The Australian Competition and Consumer Commission has granted conditional interim authorisation to enable Allianz Australia Limited, QBE Insurance (Australia) Limited and NRMA Insurance Limited to collectively offer public liability insurance to not-for-profit organisations, ACCC Chairman, Professor Allan Fels, said today.
"This interim authorisation will provide not-for-profit organisations with an additional source of public liability insurance.
"Interim authorisation allows Allianz, QBE and NRMA to collectively offer public liability insurance to not-for-profit organisations while the ACCC considers the merits of the substantive application. A decision to grant interim authorisation does not mean that the ACCC will necessarily grant final authorisation.
"In granting interim authorisation the ACCC has also required the applicants to implement a complaints handling procedure consistent with the Australian standard on complaints handling (AS- 4269-1995).
"The ACCC has sought further information from the applicants in relation to the public reporting of claims data and premium pricing, particularly in the context of tort reform. The ACCC intends to revisit the terms under which interim authorisation has been granted at the time of making its draft decision in relation to the substantive application for authorisation.
"For final authorisation to be granted the applicants are required to demonstrate that there is a public benefit arising from the arrangement sufficient to outweigh any anti-competitive detriment. Before it can grant authorisation, the Trade Practices Act 1974 requires that the ACCC test the applicant's public benefit claims through a transparent public consultation process. This process includes seeking submissions from interested parties, and requires the issue of a draft decision for public comment before the ACCC can issue a final decision".
Interested parties wishing to make a submission in relation to the proposed arrangement should address their submission to: The General Manager, Adjudication Branch, ACCC, PO Box 1199, Dickson ACT 2601 or adjudication@accc.gov.au
Copies of the application and submissions made by the applicants are available from the ACCC website.