Commonwealth Consolidated Acts

LIFE INSURANCE ACT 1995 - SECT 216

             (1)  Within 3 months after the end of each calendar year, a life company must give to ASIC a statement in the form prescribed by the regulations of all unclaimed money, other than unclaimed money held in RSAs (within the meaning of the Retirement Savings Accounts Act 1997 ) or FHSAs (within the meaning of the First Home Saver Accounts Act 2008 ), as at the end of that year.

Note:          The First Home Saver Accounts Act 2008 deals with unclaimed money held in FHSAs.

             (2)  A life company must not intentionally or recklessly fail to comply with subsection (1).

Penalty:  50 penalty units.

Note:          Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

             (3)  When the company gives the statement to ASIC, it must at the same time pay to the Commonwealth an amount equal to the amount of unclaimed money worked out under subsection (6).

             (4)  If, between the end of the calendar year and the date on which the statement is given to ASIC, the company has paid any money to persons to whom the amounts were due by the company, the company must give ASIC, with the statement under subsection (1), a statement in the form prescribed by the regulations relating to the amounts so paid.

             (5)  A life company must not intentionally or recklessly fail to comply with subsection (3) or (4).

Penalty:  50 penalty units.

Note:          Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

             (6)  For the purposes of subsection (3), the amount to be paid to the Commonwealth is an amount worked out in accordance with the formula:

where:

"Statement amount" means the total of unclaimed money shown in the statement referred to in subsection (1).

"Money paid" means the total of any amounts paid to persons to whom the amounts were due by the company between the end of the calendar year and the date on which the statement referred to in subsection (1) is given to ASIC.

             (7)  If:

                     (a)  unclaimed money has been paid by a company to the Commonwealth under this section; and

                     (b)  ASIC or an authorised officer certifies in writing that, apart from this section, the company or a successor company would have paid that money to a person;

the Treasurer must:

                     (c)  cause the unclaimed money to be paid to that company; and

                     (d)  direct the company to pay the money to the person specified in the direction.

             (8)  A direction must be in writing.

             (9)  The company must not intentionally or recklessly fail to comply with a direction under paragraph (7)(d).

Penalty:  50 penalty units.

Note:          Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

           (10)  If a company satisfies ASIC or an authorised officer that an amount paid to the Commonwealth under this section is more than the amount that would have been payable under the policy to the policy owner, an amount equal to the excess is to be refunded to the company.

           (11)  Subject to subsection (7), if a company pays an amount to the Commonwealth under this section, the company is, upon that payment, discharged from further liability in respect of that amount.

           (12)  The Consolidated Revenue Fund is appropriated to the extent necessary for the purposes of this section.

           (13)  ASIC must keep a register that contains:

                     (a)  particulars of each amount of unclaimed money specified in a statement given to ASIC for the purposes of subsection (1); and

                     (b)  particulars of the persons to whom, if this section had not been enacted, the money would have been payable.

           (14)  The particulars referred to in paragraph (13)(b) may include a person's tax file number.

        (14A)  It is the intention of the Parliament that a law of a State or Territory has no effect to the extent to which it requires a life company to:

                     (a)  pay unclaimed money to, or to an authority of, a State or Territory; or

                     (b)  lodge a return relating to unclaimed money with, or with an authority of, a State or Territory.

           (15)  In this section:

"authorised officer" means a member of staff authorised by ASIC for the purposes of this section.

"successor company , in relation to another company (the first company" ), means the company to which the life insurance business of the first company has been transferred.

"unclaimed money" means:

                     (a)  all sums of money that have become legally payable by a company in respect of policies; but

                     (b)  in respect of which the time within which proceedings may be taken for their recovery has expired;

and includes:

                     (c)  sums of money payable on the maturity of a policy which are not claimed within 7 years after the maturity date of the policy; and

                     (d)  any money that the company considers should be treated as unclaimed money.