INSURANCE ACT: SUBSIDIARY LEGISLATION
INDEX TO SUBSIDIARY LEGISLATION
Insurance (Minimum Paid-Up Share Capital) Regulations
Insurance (Fidelity Fund) Regulations
INSURANCE (MINIMUM PAID-UP SHARE CAPITAL) REGULATIONS
[Sections 41 and 132]
Arrangement of Regulations
Regulation
3. Minimum paid-up share capital
4. Preparation and submission of statement
SI 71 of 2015.
These Regulations may be cited as the Insurance (Minimum Paid-Up Share Capital) Regulations, 2015.
In these Regulations, unless the context otherwise requires "Authority" means the Pensions and Insurance Authority established under section 4 of the Pension Scheme Regulation Act.
3. Minimum paid-up share capital
A re-insurer, insurer or broker shall maintain the minimum paid-up share capital prescribed in the Schedule.
4. Preparation and submission of statement
(1) A re-insurer, insurer or broker that fails to meet the minimum paid-up share capital shall prepare, at 31st March, 30th June, 30th September and 31st December of each year a statement in a form approved by the Registrar.
(2) The statement referred to in sub-regulation (1) shall indicate the authorised and paid-up share capital for the prescribed period and shall be duly signed and submitted to the Registrar by the reinsurer, insurer or broker within 30 days from the end of the period to which it relates.
A re-insurer, insurer or broker shall comply with these Regulations within a period of two years from the commencement of these Regulations or such longer period as the Authority shall specify.
[Regulation 3]
MINIMUM PAID-UP SHARE CAPITAL
1. A re-insurer shall maintain a minimum paid-up share capital equal to or more than K20,000,000.
2. An insurer shall maintain a minimum paid-up share capital equal to or more than the following amounts
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General Insurance |
Long Term Insurance |
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10,000,000 |
12,000,000 |
3. A broker shall maintain a minimum paid-up share capital equal to or more than K100,000.
INSURANCE (FIDELITY FUND) REGULATIONS
[Sections 109, 111, 113, 114 and 115]
Arrangement of Regulations
Regulation
15. Revocation of S.I. No. 59 of 2019
SI 38 of 2021.
These Regulations may be cited as the Insurance (Fidelity Fund) Regulations, 2021.
In these Regulations, unless the context otherwise requires
"beneficiary" means a person who holds a beneficial interest in a policy, other than the holder of a policy;
"Board" means the Pensions and Insurance Authority Board established under the Pensions Scheme Regulation Act, 1996;
"claim" means an application for payment from the Fund as provided in regulation 8;
"Committee" means the Policy Holder's Protection Committee constituted under section 106 of the Act; and
"Fund" means the Insurance Fidelity Fund established under regulation 3.
There is established the Insurance Fidelity Fund for the purposes of indemnifying or otherwise protecting holders or beneficiaries of a policy held with an insurer that is unable to meet that insurer's liabilities.
(1) The Committee shall administer and manage the Fund.
(2) The Committee shall establish prudent controls for the Fund, especially relating to
(a) fiscal controls and accounting procedures governing the Fund;
(b) reporting procedures for matters relating to the Fund; and
(c) investment of the monies of the Fund.
{mprestriction ids="2,3,5"}
(3) The Committee shall cause to be kept proper books of account and other records relating to the account of the Fund.
(4) The Fund shall be audited annually by the Auditor-General or an auditor appointed by the Auditor-General.
Subject to the Public Finance Management Act, 2018, the Committee shall open and operate an account for purposes of the Fund at a commercial bank that the Board may determine.
(1) The expenses incurred in the administration of the Fund and payable out of the Fund shall not exceed 15 per cent of the total value of the Fund as at 31st December of the previous year.
(2) The total amount of claims payable out of the Fund under these Regulations to a claimant who is entitled to indemnity shall not exceed the amount due to that claimant under the policy.
The Committee may insure the Fund with an insurer registered under the Act in order to provide indemnity to the Fund against grants made under these Regulations.
(1) A person who suffers pecuniary loss caused by an insurer or broker licensed under the Act or an employee of the insurer or broker in the course of a licensed activity, may apply to the Committee for a grant out of the Fund to compensate the applicant for the loss incurred in Form I set out in the Schedule.
(2) The Committee shall, within 60 days of receipt of the application under sub-regulation (1), determine the application and notify the applicant of the approval or rejection of the application in Form II or Form IV set out in the Schedule.
(3) The Committee may grant a claim under this regulation despite the fact that after the commission of the act giving rise to the claim
(a) the insurer or broker has died or ceased to carry on the licensed activity under the Act; or
(b) the registration of the insurer or broker is cancelled or the insurer or broker is suspended from carrying on the licensed activity under the Act.
The Committee shall, where it requires more information in relation to a claim made under regulation 8, notify the applicant in Form III set out in the Schedule.
The Committee shall not authorise the payment of a claim out of the Fund where
(a) the applicant is or was a shareholder, executive director or executive officer who has previously been in the employment of the insurer or broker which is in default for a period of three years immediately preceding the claim;
(b) the insurer or broker in default has not been declared insolvent by the Registrar at the time of application and on the findings of the Committee, the liquidator confirms that the assets of the insurer or broker are sufficient to settle the holder or beneficiary's claim; or
(c) the applicant makes a claim more than five years of the date of publication of the liquidation schedule.
(1) The Committee shall where it grants a claim under regulation 8, pay the grant out of the Fund within sixty days of the date of approval of the claim.
(2) The amount payable to a claimant in respect of an insurer or a broker in default shall not exceed 10 per cent of the value of the Fund as at 31st December of the previous year.
(1) Subject to regulation 11, where the amount at credit in the Fund is insufficient to pay the whole amount of the claim against the Fund, which is allowed, the amount of credit in the Fund shall abate in equal proportions.
(2) A claimant who received funds in accordance with sub-regulation (1) shall have no further claim to the Fund.
(1) A person aggrieved by the decision of the Committee may appeal to the Board within 30 days of receipt of the decision of the Committee in Form V set out in the Schedule.
(2) The Board shall consider the appeal within 90 days and notify the person of its decision within 14 days of the date of the decision.
(3) A person aggrieved by the decision of the Board may appeal to the court.
(1) As soon as practicable, but not later than 90 days after the end of the financial year, the Committee shall submit to the Minister a report concerning its activities during the financial year.
(2) The report under sub-regulation (1) shall include information on the financial affairs of the Committee and there shall be appended to the report
(a) an audited statement of financial position;
(b) an audited statement of comprehensive income; and
(c) other information that the Minister may require.
(3) The Minister shall, not later than seven days after the first sitting of the National Assembly next after receipt of the report under sub-regulation (1), lay the report before the National Assembly.
15. Revocation of S.I. No. 59 of 2019
The Insurance (Fidelity Fund) Regulations, 2019, are revoked.
[Regulations 8, 9, 10 and 13]
FORM I
[Regulation 8]
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The Insurance Act, 1997 |
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(Act No. 27 of 1997) |
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The Insurance (Fidelity Fund) Regulations, 2021 |
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APPLICATION FOR CLAIM FOR PAYMENT |
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Shaded fields for official use only |
Code |
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Date/Time |
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Please complete in block letters |
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1. |
Names of applicant: |
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(a) Surname |
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(b) Forename(s) |
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2. |
(a) Nationality |
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(b) Identity card- |
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(i) NRC |
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(ii) Passport No. |
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3. |
Notification address |
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Tel No.: |
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Fax No.: |
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E-mail: |
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4. |
Particulars of claim (attach supporting documents) |
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5. |
Bank details of applicant |
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6. |
STATUTORY DECLARATION |
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I ............................. do solemnly declare that the information provided in this application is correct and true, and complete to the best of my knowledge and belief. |
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.................................... |
............................... |
FORM II
[Regulation 8(2)]
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The Insurance Act, 1997 |
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(Act No. 27 of 1997) |
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The Insurance (Fidelity Fund) Regulations, 2021 |
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NOTICE OF APPROVAL OF APPLICATION |
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(1) Here insert the full names and address of the applicant |
To (1) ..................................................................................................... |
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.............................................................................................................. |
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.............................................................................................................. |
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(2) Here insert the serial No. of the application |
IN THE MATTER OF (2) ............................................................................ you are notified that your application for ........................................ has been approved by the Committee on the following terms and conditions: |
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(a) ................................................................................................ |
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(3) Signature of Chairperson |
(b) ................................................................................................ |
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(c) ................................................................................................ |
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(d) ................................................................................................ |
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within ........................................... days. If you fail to furnish the requested information within the stipulated period, your claim will be treated as invalid and shall be rejected. |
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Dated this ........... day of ...................... 20...... |
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(3) .................................................... |
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FORM III
[Regulation 9]
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The Insurance Act, 1997 |
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(Act No. 27 of 1997) |
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The Insurance (Fidelity Fund) Regulations, 2021 |
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REQUEST FOR FURTHER INFORMATION |
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(1) Here insert the full names and address of the applicant |
To (1) ..................................................................................................... |
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.............................................................................................................. |
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.............................................................................................................. |
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(2) Here insert the serial No. of the application |
IN THE MATTER OF (2) ............................................................................ you are requested to furnish the following information or documents in respect of the following claim: |
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(a) ................................................................................................ |
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(3) Signature of Chairperson |
(b) ................................................................................................ |
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(c) ................................................................................................ |
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(d) ................................................................................................ |
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within .......................... days. If you fail to furnish the requested information within the stipulated period, your claim will be treated as invalid and shall be rejected. |
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Dated this ............ day of ...................... 20...... |
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(3) ................................................. |
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FORM IV
[Regulation 8(2)]
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The Insurance Act, 1997 |
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(Act No. 27 of 1997) |
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The Insurance (Fidelity Fund) Regulations, 2021 |
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NOTICE OF REJECTION OF APPLICATION |
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(1) Here insert the full names and address of the applicant |
To (1) ..................................................................................................... |
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.............................................................................................................. |
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.............................................................................................................. |
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(2) Here insert the serial No. of the application |
IN THE MATTER OF (2) ............................................................................ you are notified that your application for ..................................................... has been rejected by the Committee on the following grounds: |
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(a) ................................................................................................ |
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(b) ................................................................................................ |
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(c) ................................................................................................ |
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(d) ................................................................................................ |
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Dated this ........... day of ...................... 20...... |
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................................................. |
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FORM V
[Regulation 13]
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The Insurance Act, 1997 |
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(Act No. 27 of 1997) |
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The Insurance (Fidelity Fund) Regulations, 2021 |
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NOTICE OF APPEAL TO BOARD IN THE MATTER OF ............................................................ |
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*(Appellant's reference and matter of appeal) I appeal, against the decision of the Committee on the following grounds: |
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(a) ............................................................................................................................... |
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(b) ............................................................................................................................... |
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(c) ............................................................................................................................... |
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(d) ............................................................................................................................... |
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Dated this ............ day of ...................... 20...... |
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............................................... |
{/mprestriction}