Bulk Handling Act 1967

The Company shall, at its own expense, insure all grain from time to time in its custody or under its control to its full insurable value with a public insurance company that has, or underwriters who have, complied with the provisions of the Insurance Act 1932 ⁵ of the Commonwealth, as from time to time amended, against loss or damage by fire, explosion, storm, tempest or flooding and against such other insurable risks as may from time to time be prescribed.

The Company is authorised to receive and give a good discharge for all moneys payable under, and in respect of, and to settle, adjust and compromise all claims under, a policy of insurance.

Where any loss or damage occurs to any grain in the custody, or under the control, of the Company that is covered by insurance, the Company may apply the insurance moneys recovered in or towards the purchase of grain to replace that destroyed or damaged, or, at its discretion, may pay those moneys to a reserve fund to meet any liability for shortages under the provisions of section 16.