38Interest on claims

#### 38 Interest on claims (1) For the purposes of subsection 57(3) of the Act, the rate applicable to a day in respect of which interest is payable by an insurer, is the rate worked out under the following formula:  where: > Y is the rate of: (a) 10‑year Bond yield at the end of the half‑financial year ending in the period that, in relation to the withheld amount, is mentioned in subsection 57(2) of the Act, or (b) if more than one half‑financial year has ended during that period—the mean of the rates of the 10‑year Bond yield at the end of each of those half‑financial years; or (c) if no half‑financial year has ended during that period—the 10‑year Bond yield at the end of the half‑financial year immediately preceding the commencement of that period. (2) In subsection (1): > 10‑year Bond yield means the rate known as the 10‑year Australian Government Bond yield, published by the Reserve Bank of Australia. > mean, in relation to rates, means, if the mean of the rates is not a whole number, or does not end in .75, .50 or .25, the mean rate rounded to the nearest lower quarter of 1%.