Northern Territory Explanatory Statements

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TERRITORY INSURANCE OFFICE AND OTHER LEGISLATION AMENDMENT BILL 2010

This Act may be cited as the Territory Insurance Office and Other Legislation Amendment Act 2010.

Clause 2. Commencement

This Act commences on the day on which the Administrator’s assent to this Act is declared, except for Part 4 which commences on 1 January 2011.

This Part amends the Territory Insurance Office Act.

Clause 4. Amendment of section 3 (Interpretation)

This section inserts new definitions for associate, board, chairperson, deputy chairperson and financial service and changes references to be non gender specific.

Clause 5. New sections 3A and 3B

A new section (3A) defines the meaning of associate, which calls up the corresponding definition contained in the Corporations Act.

A new section (3B) applies Part IIAA of the Criminal Code. This part states the general principles of criminal responsibility, establishes general defences, and deals with burden of proof. It also defines, or elaborates on, certain concepts commonly used in the creation of offences.

Clause 6. Amendment of section 4 (Establishment of the Office)

This section is amended to call up the parallel provisions of the Government Owned Corporations Act.

Clause 7. Amendment of section 6 (Powers of the Office)

This section has been revised to remove references to the Public Trustee Act and the Ministerial approval requirement for undertaking investment.

Clause 8. Replacement of section 7

This section has been revised to establish public benefit as the guiding principle for Ministerial direction and to explicitly require TIO Board consultation prior to a direction being made.

Clause 9. Replacement of sections 9 to 11

Section 9 has been amended to identify the TIO Board as a Board of directors and define the role of the Board by calling up the corresponding provision of the Government Owned Corporations Act.

Section 10 has been amended to reduce the minimum number of Board members from 6 to 3, and to remove the requirement to appoint a MAC member to the TIO Board.

Section 11 has been amended to remove all reference to the Public Sector Employment and Management Act in regards to appointment of the chief executive officer.

Clause 10. Replacement of sections 14 and 15

Section 14 has been amended to remove all reference to the Public Sector Employment and Management Act in regards to the chief executive officer.

Section 15 has been amended to call up the corresponding provision of the Government Owned Corporations Act so that the Minister can dismiss a member if they commit an offence that is punishable by imprisonment of 12 months or more or the member has been disqualified for managing a corporation under the Corporations Act 2001.

Clause 11. Replacement of section 17

This section has been simplified by calling up the disclosure requirements of the Government Owned Corporations Act, and amended such that the disclosure requirements do not apply to the obtaining, negotiating or renewing of a directors and officers insurance policy.

This section is amended to reduce the custodial penalty for not declaring an interest in a contract or a possible conflict that may arise from the member’s duties or interests from a maximum of 2 years to a maximum of 6 months imprisonment, consistent with the Corporations Act 2001. The fine penalty of 50 penalty units has been determined having regard to the conversion principle outlined in s38DA of the Interpretations Act.

Clause 12. Amendment of section 17A (General duty to make disclosure)

This section is amended to reduce the custodial penalty for not disclosing a possible conflict that may arise from the member’s duties or interests from 2 years to 6 months imprisonment, consistent with the Corporations Act 2001. The conversion principle outlined in s38DA of the Interpretations Act has been applied in determining the alternative or additional penalty of a fine of up to 50 penalty units.

Clause 13. Amendment of section 17B (Register of members interests, &c.)

This section is amended to include the Board maintaining a register of members’ interests such as contracts or proposed contracts consistent with the Government Owned Corporations Act. The Board must enter the particulars of the disclosure into the register within 3 days.

Clause 14. Amendment of section 17C (Loans to members)

This section is amended to reduce the custodial penalty for providing a loan to a member without Board approval from 2 years to 6 months imprisonment. The conversion principle outlined in s38DA of the Interpretations Act has been applied in determining the alternative or additional penalty of a fine of up to 50 penalty units.

Clause 15. Replacement of section 18

This section is amended to remove the requirement that states the interval between meetings shall not exceed 2 months. It is also expanded to require that minutes of the meeting are to be signed and dated by the Chair within a reasonable time after the meeting.

Clause 16. Amendment of section 19 (Chief Executive Officer)

This section is amended to allow the chief executive office to delegate any of his/her powers and functions to any employee of the Office.

Clause 17. Replacement of sections 19A to 21

Sections 19A to 21 are repealed and replaced with a new section 20 which provides for the appointment of an acting chief executive officer. The appointment may only be made after consultation with the Minister.

New section 21 allows the Board to delegate any of its powers and functions to a director of the Board, a committee of the Board, the Chief Executive Officer, or an employee of the Office.

Clause 18. Amendment of section 22 (Moneys of Office)

This section is expanded to include Trust Distribution as a separate item. This income source is distributions from listed trusts and is a substantial income source which is listed separately in the Office’s financial statements.

Clause 19. Replacement of sections 24 and 25

Section 24 is repealed as it has been superseded by the prudential standard set for TIO.

Section 25 is replaced with the parallel provision of the Corporations Act.

Clause 20. Replacement of section 26

Section 26 is replaced with two separate sections (26 and 26A) allowing for the Minister to direct payment of monies from the MAC Fund to be made to CHA in relation to promoting road safety and the payment of monies from the Office to CHA. Monies paid from the Office to CHA are primarily dividends and the Minister must table a copy of the direction in the Legislative Assembly within 6 sitting days after giving it.

Clause 21. Amendment of section 27 (Audit and annual report)

This section is amended to call up disclosure requirements of the Corporations Act 2001, and reduces the lodgement period of the annual report from 6 months after the end of the financial year to 4 months, or such other period as the Minister determines.

Clause 22. Amendment of section 32 (Terms of contract and execution of documents)

This section is amended to call up section 52 and 53 of the Government Owned Corporations Act detailing assumptions that a person is entitled to make when dealing with the Office.

Clause 23. Amendment of section 33 (Provision of information and records to Minister)

This section is amended to require the Minister to maintain confidentiality with matters where the Board owes a duty of confidence, except in the performance of ministerial functions and duties.

Clause 24. Replacement of section 34

This section is simplified to state that the Administration may make regulations under this Act about procedures for preparation, amendment and approval of a statement of corporate intent.

Clause 25. Further amendments

Schedule 1 contains further minor amendments of the TIO Act.

Clause 26. Act amended

This Division amends the Motor Accidents (Compensation) Act.

Clause 27. Amendment of section 4 (Interpretation)

This section amends the definition of designated person and nursing care, and includes new definitions for claim, claimant, nurse, original decision and review decision.

Clause 28. New section 4E

A new section (4E) applies Part IIAA of the Criminal Code. This part states the general principles of criminal responsibility, establishes general defences, and deals with burden of proof. It also defines, or elaborates on, certain concepts commonly used in the creation of offences.

Clause 29. Replacement of section 27

Repeals section 27 to remove the role of the Board from the appeals process. This section is replaced with new sections 26 (Definitions) and 27 (Designated Person).

Clause 30. New division 2 (Review of Claims)

New subsections 28A (Review by designated person), 28B (Conducting review), 28C (Decision on review) are inserted. These new sections outline the revised appeals process, where a claimant may appeal a decision to the Designated Person.

Clause 31. Replacement of section 29 (Appeals to the Tribunal)

Repeals section 29. This section is replaced with new Division 3 (Referral of claims to Tribunal). New subsections 28D (Referral to Tribunal – designated person’s initiative), 28E (Referral to Tribunal – claimant’s request) and 28F (Hearing of referral) are inserted. These new sections outline the process for appealing to the Tribunal if the claimant is still aggrieved by the review decision, or the Designated Person fails to make a review decision.

Clause 32. Amendment of section 29A (Rules and procedure of Tribunal)

This section is amended to clarify that the rules may provide for the approval of forms for carrying out the Tribunals functions.

Clause 33. Amendment of section 30A (Contempt of Tribunal)

This section includes minor amendments of a grammatical nature.

Clause 34. New section 30B

Inserts a new section 30B (Operation and implementation of decision pending review or referral) to specify that an appeal does not affect the operation or implementation of the original or review decision (as applicable) unless so directed by the Designated Person or Tribunal.

Clause 35. Replacement of section 32

This section is simplified to state that the Office is not subject to the direction of anyone other than the Minister.

Clause 36. Replacement of section 36

This section is simplified to state that the Office may delegate any of the Office’s powers and functions under this Act to the Designated Person or another employee of the Office.

Clause 37. Replacement of section 42

This section is simplified to state that the Administrator may make regulations under this Act.

Clause 38. New Part 9

This section is linked to the amendments in schedule 2 that change ‘Board’ to ‘Office’ and is intended to address the issue of things done by the Office under the Act when they should have been done by the Board.

Clause 39. Further amendments

Schedule 2 contains further amendments to the Motor Accidents (Compensation) Act.

Division 2 Motor Accidents (Compensation) Appeal Tribunal Rules

Clause 40. Rules amended

This Division amends the Motor Accidents (Compensation) Appeal Tribunal Rules.

Clause 41. Replacement of rule 3

Repeals rule 3. This Rule is substituted with a new rule defining Master, party, reference and Registrar.

Clause 42. Amendment of rule 4 (Procedural)

This rule is amended to specify the information required to be included in a register by the Registrar.

Clause 43. Amendment of rule 5 (Institution of reference to Tribunal)

This rule is amended to require notice to be given in the approved form.

Clause 44. Amendment of rule 6 (Answer)

This rule is amended to require an answer to be given in the approved form.

Clause 45. Repeal of rule 10 (Services of notice)

This rule has been removed to reflect the removal of the Board from the appeals process. Services of notice are addressed in the Interpretation Act.

Clause 46. Replacement of rule 16

Repeals rule 16 as it relates to transitional arrangements. New rule 16 is inserted to allow the Registrar to approve forms for use under these rules.

Clause 47. Repeal of Forms

Repeals the forms that are no longer used.

Clause 48. Further Amendments

This section amends the Motor Accidents (Compensation) Appeal Tribunal Rules in accordance with schedule 3 by amending all gender specific references.

Division 3 – Motor Accidents (Compensation) Regulations

Clause 49. Regulations amended

This section amends the regulations in accordance with schedule 4 by replacing references to the ‘Board’ with the ‘Office’.

Clause 50. Act amended

This Division amends the Motor Vehicles Act.

Clause 51. Replacement of Part V, Division 1

This section is amended to include a new definition for Minister.

Clause 52. Replacement of sections 47 to 47C

Repeals sections 47 to 47C to remove reference to the Compensation Contributions Commissioner.

New section 47 (Declaration of Compensation Contributions) is inserted to specify that contribution amounts be automatically indexed annually in accordance with a methodology approved by the Minister, or by another amount approved by the Minister with reference to the independent review.

New section 47A (Reviews) is inserted to prescribe an external review of annual compensation contributions be undertaken every three years or more often, where economic circumstances dictate, as directed by the Minister. In relation to this section, the review is to be undertaken by a competent person who is not an employee of the public sector or the Office and has appropriate qualifications and experience.

Clause 53. Repeal of Part V, Division 3

The Division is repealed as it relates to the Compensation Contributions Commissioner.

Clause 54. New Part IX

A new Part is inserted for transitional matters.

Division 2 Motor Vehicles Regulations

Clause 55. Regulations amended

This Division amends the Motor Vehicles Regulations.

Clause 56. Repeal of regulations 19 and 20

Regulation 19 and 20 are repealed as they relate to the Compensation Contributions Commissioner and the parameters for determining compensation contributions amounts.

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