TheAustralian Prudential Regulation Authority(APRA) is again being sued for defamation by Rural & General Insurance Broking, following an earlier aborted defamation proceeding, for a warning issued to consumers which the company says was unproven.
Earlier this year APRA claimed that Rural & General International Insurance Limited was registered in Vanuatu as an exempt general insurer and was not authorised to insure any risks within Vanuatu or to solicit insurance business from the public within or beyond Vanuatu, but was thought to be actively selling insurance policies in Australia through Rural & General Insurance Broking.
Rural & General then launched a defamation proceeding in the District Court of NSW, which was later withdrawn when it learned new legislation prohibited companies with 10 or more staff suing for defamation.
Despite Rural & General beginning a new action in the ACT’s Supreme Court on July 7, APRA issued a media release virtually claiming victory in the earlier proceedings, stating that the proceeding had been discontinued by the judge and “subpoenas issued by the broker set aside as an abuse of process”, with Rural & General ordered to pay APRA’s costs.
A spokesperson for Rural & General says “such a statement was a patently false statement known to be false by APRA at the time of its making because APRA knew the only reason for discontinuing the defamation proceedings in the District Court of NSW was because of the new legislation”.
According to Rural & General, as APRA has so far failed to file a notice of appearance within the time frame allowed under the ACT Supreme Court rules, counsel has advised the insurer that they may seek record damages, including punitive damages for “APRA’s contemptuous disregard for the rights of Rural & General”.
Rural & General also says APRA has not commenced any action against it despite the allegations that Rural & General is dealing with an insurer which is not authorised to carry on insurance business.
