Act No: CAP. 487
Act Title: INSURANCE
SUBSIDIARY LEGISLATION
Arrangement of Sections
THE INSURANCE REGULATIONS

ARRANGEMENT OF REGULATIONS

PART I – PRELIMINARY

1.

Citation

2.

Applicability

3.

Interpretation

4.

Excluded business

PART II – REGISTRATION OF INSURERS

5.

Insurer’s application for registration

6.

Registration and annual fees

7.

Statements to be submitted under section 30(k) of the Act

7A.

Deposits for Insurers Registration

PART III – ADMITTED ASSETS AND ADMITTED LIABILITIES

8.

[Deleted by L.N. 93/2019, r. 2.]

PART IV – ACCOUNTS, BALANCE SHEETS, AUDIT AND ACTUARIAL INVESTIGATIONS

9.

Classes of insurance business in respect of which separate accounts to be maintained

INSURANCE BUSINESS — CLASSES OF BUSINESS

10.

Classes of general insurance business in respect of which separate accounts to be maintained

11.

Forms of accounts

12.

Actuarial abstracts

13.

Statements of long-term insurance business

14.

Actuarial valuation of liabilities

15.

Prescribed basis

16.

Actuary’s certificate

17.

Annual returns: long term insurance business

18.

Annual returns: general insurance business

19.

Annual returns: supplementary provisions

20.

Authentication and certification of accounts and statements

PART V – MANAGEMENT AND EXPENSES

21.

Management expenses

22.

Restriction on commission

PART VI – POLICY TERMS

23.

Exemption from the provision regarding avoidance of contracts of unlimited amounts

24.

Paid up policies

25.

Surrender values

26.

Payment of interest on overdue premiums

27.

Paid up industrial life policies

28.

Certain policies to which sections 88-92 do not apply

PART VII – NOMINATIONS

29.

Nomination of minors

30.

Fee for registering, cancelling or changing a nomination

PART VIII – CLAIMS ON SMALL LIFE POLICIES

31.

Fee for adjudication

PART IX – MANDATORY REINSURANCE CESSIONS

32.

Mandatory cessions

33.

Payment of re-insurance cessions

PART X – INTERMEDIARIES, CLAIMS SETTLING AGENTS, INSURANCE SURVEYORS, MEDICAL INSURANCE PROVIDERS, LOSS ADJUSTERS, MOTOR ASSESSORS, INSURANCE INVESTIGATORS AND RISK MANAGERS

34.

Forms of application for registration and renewal of registration of intermediaries, etc

35.

Policy of professional indemnity for a broker

36.

Statement of business

37.

Fees payable

38.

Other documents

39.

Bank guarantee for broker’s registration

40.

Returns by corporate persons under the Act

PART XI – ADVANCE PAYMENT OF PREMIUM

41.

Advance payment of premium

42.

Despatch of premium

43.

Relaxations

PART XII – GENERAL PROVISIONS

44.

Folio copies

45.

Inspection fees

46.

Fees for duplicate certificates

PART XIII – SUPPLEMENTARY PROVISIONS

47.

Application for remittance

48.

Claims

49.

Manner of payment of fees

50.

Reference to schedules

51.

Monthly insurance training levy return

52.

Monthly premium tax return

53.

Annual premium tax return

54.

Monthly re-insurance premium tax return

55.

Annual premium tax return

56.

Annual Insurance Training Levy return

57.

Payment of Insurance Training Levy

58.

Monies Payable to Fund

SCHEDULES

FIRST SCHEDULE —

APPLICATION FOR REGISTRATION AS AN INSURER

SECOND SCHEDULE —

DELETED

THIRD SCHEDULE [r. 52, r. 10] —

GENERAL INSURANCE BUSINESS

FOURTH SCHEDULE [s. 57(1)(b), r. 12] —

PROVISIONS RELATING TO THE PREPARATION OF ABSTRACTS OF ACTUARY’S REPORTS

FIFTH SCHEDULE [s. 57(3), r. 13] —

PROVISIONS RELATING TO THE PREPARATION OF STATEMENTS OF LONG —TERM INSURANCE BUSINESS

SIXTH SCHEDULE [S. 57(5), r. 14] —

REGULATIONS RELATING TO ACTUARIAL VALUATION OF LIABILITIES

SEVENTH SCHEDULE [s. 58(3), r. 15] —

RULES FOR THE CALCULATION OF THE VALUE OF LIABILITIES ON THE PRESCRIBED BASIS

EIGHTH SCHEDULE [r. 16] —

ACTUARY’S CERTIFICATE

NINTH SCHEDULE —

NOTES TO FORM NOS. INS. 59-1 TO 59-12

TENTH SCHEDULE [s. 70, r. 21] —

LIMITATION OF EXPENSES OF MANAGEMENT TERM INSURANCE BUSINESS OTHER THAN INDUSTRIAL LIFE ASSURANCE BUSINESS

ELEVENTH SCHEDULE [s. 73(2), r. 22] —

MAXIMUM BROKERAGE, COMMISSION OR OTHER INTERMEDIARY PROCURATION FEES PAYABLE

TWELFTH SCHEDULE [s. 88(1), r. 24] —

RULES FOR ASCERTAINING THE AMOUNT OF A PAID UP POLICY

THIRTEENTH SCHEDULE [s. 89(3), r. 25] —

RULES FOR ASCERTAINING THE SURRENDER VALUE OF A POLICY

FOURTEENTH SCHEDULE [s. 111(1), r. 29] —

FORMS

FIFTEENTH SCHEDULE [r. 32, 33] —

MANDATORY REINSURANCE CESSIONS

SIXTEENTH SCHEDULE [r. 34] —

APPLICATIONS

SEVENTEENTH SCHEDULE [s. 151(1)(a), r. 35.] —

PROFESSIONAL INDEMNITY POLICY

EIGHTEENTH SCHEDULE [s. 151(1)(e), r. 36] —

STATEMENT OF BUSINESS OF A BROKER

NINETEENTH SCHEDULE [s. 39] —

FORM OF GUARANTEE

TWENTIETH SCHEDULE [r. 47] —

APPLICATION TO REMIT FUNDS OVERSEAS

TWENTY-FIRST SCHEDULE —

SUMMARY OF CLAIMS

TWENTY-SECOND SCHEDULE [r. 34(2)] —

REGISTRATION AS AN INSURANCE/REINSURER

TWENTY-THIRD SCHEDULE [r. 51] —

MONTHLY INSURANCE PREMIUM LEVY RETURN

TWENTY-FOURTH SCHEDULE [r. 52] —

MONTHLY PREMIUM TAX RETURN

TWENTY-FIFTH SCHEDULE —

ANNUAL PREMIUM TAX RETURN

TWENTY-SIXTH SCHEDULE —

LONG TERM AND GENERAL INSURANCE BUSINESS

TWENTY-SEVENTH SCHEDULE —

QUARTERLY RE-INSURANCE PREMIUM LEVY RETURN

TWENTY-EIGHTH SCHEDULE —

ANNUAL RE-INSURANCE PREMIUM TAX RETURN

TWENTY-NINTH SCHEDULE —

ANNUAL INSURANCE TRAINING LEVY RETURN

THE INSURANCE (POLICYHOLDERS' COMPENSATION FUND) REGULATIONS

ARRANGEMENT OF REGULATIONS

1.

Citation

2.

Interpretation

3.

Establishment of the Policyholders’ Compensation Fund

4.

Tenure of office of Board members

5.

Validity of Board proceedings

6.

Disclosure of interest

7.

Delegation by the Board

8.

Use of the seal of Board

9.

Contributions

10.

Directions to the Board

11.

[Deleted by L.N. 91/2019]

12.

Duty of the Board to determine and pay compensation

13.

Eligibility for compensation

14.

Making a claim

15.

Time limit for making a claim

16.

Conditions of compensation

17.

Limitations to compensation

18.

Revocation of L.N. 105/2004

THE INSURANCE (INSURANCE APPEALS TRIBUNAL) RULES

ARRANGEMENT OF RULES

1.

Citation

2.

Interpretation

3.

Saving of the inherent Power of the Tribunal

4.

Establishment of the Tribunal and Tenure of Office

5.

Powers of the Chairperson

6.

Tribunal Secretary

7.

Presentation of appeals

8.

Fees

9.

Forms

10.

Memorandum of Appeal

11.

Memorandum to be accompanied by appellant’s statement and fees

12.

Service of Memorandum on Commissioner

13.

Commissioner’s dealing with Memorandum

14.

Notice to Chairperson of Memorandum and Hearing Notice

15.

Interim relief and interlocutory application

16.

Amendment of Memorandum of Appeal

17.

Procedure at hearing of appeal

18.

Admissibility of documents

19.

Setting aside judgment, order or award

20.

Withdrawal of appeal or opposition

21.

Costs

22.

Appeal to the High Court

23.

Registers

24.

Registries

25.

Savings Provisions

26.

Revocation of L.N. 542/1988

SCHEDULES

SCHEDULE [r. 8] —

FILING FEES

THE INSURANCE (CAPITAL ADEQUACY) GUIDELINES

ARRANGEMENT OF PARAGRAPHS

1.

Citation

2.

Interpretation

3.

Objective and principles of the guidelines

4.

Responsibility

5.

Capital adequacy

6.

Capital required

7.

Capital available

8.

Tiers of capital

9.

Inadmissible assets

10.

Investment concentration limits

11.

Valuation

12.

Determination of risk-based capital

13.

Capital required for insurance risk

14.

Capital required for market risk

15.

Capital required for credit risk

16.

Capital required for operational risk

17.

Remedial measures

18.

Sanctions

SCHEDULES

APPENDICES [para. 13(10), 13(12)] —

INSURANCE RISK FACTOR - LIFE INSURANCE COMPANIES

APPENDIX 1
APPENDIX 2 [para. 13(3)] —

INSURANCE RISK FACTORS — GENERAL INSURANCE COMPANIES AND LIFE INSURANCE COMPANIES TRANSACTING GROUP LIFE AND GROUP CREDIT BUSINESS

APPENDIX 3 [para. 15(2)] —

CREDIT RISK- INSURANCE AND REINSURANCE COMPANIES CAPITAL CHARGES

APPENDIX 4 —

MARKET RISK- INSURANCE AND REINSURANCE COMPANIES CAPITAL CHARGES

THE INSURANCE (VALUATION OF TECHNICAL PROVISIONS FOR GENERAL INSURANCE BUSINESS) GUIDELINES

ARRANGEMENT OF PARAGRAPHS

1.

Citation

2.

Interpretation

3.

Key requirements

4.

Valuation of premium reserves

5.

Valuation of claim reserves

6.

Reporting on reserves

7.

Remedial measures

8.

Administrative sanctions

SCHEDULES

APPENDIX —

STANDARD DEVELOPMENT METHOD FACTORS

THE INSURANCE (VALUATION OF TECHNICAL PROVISIONS FOR LIFE INSURANCE BUSINESS) GUIDELINES

ARRANGEMENT OF PARAGRAPHS

1.

Citation

2.

Interpretation

3.

Key requirements

4.

Valuation methodology

5.

Technical provisions

6.

Best estimate liability

7.

Group life business

8.

Unit-linked contracts

9.

Discretionary participation or with-profit contracts

10.

Options and guarantees embedded in contracts

11.

Economic assumptions

12.

Risk margin

13.

Reporting on technical provisions

14.

Remedial measures

15.

Administrative sanctions

SCHEDULES

APPENDIX 1 [r. 6] —

GUIDANCE NOTE ON BEST ESTIMATE ASSUMPTIONS

APPENDIX 2 [r. 12(5)] —

RISK MARGINS SCHEDULE

THE INSURANCE (INVESTMENTS MANAGEMENT) GUIDELINES

ARRANGEMENT OF PARAGRAPHS

1.

Citation

2.

Interpretation

3.

Objectives

4.

Governance structures

5.

Responsibility of the Board of Directors

6.

Responsibility of senior management

7.

Responsibility of the risk management function

8.

Responsibility of audit function

9.

Internal controls

10.

Investment manager

11.

Management of investments

12.

Investment policy

13.

Asset-liability management

14.

Investment procedures

15.

Concentration limits

16.

Intra-group management

17.

Monitoring and control of investments

18.

Scenario analysis and stress-testing

19.

Enforcement

20.

Remedial measures

21.

Administrative sanctions

INSURANCE (BANCASSURANCE) REGULATIONS, 2020

ARRANGEMENT OF REGULATIONS

1.

Citation

2.

Interpretation

3.

Scope of the regulations

4.

Objective of the regulations

5.

Application for bancassurance business

6.

Registration requirements

7.

Market conduct by bancassurance intermediaries

8.

Insurance products to be in the name of the underwriter

9.

Debiting of client accounts

10.

Role of bancassurance intermediaries

11.

Distribution of products

12.

Confidentiality of information

13.

Complaints redress mechanism

14.

Reporting requirements

15.

Technical Staff

16.

Qualifications of principal officer

17.

Governance of a bancassurance intermediary

18.

Reporting by principal officers

19.

Disqualification or cancellation of registration

20.

Penalty for violation

21.

Transitional matters

SCHEDULES

FIRST SCHEDULE [r. 5(e)] —

FORM OF GUARANTEE

SECOND SCHEDULE [r. 14(1)] —

STATEMENT OF BUSINESS OF A BANCASSURANCE INTERMEDIARY

THE INSURANCE (ANTI-MONEY LAUNDERING AND COMBATING FINANCING OF TERRORISM) GUIDELINES

ARRANGEMENT OF PARAGRAPHS

1.

Citation

2.

Interpretation

3.

Object of the guidelines

4.

Application of the guidelines

5.

General requirements for regulated entities

6.

Responsibilities of the board of a regulated entity

7.

Responsibilities of the management of a regulated entity

8.

Money laundering reporting officers

9.

Functions of the money laundering officer

10.

Access to information

11.

Independent audits

12.

Anti-money laundering and combating financing of terrorism programme

13.

Elements of anti-money laundering and combating financing of terrorism

14.

Key operational controls of an anti-money laundering and combating financing of terrorism policy

15.

Compliance policy statement

16.

Content of compliance policy statement

17.

Compliance policy

18.

Staff vetting

19.

Training

20.

Risk assessment

21.

Customer due diligence

22.

Simplified customer due diligence

23.

Enhanced customer due diligence

24.

Information on natural person

25.

Information on legal persons

26.

Information on partnerships

27.

Information on trusts

28.

Ascertainment of ultimate beneficiaries

29.

Reliance on intermediarie customer due diligence

30.

New technologies and non-face-to-face transactions

31.

Politically exposed persons

32.

Higher risk customers

33.

Beneficiaries of life insurance contracts

34.

Record-keeping

35.

Audit trails

36.

Ongoing monitoring

37.

Management information system

38.

Suspicious transactions

39.

Suspicious transactions reporting

40.

Triggers for submission of suspicious transactions reports

41.

Reporting on cash transactions

42.

Maintenance of database of names

43.

Compliance

44.

Non-compliance

SCHEDULES

SCHEDULE [para. 38(2)] —

INDICATORS OF SUSPICIOUS TRANSACTIONS

THE INSURANCE (GROUP-WIDE SUPERVISION) REGULATIONS

ARRANGEMENT OF REGULATIONS

1.

Citation

2.

Interpretation

3.

Objective of the regulations

4.

Scope of the regulations

5.

Achievement of objectives

6.

Compliance by group

7.

Delegation by board

8.

Delegation by senior management

9.

Governance arrangements

10.

Governance in wider groups

11.

Information flows

12.

Distinct operational framework

13.

Governance framework

14.

Resources

15.

Responsibility for management

16.

Corporate governance

17.

Adherence to corporate governance requirements

18.

Remuneration policy

19.

Intra-group conflicts

20.

Suitability of board and management

21.

Periodic assessment of suitability

22.

Responsibilities of the parent company board

23.

Intra-group transactions

24.

Group shared services

25.

Capital management policies

26.

Capital management

27.

Risk management framework

28.

Responsibility for risk management

29.

Risk reporting

THE INSURANCE (MICROINSURANCE) REGULATIONS

ARRANGEMENT OF REGULATIONS

1.

Citation

2.

Interpretation

3.

Scope of the regulations

4.

Grace periods

5.

Microinsurance criteria

6.

Approval of microinsurance products

7.

Revocation of approval of microinsurance products

8.

Change of product features

9.

Group microinsurance policies

10.

Marketing materials

11.

Policy summaries

12.

Policy documents

13.

Provision of policy documents and receipts

14.

Claims payments

15.

Registration requirements

16.

Application for registration

17.

Complaints

18.

Appointment of microinsurance intermediaries.

19.

Register of microinsurance intermediaries

20.

Training obligations

21.

Commissions and fees

22.

Reporting requirements

23.

Enforcement

24.

Transition

THE INSURANCE (SUITABILITY OF KEY PERSONS) REGULATIONS

ARRANGEMENT OF REGULATIONS

1.

Citation

2.

Interpretation

3.

Purpose and application

4.

Suitability of key persons

5.

Notification of changes etc.

6.

Approval of appointment of key person

7.

Enforcement

SCHEDULES

SCHEDULE [r. 6(2)] —

FIT AND PROPER ASSESSMENT FORM