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HEALTH LEGISLATION AMENDMENT ACT 1985 No. 70, 1985 - SECT 14
14. After section 66 of the Principal Act the following section is inserted:
Health insurance business to be carried on only by registered organizations
"67. (1) A person (other than a registered organization) shall not carry on
health insurance business.
"(2) A person who contravenes sub-section (1) is, in respect of each day on
which the person contravenes that sub-section (including the day of a
conviction of an offence against this sub-section or any subsequent day),
guilty of an offence punishable on conviction by a fine not exceeding-
(a) if the person is a body corporate, $20,000; or
(b) if the person is a natural person, $2,000.
"(3) A person shall not be taken to contravene sub-section (1) by reason only
that the person is carrying on business for the purpose of discharging
liabilities assumed by the person before the commencement of this section.
"(4) In this section-
'accident and sickness insurance business' means the business of undertaking
liability, by way of insurance, to pay a lump sum, or to make periodic
payments, on the happening of a personal accident, disease or sickness, but
does not include-
(a) any such business where liability is undertaken with respect to loss
arising out of a liability to pay fees or charges in relation to the
provision in Australia of hospital treatment or an ancillary health
benefit; or
(b) business of a kind prescribed for the purposes of this paragraph;
'ancillary health benefit' means-
(a) relevant health services;
(b) services involving the supply, alteration, maintenance or repair of
hearing aids, spectacles, contact lenses, artificial teeth, eyes or
limbs (including parts of teeth or limbs) or other medical, surgical,
prosthetic or dental aids, equipment or appliances;
(c) drugs or medicinal preparations;
(d) ambulance services;
(e) services by an attendant of a person who is sick or disabled; or
(f) any other benefit, or benefit included in a class of benefits,
prescribed for the purposes of this paragraph,
but does not include-
(g) the rendering in Australia of a professional service for which
medicare benefit is, or but for sub-section 18 (4) of the
Health Insurance Act 1973 would be, payable;
(h) hospital treatment; or
(j) any other benefit, or benefit included in a class of benefits,
prescribed for the purposes of this paragraph;
'health insurance business' means the business of undertaking liability, by
way of insurance-
(a) with respect to loss arising out of a liability to pay fees or charges
in relation to the provision in Australia of hospital treatment or an
ancillary health benefit; or
(b) with respect to, or with respect to the happening of an occurrence
connected with, the provision in Australia of hospital treatment or an
ancillary health benefit,
but does not include-
(c) accident and sickness insurance business;
(d) liability insurance business; or
(e) business of a kind prescribed for the purposes of this paragraph;
'hospital' includes a day hospital facility;
'hospital treatment' means accommodation and nursing care for the purpose of
permitting the provision of professional attention, and includes-
(a) the provision at, or on behalf of, a hospital of relevant health
services to an in-patient of the hospital; and
(b) the provision at a hospital of a facility for an in-patient of the
hospital;
'insurance' means insurance to which paragraph 51 (xiv) of the Constitution
applies;
'liability insurance business' means the business of undertaking liability, by
way of insurance, with respect to any loss arising out of a liability to pay
compensation or damages, and includes motor vehicle insurance business and
workers' compensation insurance business;
'motor vehicle insurance business' means the business of undertaking
liability, by way of insurance, with respect to any loss arising out of a
liability to pay compensation or damages by reason of the use of a motor
vehicle;
'relevant health services' means medical, surgical, diagnostic, nursing,
dental, chiropody, chiropractic, eye therapy, occupational therapy,
physiotherapy, speech therapy or similar services or treatment;
'workers' compensation insurance business' means the business of undertaking
liability, by way of insurance, with respect to any loss arising out of a
liability to pay compensation or damages to an employee by reason of an event
occurring in circumstances connected with the employee's employment.".
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