When a self-insurer becomes an eligible subsidiary of a holding company
396 When a self-insurer becomes an eligible subsidiary of a holding company
If—
a self-insurer (the eligible subsidiary) becomes an eligible subsidiary of a body corporate (the holding company); and
the holding company applies for approval under section 383 as a self-insurer—
the holding company may elect, when applying for that approval, to assume the liability for, and the responsibility for management of, its tail claims and the tail claims of the eligible subsidiary.
A holding company that makes an election under subsection (1), must, on or before its approval as a self-insurer takes effect, give the Authority a guarantee in accordance with section 399 in respect of its tail claims and the tail claims of the eligible subsidiary.
S. 396(3) amended by No. 44/2014 s. 24(17).
If the holding company gives a guarantee in accordance with subsection (2), the holding company assumes the liability for, and the responsibility for management of, its tail claims and the tail claims of the eligible subsidiary on the date on which the approval of the holding company as a self-insurer takes effect under section 383(3)(a).
If the holding company does not make an election under subsection (1), the Authority retains the liability for, and the responsibility for management of, the tail claims of the eligible subsidiary in accordance with section 403.
S. 396(5) amended by Nos 44/2014 s. 24(18), 21/2015 s. 3(Sch. 1 item 68).
In this section—
tail claim, in relation to a self-insurer that becomes an eligible subsidiary of a holding company, means a claim, whenever made—
in respect of an injury or death incurred or suffered—
by a worker employed by the self‑insurer before it became an eligible subsidiary of the holding company; or
by a worker employed by the holding company or an eligible subsidiary of the holding company before the holding company is approved as a self-insurer under section 383(1)(a); or
if the holding company makes an election to assume liability for the tail claims of an eligible subsidiary of the holding company, by a worker employed by the eligible subsidiary before the transfer date or the date on which the eligible subsidiary ceases to be a self-insurer, whichever first occurs; or
if the holding company does not make an election to assume liability for the tail claims of an eligible subsidiary of the holding company, by a worker employed by the eligible subsidiary before the Authority assumed liability for, and responsibility for the management of, the eligible subsidiary under section 403; or
by a worker that was assumed by the self-insurer before it became an eligible subsidiary of the holding company, whether by agreement with the Authority or under this section or section 395, 397 or 398 of this Act or section 150 or 150A of the Accident Compensation Act 1985; and
that entitles the worker, the dependants of the worker or the members of the worker's family to—
compensation or any other payments under this Act (other than section 576 or 578) or the Accident Compensation Act 1985 (other than section 242AB or 242AD); or
damages at common law as permitted by and in accordance with Division 2 of Part 7 (other than sections 348 to 356 inclusive) or section 366 of this Act or section 134AB or 135C of the Accident Compensation Act 1985;
transfer date means the date agreed between the Authority and the holding company as the date on which the liability for, and the responsibility of the management of, the tail claims of the eligible subsidiary are to be assumed by the holding company.
This Act’s bill:Explanatory memorandumSecond reading speech
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