circumstances, he considers suitable.

(4)  A person appointed a member of the Board shall be so appointed for a term, not exceeding three years, specified in his instrument of appointment.

(5)  The chairman and deputy chairman of the Board shall be such members thereof as the Governor may appoint in that behalf.

(6)  [Section 4 Subsection (6) substituted by No. 29 of 1984, s. 3 and Sched. 1 ]The members of the Board are not, as such, subject to the Tasmanian State Service Act 1984 , but an employee employed in the State Service may hold office as a member of the Board in conjunction with his position in the State Service.

(7)  [Section 4 Subsection (7) substituted by No. 29 of 1984, s. 3 and Sched. 1 ]A member of the Board shall be paid such fees and allowances as the Governor may determine and as may be specified in his instrument of appointment and shall be paid such sums by reimbursement of the expenses incurred by him in the execution of his duties as the Governor may approve, but no fees or allowances shall be paid under this section to a member of the Board who is an employee, within the meaning of the Tasmanian State Service Act 1984 , except with the approval of the Head of the Agency in which the employee is employed.

(8)  [Section 4 Subsection (8) omitted by No. 29 of 1984, s. 3 and Sched. 1 ].  .  .  .  .  .  .  .  

(9)  [Section 4 Subsection (9) amended by No. 65 of 1988, s. 6 ]Any sums required to be paid under subsection (7) shall be so paid out of the Tasmanian Government Insurance Account.

5.   Vacation of office of members of the Board

[Section 5 Substituted by No. 35 of 1971, s. 4 ]

(1)  The Governor may remove any member of the Board from office if he is satisfied that that member –

(a) has become incapable of carrying out the duties of his office;

(b) has been guilty of misconduct or negligence in the carrying out of those duties, or is incompetent to carry out those duties;

(c) has obtained or attempted to obtain any special benefit for himself or his employer, or a company of which he is a member;

(d) has contravened the provisions of section 6 (5) ;

(e) without leave of the Minister, has been absent from three or more consecutive meetings of the Board;

(f) has applied to take, or takes, advantage of any law relating to bankruptcy, or has compounded, or entered into an arrangement, with his creditors; or

(g) has been convicted (whether in this State or elsewhere) of an offence of such a nature that renders it improper for him to continue to hold his office.

(2)  No person who is a member of either House of Parliament of this State or of the Commonwealth shall be appointed a member of the Board, and if a member of the Board is nominated for election for any of such Houses of Parliament he vacates his office as member of the Board.

(3)  The Governor shall not remove a member of the Board otherwise than in accordance with this section.

6.   Proceedings of the Board

[Section 6 Substituted by No. 35 of 1971, s. 4 ]

(1)  The Board shall hold such meetings as in the opinion of the chairman thereof are necessary for the efficient conduct of its business, and a meeting of the Board shall be held at any time if requested by any two members thereof.

(2)  The chairman of the Board or, if he is absent or there is no chairman, the deputy chairman, shall preside at meetings of the Board.

(3)  Three members of the Board constitute a quorum at any meeting of the Board.

(4)  The chairman or other person presiding at a meeting of the Board has a deliberative vote only, and, in the event of an equality of votes on any matter before a meeting of the Board, that matter stands adjourned to the next meeting of the Board; but, where that matter is so adjourned and the voting thereon at the meeting to which it is adjourned (being a meeting at which all the members of the Board are present) is again equal, the chairman of the Board may exercise a second or casting vote.

(5)  A member of the Board who is interested in any way, whether directly or indirectly, in any contract, agreement, or transaction entered into, or proposed to be entered into, by the Board shall disclose the nature of his interest at a meeting of the Board and the disclosure shall be recorded in the minutes of the meeting.

(6)  The secretary of the Board has the custody of the common seal of the Board, and every sealing with that seal shall be authenticated by the signatures of the chairman and secretary of the Board or by the signatures of any two members of the Board and the secretary of the Board.

(7)  The Board shall cause minutes to be kept of each of its meetings.

(8)  Subject to this Act the Board may regulate its own proceedings.

7.   General Manager and other officers

[Section 7 Substituted by No. 35 of 1971, s. 4 ][Section 7 Subsection (5) amended by No. 40 of 1991, s. 21 ]

(1)  The Governor, on the recommendation of the Board, may appoint –

(a) a General Manager of the Tasmanian Government Insurance Office;

(b) a Deputy General Manager of the Tasmanian Government Insurance Office; and

(c) a secretary of the Board –

and such other officers as appear to the Governor to be required for the business of the Tasmanian Government Insurance Office.

(2)  The General Manager is the chief executive officer of the Board and is responsible to the Board for the administration and management of the Tasmanian Government Insurance Office in accordance with the directions given to him by the Board.

(3)  [Section 7 Subsection (3) amended by No. 29 of 1984, s. 3 and Sched. 1 ]The Tasmanian State Service Act 1984 does not apply to the General Manager, the Deputy General Manager, the secretary of the Board, or the other officers appointed under this section.

(4)  The General Manager, the Deputy General Manager, and the secretary of the Board shall be paid such salary and allowances, and the other officers appointed under this section shall be paid such salary, commission, or other remuneration as the Governor, on the recommendation of the Board, determines.

(5)  [Section 7 Subsection (5) amended by No. 65 of 1988, s. 7 ]Any salary, allowances, commission, or other remuneration paid under this section in respect of general insurance business shall be paid out of the Tasmanian Government Insurance Account.

(5A)  [Section 7 Subsection (5A) omitted by No. 40 of 1991, s. 12 ].  .  .  .  .  .  .  .  

(6)  [Section 7 Subsection (6) substituted by No. 29 of 1984, s. 3 and Sched. 1 ]If an employee, within the meaning of the Tasmanian State Service Act 1984 , is appointed to an office under this section, he is entitled to retain all his existing and accruing rights as if his service in that office were a continuation of his service as an employee employed in the State Service, and where a person ceases to hold office under this section, his service in that office shall be regarded as service as an employee employed in the State Service for the purposes of determining his rights as an employee, within the meaning of that Act.

7A.   Protection for members of Board, &c.

[Section 7A Inserted by No. 89 of 1987, s. 4 ]

(1)  A member of the Board or an officer appointed under section 7 shall not incur any personal liability in respect of any act or thing done, or omitted to be done, in good faith in the administration or execution, or purported administration or execution, of this Act.

(2)  Nothing in subsection (1) precludes the Board from being subject to any action, liability, claim, or demand to which the Board is subject.

8.   Delegation of functions, &c.

[Section 8 Substituted by No. 35 of 1971, s. 4 ]

(1)  The Board may delegate to the General Manager the exercise of any of its functions under this Act, except the power conferred on it by this subsection.

(2)  A delegation under this section may be revoked or varied at any time by the Board, and no such delegation prevents the exercise of any function by the Board.

(3)  A delegation under this section may be made subject to conditions and restrictions, and may be made generally or in relation to any particular case or class of cases.

(4)  Any act done by the General Manager in the exercise of any functions delegated to him under this section has the like effect as if it were done by the Board.

(5)  Subject to any directions given by the Board, the Deputy General Manager may exercise any of the functions of the General Manager (whether those functions are exercised by the General Manager by virtue of a delegation under this section or otherwise) and any act done by the Deputy General Manager in the exercise of those functions has the like effect as if it were done by the General Manager.

9.   Disabilities and disqualifications of General Manager and Deputy General Manager

[Section 9 Amended by No. 15 of 1986, s. 4 ]Except where representing the interests of the Tasmanian Government Insurance Office on the direction of the Board or except as required or authorized by another enactment, the General Manager or Deputy General Manager shall not act as a director or auditor, or in any other capacity take part in the management of any bank, joint stock company, or other financial institution, or of any trade or business, or acquire or hold, directly or indirectly, any shares in any insurance company, and in any such case shall be disqualified from holding the office of General Manager or Deputy General Manager, as the case may be.

10.   General Manager and Deputy General Manager not to be personally interested in certain contracts, &c.

[Section 10 Amended by 14 Geo. V No. 69, s. 3 and Sched. 2 ][Section 10 Amended by No. 15 of 1986, s. 5 ]Except where, in the course of doing anything mentioned in section 9 , he is representing the interests of the Tasmanian Government Insurance Office on the direction of the Board or except as required or authorized by another enactment, a General Manager or Deputy General Manager who –

(a) is in any wise concerned or interested in any bargain or contract made by or on behalf of the Tasmanian Government Insurance Office or the Crown; or

(b) in any wise participates, or claims to be entitled to participate in the profit thereof, or in any benefit of emolument arising from the same –

shall thereby vacate his office as General Manager or Deputy General Manager.

11.   Members and officers bound to secrecy

[Section 11 Subsection (2) amended by No. 35 of 1988, s. 4 ]

(1)  [Section 11 Subsection (1) amended by No. 35 of 1971, s. 5 ]Each member of the Board, the General Manager, Deputy General Manager, secretary of the Board, and every member of the permanent staff shall be bound to secrecy by statutory declaration in the prescribed form.

(2)  [Section 11 Subsection (2) amended by No. 55 of 1965, s. 5 ]Every person who makes such statutory declaration and wilfully acts in contravention of the true intent thereof shall be guilty of an offence against this Act.

Penalty:  5 penalty units or three months' imprisonment.

12.   Referees: Appointment and powers

[Section 12 Amended by No. 36 of 1958, s. 4 and Sched. 3 ]

(1)  The Governor may appoint such and so many persons as he deems necessary to act as referees for the purposes of this Act.

(2)  A police magistrate, or any other fit and proper person having in the opinion of the Governor the necessary qualification, may be appointed to be and act as a referee under this Act.

(3)  Every such referee, when sitting for the purposes of this Act, shall have all the powers of and be deemed to be a person to whom the Governor has, under the provisions of Division 2 of Part II of the Evidence Act 1910 , issued a commission to make an inquiry, and the said provisions shall, with the necessary alterations, be deemed to be incorporated with this Act.

13.   Power to establish branches and agencies and appoint agents

[Section 13 Amended by No. 35 of 1971, s. 11 and Sched. 1 ][Section 13 Amended by No. 99 of 1982, s. 3 and Sched. 2, Pt. II ]The Minister, on the recommendation of the Board, may –

(a) establish branches of the Tasmanian Government Insurance Office, or of any department thereof, at any places in this State, and establish agencies of the Tasmanian Government Insurance Office at any place within or outside this State, and may close any branch or agency; and

(b) appoint such agents and valuers (not being members of the permanent staff) on such terms as to salary, commission, or other remuneration as he thinks fit.

14.   Power to associate with insurance companies for reinsurance

[Section 14 Amended by 25 Geo. V No. 78 ][Section 14 Amended by No. 36 of 1958, s. 4 and Sched. 3 ][Section 14 Amended by No. 35 of 1971, s. 11 and Sched. 1 ]

(1)  The Tasmanian Government Insurance Office may, for the purpose of reinsurance, have associated with it any insurance company doing business in or out of this State.

(2)  Notwithstanding anything in subsection (1) , the Board shall not, without the consent of the Minister, enter into any agreement with any insurance company fixing the premiums payable.

15.   Board to conduct business of the office

[Section 15 Amended by No. 35 of 1971, s. 11 and Sched. 1 ]

(1)  Subject to the provisions of this Act, the business of the Tasmanian Government Insurance Office and all Tasmanian Government insurance business shall be conducted by the Board on behalf of the Crown, and the Board may enter into, perform, and enforce any contracts in relation to any insurance business or risk which may be lawfully entered into by or with any person or company, and generally to do whatever it deems necessary in connection with or incident to business.

(2)  [Section 15 Subsection (2) amended by No. 65 of 1988, s. 8 ]The Board may refuse to enter into an insurance contract other than a contract relating to workers' compensation insurance, with any person in any case where it is of opinion that there are sufficient grounds for so refusing.

(3)  [Section 15 Subsection (3) omitted by No. 40 of 1991, s. 13 ].  .  .  .  .  .  .  .  

16.   How contracts may be entered into

[Section 16 Amended by No. 36 of 1958, s. 4 and Sched. 3 ][Section 16 Amended by No. 35 of 1971, s. 11 and Sched. 1 ]

(1)  The Board may enter into insurance contracts either at the Tasmanian Government Insurance Office in Hobart, or at branch offices or agencies throughout this State, and either by itself or through the medium of such officers or agents as it appoints for that purpose.

(2)  For the purpose of effecting with persons or companies out of this State the reinsurance of risks under this Act, the Board may enter into or make arrangements for contracts of such reinsurances through the medium of attorneys or agents out of this State, to be appointed by it with such powers as it thinks fit.

17.   Mode of execution of policies

[Section 17 Substituted by No. 35 of 1971, s. 11 and Sched. 1 ]Policies, and any endorsements thereon, incident to the business of the Tasmanian Government Insurance Office, are not required to be executed under seal, and any such document not required to be under seal may for the purposes of the execution thereof be signed in the name and on behalf of the Board by the General Manager or by some other person authorized by it in that behalf.

18.   

[Section 18 Repealed by No. 35 of 1971, s. 11 and Sched. 1 ].  .  .  .  .  .  .  .  

19.   Proceedings in respect of fire losses

[Section 19 Substituted by No. 35 of 1971, s. 11 and Sched. 1 ]No action lies against the Board in respect of any fire loss unless it is commenced within 12 months after the loss occurred.

20.   Local authorities and Government departments to furnish information requested by Board

[Section 20 Amended by 25 Geo. V No. 78 ][Section 20 Amended by No. 55 of 1965, s. 5 ][Section 20 Amended by No. 35 of 1971, s. 11 and Sched. 1 ][Section 20 Amended by No. 29 of 1984, s. 3 and Sched. 1 ][Section 20 Amended by No. 35 of 1988, s. 5 ][Section 20 Amended by No. 43 of 1991, s. 5 and Sched. 1 ]For the purpose of minimising as far as possible the risk of insurance under this Act, the following provisions shall apply:

(a) It shall be the duty of the city or municipal council of every city or municipality and the duty of every other local governing body, and also of every Head of an Agency, within the meaning of the Tasmanian State Service Act 1984 , and every employee, within the meaning of that Act, and every statutory authority, not being an Agency, within the meaning of that Act, and every officer of such an authority; at all times to furnish to the Board all such information and reports as it requests, and such council, body, Agency, statutory authority, or person can supply, concerning any fact or circumstance in any way affecting the risk of insurance;

(b) Any person authorized by the Board in that behalf may at all reasonable times enter on any building, vessel, or premises –

(i) insured or proposed to be insured under this Act; or

(ii) wherein or whereon are or are supposed to be any goods, articles, or things insured or proposed to be so insured under this Act –

and may inspect any such building, vessel, premises, goods, articles, or things; and

(c) Every person who in any way hinders such entry or inspection, or refuses to give any information in his power relating to such building, vessel, premises, goods, articles, or things, or knowingly gives any false information, is guilty of an offence against this Act.

Penalty:  Fine not exceeding 10 penalty units.

21.   Certain provisions as to fire insurance policies

[Section 21 Amended by 25 Geo. V No. 78 ][Section 21 Amended by No. 35 of 1971, s. 11 and Sched. 1 ]With respect to every policy of fire insurance issued by the Board, the following provisions shall apply:

(a) In the case of builders' risks or other policies for short specified periods of less than a year the premium shall be payable in advance;

(b) In every other case the premium shall be payable annually in advance during the continuance of the policy; and

(c) The policy may, in the absolute discretion of the Board, be cancelled by it at any time, and in such case it shall refund to the policy holder any sum paid in respect of premiums for the period subsequent to such cancellation.

22.   Policies guaranteed by the State

(1)  [Section 22 Subsection (1) amended by No. 35 of 1971, s. 11 and Sched. 1 ]Every policy issued by the Board under this Act shall be issued on behalf of, and is hereby guaranteed by, the Government of Tasmania.

(2)  [Section 22 Subsection (2) added by 25 Geo. V No. 78 ]All policies of marine insurance under this Act shall comply with, and be subject to, the provisions of the Marine Insurance Act 1909 of the Commonwealth.

23.   

[Section 23 Repealed by No. 35 of 1971, s. 6 ].  .  .  .  .  .  .  .  

24.   Moneys to be paid to Tasmanian Government Insurance Account

[Section 24 Amended by No. 35 of 1971, s. 11 and Sched. 1 ][Section 24 Amended by No. 65 of 1988, s. 9 ][Section 24 Amended by No. 40 of 1991, s. 21 ]All moneys payable to or received by the Board or any other person on account of the Tasmanian Government Insurance Office in respect of Tasmanian Government general insurance business shall be paid into a bank to the credit of an account, called "the Tasmanian Government Insurance Account", which shall be operated on only by cheque signed by such persons as may be authorized by the Board.

24A.   

[Section 24A Repealed by No. 40 of 1991, s. 14 ].  .  .  .  .  .  .  .  

25.   Moneys payable out of Tasmanian Government Insurance Account

[Section 25 Amended by 25 Geo. V No. 78 ][Section 25 Amended by No. 35 of 1971, s. 11 and Sched. 1 ][Section 25 Amended by No. 65 of 1988, s. 11 ][Section 25 Amended by No. 40 of 1991, s. 21 ]There shall be payable out of the Tasmanian Government Insurance Account, and, except where otherwise specially provided, without further appropriation than this Act –

(a) all salaries, allowances, remuneration, expenses, losses, reinsurance premiums, rents, and outgoings expended or incurred in the management of the Tasmanian Government Insurance Office in respect of its general insurance business and the conduct of that business; and

(b) all other moneys payable for the purposes of this Act in respect of its general insurance business.

25A.   

[Section 25A Repealed by No. 40 of 1991, s. 14 ].  .  .  .  .  .  .  .  

26.   All moneys to be property of Crown

[Section 26 Amended by 25 Geo. V No. 78 ][Section 26 Amended by No. 35 of 1971, s. 11 and Sched. 1 ][Section 26 Amended by No. 65 of 1988, s. 13 ][Section 26 Amended by No. 40 of 1991, s. 15 ]All moneys in the Tasmanian Government Insurance Account, or payable into that account by any person, and also all debts and other moneys owing to the Board by any person, whether on account of premiums, loans on mortgage, rents, or otherwise, and whether the same are accrued due or not, are hereby declared to be the property of the Crown and recoverable accordingly by the Board in like manner as money due to the Crown is recoverable.

27.   

[Section 27 Repealed by No. 35 of 1971, s. 7 ].  .  .  .  .  .  .  .  

28.   Investment of surplus moneys

[Section 28 Amended by 25 Geo. V No. 78 ][Section 28 Subsection (1) amended by No. 40 of 1991, s. 16 and s. 21 ][Section 28 Amended by No. 35 of 1971, s. 11 and Sched. 1 ][Section 28 Amended by No. 65 of 1988, s. 14 ][Section 28 Amended by No. 40 of 1991, s. 21 ]

(1)  [Section 28 Subsection (1) amended by No. 35 of 1971, s. 11 and Sched. 1 ]All moneys in the Tasmanian Government Insurance Account which, in the opinion of the Board, are not required for the purposes of that account, may be invested in such manner and as the Treasurer approves.

(1A)  [Section 28 Subsection (1A) omitted by No. 40 of 1991, s. 16 ].  .  .  .  .  .  .  .  

(2)  [Section 28 Subsection (2) inserted by No. 36 of 1958, s. 4 and Sched. 3 ]For the purposes of the Account referred to in subsection (1) , the securities referred to in that subsection may be realized, hypothecated, or otherwise disposed of as the Board thinks fit.

(2A)  [Section 28 Subsection (2A) omitted by No. 40 of 1991, s. 16 ].  .  .  .  .  .  .  .  

(3)  [Section 28 Subsection (3) added by No. 15 of 1986, s. 6 ]Without limiting the powers conferred by this section, any part of the moneys in the Tasmanian Government Insurance Account which, in the opinion of the Board, is not required for the purposes of that account may be invested –

(a) in a unit trust; or

(b) in any arrangement, undertaking, or venture, being an arrangement or undertaking or a venture in which the Board and any other person or persons make a joint investment and that investment by the Board is made in a manner in which the Board is authorized by this subsection or the regulations to make an investment on its own account.

(4)  [Section 28 Subsection (4) added by No. 15 of 1986, s. 6 ]For the purposes of subsection (3) , the Board shall be deemed to invest in a unit trust if it –

(a) invests in units in a unit trust;

(b) underwrites, co-underwrites, or sub-underwrites the issue of units in a unit trust; or

(c) makes a loan to the trustee of a unit trust on the security of debentures in the unit trust or on such other security as may be the security for any investment that the Board is authorized by subsection (3) or the regulations to make on its own account.

(5)  [Section 28 Subsection (5) added by No. 15 of 1986, s. 6 ]For the purposes of making a joint investment under subsection (3) (b) , the Board may –

(a) enter into, form, or promote a partnership, company with a paid-up capital of not less than $2, unit trust, or other arrangement, undertaking, or venture;

(b) subscribe for or otherwise acquire, and dispose of, any interest, share, or unit in, or any debt security of, the joint investment;

(c) create a charge on the assets, whether tangible or not, of the joint investment or any other assets;

(d) provide any loan, advance, or debt facility to, or participate in a debt arrangement with, the other person or persons participating in the joint investment or some other person or persons, whether that loan or advance or the debt to which that facility relates is secured or not; and

(e) enter into such arrangements, undertakings, or ventures with such person or persons as are necessary to provide a security for the investment.

(6)  [Section 28 Subsection (6) added by No. 15 of 1986, s. 6 ]Subject to subsection (7) , for the purposes of the making by the Board of a joint investment under subsection (3) (b) , any member or officer of the Board may –

(a) be a director or other officer of a company;

(b) exercise all the powers of such an officer; and

(c) hold shares in a company in trust for the Board.

(7)  [Section 28 Subsection (7) added by No. 15 of 1986, s. 6 ]The powers specified in subsection (6) may be exercised by the General Manager or the Deputy General Manager only where he represents the interests of the Tasmanian Government Insurance Office on the direction of the Board.

(8)  [Section 28 Subsection (8) added by No. 15 of 1986, s. 6 ]In this section, unit, in relation to a unit trust, includes ordinary unit, preference unit, bonus unit, right to subscribe for a unit, option to subscribe for a unit, and any other right or option to acquire a unit.

29.   Reserves

[Section 29 Substituted by No. 40 of 1991, s. 17 ]

(1)  The Board may establish and maintain reserves.

(2)  Any reserves which the Board held immediately before the commencement of the State Authorities Financial Management (Consequential Amendments) Act 1991 form part of the reserves established under this section.

30.   Operating profit or loss

[Section 30 Substituted by No. 40 of 1991, s. 17 ]

(1)  In this section –

loss means the loss or deficit shown on the operating statement of the Board in respect of a financial year after –

(a) any abnormal or extraordinary items have been taken into account; and

(b) provision has been made for any taxation-equivalent payable under Part 5 of the State Authorities Financial Management Act 1990 ;

operating statement means –

(a) the profit and loss account; or

(b) the statement of income and expenditure; or

(c) the statement of activity;

profit means the profit or surplus shown on the operating statement of the Board in respect of a financial year after –

(a) any abnormal or extraordinary items have been taken into account; and

(b) provision has been made for any taxation-equivalent payable under Part 5 of the State Authorities Financial Management Act 1990 .

(2)  After any dividend payable under Part 6 of the State Authorities Financial Management Act 1990 in respect of any financial year has been provided for, any remaining profit may be retained –

(a) in a reserve established under section 29 ; or

(b) in an unappropriated profit account; or

(c) partly in such a reserve and partly in such an account.

(3)  Where the Board incurs a loss, it shall advise the Minister and the Treasurer, in writing, of –

(a) the amount of the loss; and

(b) the reasons for the loss; and

(c) the consequences of the loss; and

(d) whether the Board is requesting financial assistance from the Treasurer.

(4)  In determining the consequences of a loss for the purposes of subsection (3) (c) , the Board shall consider –

(a) the impact of the loss on the liquidity position of the Board; and

(b) the availability of reserves to meet the loss; and

(c) the impact of the loss on the viability of the Board.

(5)  On the request of the Board and with the approval of the Minister, the Treasurer may pay to the Board out of money provided by Parliament for the purpose an amount which is not more than that part of any loss which is not to be met by the Board from its reserves or in any other manner.

(6)  In determining whether to make a payment under subsection (5) , the Treasurer shall consider –

(a) the advice referred to in subsection (3) ; and

(b) any other matter the Treasurer considers relevant.

(7)  An amount paid to the Board under subsection (5) is a debt repayable by the Board into the Consolidated Fund on the conditions and in the manner determined by the Treasurer.

31.   

[Section 31 Repealed by No. 40 of 1991, s. 18 ].  .  .  .  .  .  .  .  

PART III - General

31A.   Power of Board to build premises for transacting business

[Section 31A Inserted by No. 28 of 1952, s. 2 ][Section 31A Subsection (1) amended by No. 65 of 1988, s. 16 ][Section 31A Subsection (1) amended by No. 40 of 1991, s. 19 ][Section 31A Subsection (4) amended by No. 65 of 1988, s. 16 ][Section 31A Subsection (4) amended by No. 40 of 1991, s. 21 ]

(1)  [Section 31A Subsection (1) amended by No. 35 of 1971, s. 11 and Sched. 1 ]The Board, with the approval of the Minister, may out of moneys invested under section 28 –

(a) purchase any building; or

(b) purchase any land and build thereon offices –

for the purposes of this Act, and may purchase any furniture or fittings which it may consider necessary for use therein.

(2)  Any building purchased or built in pursuance of this section may contain office accommodation and other accommodation in excess of the requirements of the Tasmanian Government Insurance Office.

(3)  Any such excess accommodation may be let at rents approved by the Minister.

(4)  [Section 31A Subsection (4) amended by No. 35 of 1971, s. 11 and Sched. 1 ]Any rent arising from any such letting shall be paid into the Tasmanian Government Insurance Account and may be recovered either under section 26 or by the Board in any other way available to landlords.

31B.   Power to borrow money

[Section 31B Inserted by No. 35 of 1988, s. 6 ]The Board may borrow money for the purposes of this Act or for the purposes of investment and may enter into such arrangements as are necessary to provide a security for any such borrowing.

32.   Power of Board to rent premises for transacting business, &c.

[Section 32 Amended by 25 Geo. V No. 78 ][Section 32 Amended by No. 35 of 1971, s. 11 and Sched. 1 ]The Board, with the approval of the Minister, may –

(a) take any premises on lease; and

(b) purchase any furniture, fixtures, or fittings deemed necessary by the Board for the premises leased under this section.

33.   Certain payments appropriated

[Section 33 Amended by No. 28 of 1952, s. 3 ][Section 33 Amended by No. 35 of 1971, s. 11 and Sched. 1 ]All payments of land tax or income tax whether under the laws of the State or the Commonwealth, and of rates and taxes from time to time due or payable on or in respect of real property vested in the Crown or the Board for the purposes of the Tasmanian Government Insurance Office, shall be payable out of the proper funds of the Tasmanian Government Insurance Office under the authority of this Act, without any further or other appropriation by Parliament.

34.   Taxation laws to apply to Board

[Section 34 Amended by No. 35 of 1971, s. 11 and Sched. 1 ]The provisions of any Act now or hereafter in force affecting insurance companies and rendering them liable to assessment or State taxation, stamp duty, fire brigade charges, or State taxation, shall extend and apply to the Board and the business conducted by it by virtue of this Act.

35.   Settlement of claims

[Section 35 Amended by No. 36 of 1958, s. 4 and Sched. 3 ][Section 35 Amended by No. 35 of 1971, s. 11 and Sched. 1 ]

(1)  Claims under policies issued by the Board shall be allowed or rejected in the first instance by the Board, but the Board on receipt of any such claim may, or any person claiming thereunder who objects to the ruling thereon of the Board may, by notice in writing, require the matter to be heard and determined by a referee, and the application shall, in such case, be heard and determined by such referee in accordance with the regulations. The Board may in any case, if it thinks fit, before any dispute is submitted to a referee, require a deposit of money as security for the cost of the reference, to such amount and upon such terms as may be prescribed.

(2)  Subject to the regulations, the cost of the proceedings shall be in the discretion of the referee.

(3)  Either party to the proceedings before such referee may appeal from his decision on any point of law or question of fact in the same manner as in the case of an appeal from an order or conviction by justices.

36.   

[Section 36 Repealed by 25 Geo. V No. 78 ].  .  .  .  .  .  .  .  

37.   Regulations

[Section 37 Amended by 25 Geo. V No. 78 ][Section 37 Amended by No. 36 of 1958, s. 4 and Sched. 3 ][Section 37 Amended by No. 35 of 1971, s. 10 and s. 11 and Sched. 1 ][Section 37 Amended by No. 65 of 1988, s. 17 ][Section 37 Amended by No. 40 of 1991, s. 20 ]The Governor may make regulations for –

(a) the conduct of Tasmanian Government insurance business;

(b) prescribing the terms and conditions of service and the functions and duties of all persons employed under this Act, and the forms, amount, and nature of the securities to be furnished by them;

(c) .  .  .  .  .  .  .  .  

(ca) .  .  .  .  .  .  .  .  

(d) .  .  .  .  .  .  .  .  

(e) .  .  .  .  .  .  .  .  

(f) fixing the maximum amount to be invested on mortgage from any one borrower, and the maximum amount to be advanced on any one security;

(g) .  .  .  .  .  .  .  .  

(h) determining the principle and method to be adopted in valuing risks, and in accepting, rejecting, or cancelling such risks;

(i) classifying buildings and other risks for the purposes of insurance or reinsurance;

(j) defining the conditions subject to which insurance or reinsurance may be effected;

(k) prescribing the events on the happening whereof insurances or reinsurances shall be void;

(l) fixing the maximum risk to be taken, and the minimum margin of value to be required;

(m) prescribing the forms of policies and claims, proofs of loss and all other documents issued under this Act or used in connection with the business of the Tasmanian Government Insurance Office;

(n) .  .  .  .  .  .  .  .  

(o) prescribing whatever is deemed expedient with respect to the mode of granting insurance under this Act in the case of builders' risks and other insurances for short specified periods, and the terms and conditions thereof;

(p) protecting the interests of mortgagees, assignees, and others in respect of property insured under this Act; and

(q) determining the mode in which shall be done anything by this Act expressed to be prescribed –

and generally for the purposes of this Act.