Document ID: chunk:federal_register_of_legislation:C1961A00071:body:0:p3
Version: federal_register_of_legislation:C1961A00071
Segment Type: other
Provision Reference: 
Character Range: 5253–8021

under that sub-section and the commencement of the next such review.".
5. After section thirty-seven of the Principal Act the following section is inserted:—

Insurance.
"37a.—(1.) In this section, 'risks to which this section applies' means the following risks, to the extent to which, in the case of privately-owned air transport undertakings, they are customarily covered by insurance:—
       (a) risk of loss of, or damage to, aircraft of the Commission and parts of, and equipment for, such aircraft;
       (b) risk of liability in respect of the death of, or injury to, passengers in aircraft of the Commission; and
       (c) risk of liability in respect of the death of, or injury to, persons on the surface, or damage to property on the surface, caused by an aircraft of the Commission in flight or by any person or thing falling from such an aircraft.
"(2.) So long as the Commission is not fully insured by policies of insurance against all risks to which this section applies, the Commission shall maintain an account (in this section referred to as 'the prescribed account') for the purpose of making provision against risks to which this section applies, so far as they are not covered by insurance.
"(3.) The Commission shall credit to the prescribed account—
       (a) any amount that, immediately before the date of commencement of this section, appeared in the accounts of the Commission as a provision in lieu of insurance against risks that, upon that date, became risks to which this section applies;

       (b) such sums as are approved by the Minister, with the concurrence of the Treasurer, as being equivalent to the current commercial premiums that would be payable by the Commission for insurance in respect of risks to which this section applies, so far as they are not covered by insurance;
       (c) interest received by the Commission upon securities representing moneys standing to the credit of the prescribed account, and any profits upon the realization of any such securities; and
       (d) the whole, or such part as the Minister approves as being appropriate, of any damages, compensation or other moneys received or recovered by the Commission in respect of a loss referred to in paragraph (a) of the next succeeding sub-section.
"(4.) The Commission shall debit to the prescribed account—
       (a) where the Commission suffers loss, not fully covered by insurance, by reason of a risk to which this section applies, such amount in respect of that loss as the Minister approves as being appropriate having regard to the provision made under this section in lieu of insurance against that risk;
       (b) payments to the Commonwealth of interest upon any loan made to the Commission in accordance with the next succeeding