INSURANCE ACT

 

CHAPTER 84:01

 

Act No. 6 of 1980

 

Amended by

 

 

ARRANGEMENTOF SECTIONS

 

          1.    Short title.

          2.    Application of Act.

PRELIMINARY

          3.    Interpretation.

PART I

ADMINISTRATION

          4.    Central Bank to administer Act.

          5.    Power and duties of Inspector.

       5A.    Central Bank may appoint staff.

          6.    Central Bank may delegate powers or duties.

          7.    Reports and other information.

          8.    Inspector may act as arbitrator.

          9.    Central Bank to maintain registers.

PART II

REGISTRATION

        10.    Non‑application of Part.

        11.    Restriction on carrying on insurance business.

        12.    Restriction on carrying on insurance business with unregistered insurer or unregistered broker or without prior approval of the Central Bank.

        13.    Share capital necessary for registration.

        14.    Application for registration.

        15.    Application for registration by companies carrying on insurance business before commencement of this Act.

        16.    Registration of company.

        17.    Central Bank may refuse to register company.

        18.    Mode of execution of documents on foreign company.

        19.    Conditions precedent to appointment of managing director or chief executive officer.

        20.    Condition precedent to becoming a controller.

        21.    Central Bank to be notified of appointment, etc.

        22.    Certificate of registration.

        23.    Company to notify Central Bank of any change in particulars specified in the company’s application.

        24.    Duty of company to furnish Central Bank with copy of form of policy, form of endorsement or form of application.

        25.    Cancellation of registration.

        26.    Reasons for refusal or cancellation.

        27.    Effect of cancellation of registration.

        28.    Appeals.

        29.    Amount and form of deposits.

        30.    Deposits to form part of assets.

        31.    Application for a release of deposit.

        32.    Central Bank may release deposit to liquidator or refund deposit to company.

        33.    Central Bank to furnish certificate of deposit.

        34.    Increase of deposit on depreciation of securities.

        35.    Responsibility for lost securities.

        36.    Substitution of deposit.

STATUTORY FUNDS

        37.    Establishment of statutory fund.

        38.    Restriction on use of assets representing statutory funds.

        39.    Method of creating trust.

        40.    Restriction on trustee dealing with assets.

        41.    Company to furnish particulars of liabilities and assets with respect to fund.

        42.    Inaccurate or misleading particulars.

        43.    Company to furnish Central Bank with information.

        44.    Appeal against direction by Central Bank.

        45.    Assets in the statement deemed to be assets in statutory fund.

        46.    Investment of assets of statutory fund.

        47.    Local assets ratio.

        48.    Prohibitions with respect to acquiring shares or lending funds.

        49.    Investments to be made in corporate name.

catastrophe Reserve Fund

     49A.    Establishment of catastrophe reserve fund.

Accounts, Balance SHEETS,RECORDS AND AUDIT

        50.    Duty of company to keep books, vouchers, etc.

        51.    Inspector may request information in order to ascertain ability of company to meet its obligations.

        52.    Inspector may request appraisement of real property.

        53.    Apportionment of receipts and payments between insurance business and other business.

        54.    Apportionment of receipts and payments between various classes of insurance business.

        55.    Certificate as to apportionment.

        56.    Accounts and balance sheets.

        57.    Audit.

        58.    Appreciation and depreciation of assets.

        59.    Restriction on appointment of auditor.

DOCUMENTS TO BE FURNIShED TOTHE CENTRAL BANK

        60.    Annual returns.

        61.    Accounts, balance sheets, etc., to be signed and submitted.

        62.    Offence for company not to lodge documents within the time specified.

        63.    Copies to be furnished.

        64.    Power of Inspector to request information.

        65.    Power of Central Bank to intervene.

        66.    Central Bank to serve notice on company of his intention to intervene.

        67.    Central Bank may impose requirements on a company.

JUDICIAL MANAGEMENT ANDWINDINg UP

        68.    Application for judicial management.

        69.    Judicial management.

        70.    Report by judicial manager.

        71.    Decision of Court on report of judicial manager.

        72.    Transfer of business to another company.

        73.    Cancellation of contracts or agreements.

        74.    Indemnity.

        75.    Cancellation of judicial management order.

        76.    Court may order winding up.

        77.    Margin of solvency for general business.

        78.    Procedure on winding up.

        79.    Ascertainment of value of liability under policies.

        80.    Application of certain assets.

        81.    Liability of directors and officers.

        82.    Application of deposits.

        83.    Winding up of part of business of company.

TRANSFER AND AMALGAMATION

        84.    Condition precedent to transfer, or amalgamation of insurance business.

        85.    Scheme to set out terms of agreement or deed.

        86.    Submission, confirmation and effect of schemes.

        87.    Return to be made in case of transfer or amalgamation.

PART III

AGENTS, BROKERS,SALESMEN AND ADJUSTERS

        88.    Registration of agents, brokers, salesmen and adjusters.

        89.    Application for registration.

        90.    Restrictions on registration.

        91.    Central Bank to register person as salesman, agent, broker or adjuster.

        92.    Certificate of Registration.

        93.    Certificate to be produced on request.

        94.    Intention to cancel registration.

        95.    Cancellation of registration.

        96.    Establishment and composition of Tribunal.

        97.    Appointment of temporary members to Tribunal.

        98.    Right of appeal to Tribunal uncertain cases.

        99.    Notice of termination of agency to be given.

      100.    Central Bank may request information.

      101.    Agent or salesman deemed to be agent of insurer.

      102.    Liability for unlawful contracts.

      103.    Misleading advertisements.

      104.    Restriction on payment of compensation for placing or negotiating insurance.

      105.    Rebating.

      106.    Exemption for payment of dividend to salaried employee.

      107.    Insurer to make return to Central Bank.

      108.    Authority of agents.

      109.    Minister to specify maximum rate of commission.

      110.    Offence to procure payment of premium by fraudulent representations, etc.

      111.    Offence to fail to pay premiums to insurer.

PART IV

LONG‑TERMINSURaNCE BUSINESS

Actuarial Investigations

      112.    Company to appoint actuary.

      113.    Actuarial reports and abstracts and statements of long‑term insurance business.

      114.    Provisions relating to valuations.

      115.    Actuary to certify dealings with assets of statutory fund.

      116.    Distribution of surplus.

ISSUE OF POLICIES

      117.    Rates of premium.

      118.    Restriction on commission to be paid or reduction of premium to be allowed.

      119.    Form of proposal to be approved by the Central Bank.

      120.    Company may give notice requiring proof of age.

      121.    Procedure where company declines to accept proof of age tendered.

      122.    Policy not to be avoided by reason only of mis-statement of age of the life insured or other incorrect statement.

      123.    Minors may effect policies or take assignments of policies.

      124.    Persons who are deemed to have insurable interests.

ASSIGNMENTSAND MORTGAGES OF POLICIES

      125.    Assignment of policies.

      126.    Effect of notice.

      127.    Assignment of policy to company not to extinguish rights and liabilities.

      128.    Policies held by trustees.

      129.    Memorandum of discharge and deed of release.

      130.    Existing assignments and notices to continue to have effect.

PROTECTIONOF POLICIES

      131.    Interest of insured to be protected in certain cases.

PAID‑UPPOLICIES, SURRENDER VALUES AND NON­-FORFEITURE

      132.    Application to class of policy.

      133.    Paid‑up policies.

      134.    Surrender of policies.

      135.    Central Bank may suspend or vary obligation of company to pay surrender value.

      136.    Non‑forfeiture of ordinary policies in certain cases of non‑payment of premiums.

      137.    Non‑forfeiture of industrial policy in certain cases of non‑payment of premiums.

      138.    Treatment of debts on issue of paid‑up policies.

PAymentof policy moneys

      139.    Money payable to beneficiary.

      140.    Payment of policy moneys without production of grant of probate or letters of administration in certain cases.

      141.    Company discharged from further liability in certain cases.

      142.    Declaration that certain requirements have been satisfied may be endorsed on policy in certain cases.

      143.    Company may pay money to the Central Bank.

      144.    Unclaimed money.

PROVISIONS RELATING TO INDUSTRIAL LIFE INSUrANCE BUSINESS

      145.    Objection to policies.

      146.    Return of industrial policy and premium-receipt book after inspection.

      147.    Falsification.

      148.    Avoidance of policy by reason of particulars in proposal filled in by agent or servant of a company.

      149.    Particulars to be specified in policies.

      150.    Issue of premium-receipt book.

      151.    Premium-receipt book to show date to which premiums have been paid.

      152.    Guarantor not liable to refund commission on lapsed policies.

      153.    Certificate as to agent’s or guarantor’s indebtedness not conclusive evidence thereof.

Mutualisation

      154.    Conversion into mutual company.

      155.    Application to establish a plan.

      156.    Appointment of independent actuary.

      157.    Approval of application.

      158.    Detailed plan to be submitted to Central Bank.

      159.    Acceptance of plan by shareholders and policyholders.

      160.    Recovery of expenses.

miscellaneous

      161.    Register to be kept.

      162.    Registration of policies.

      163.    Lost policy.

      164.    Effect of capital punishment or suicide on policy.

      165.    Conditions as to war risk void.

      166.    Policy not invalidated in certain cases.

PART V

general Insurance Conditions

      167.    Application of sections.

      168.    Computation of reserves liability.

      169.    Dividend not to impair capital.

      170.    Contravention.

      171.    Appropriation of profits towards surplus.

      172.    Additional reserves.

      173.    Rates of premium to be prescribed.

PART VI

PENSION FUND PLANS

      174.    Plan to be registered.

      175.    Qualifications for registration of plan.

      176.    Registration.

      177.    Amendment not valid until registered.