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

Consolidation of the following Regulations ongoing : L.N. 82/2019, L.N. 83/2019, L.N. 90/2019 L.N. 91/2019, L.N. 93/2019)

INSURANCE REGULATIONS, 1986

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 and renewal of registration.

6.

Registration fees.

7.

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

PART III – ADMITTED ASSETS AND ADMITTED LIABILITIES

8.

Admitted assets and admitted liabilities.

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

9.

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

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.

Minimum 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 reinsurance cessions.

PART X – INTERMEDIARIES, CLAIMS SETTLING AGENTS, INSURANCE SURVEYORS, LOSS ADJUSTERS, LOSS ASSESSORS 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.

Manner of payment of fees.

51.

Specified investments.

SCHEDULES

FIRST SCHEDULE

SECOND SCHEDULE –

DETERMINATION OF ADMITTED ASSETS AND ADMITTED LIABILITIES FOR SOLVENCY PURPOSES

THIRD SCHEDULE

FOURTH SCHEDULE

FIFTH SCHEDULE –

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

SIXTH SCHEDULE –

REGULATIONS RELATING TO ACTUARIAL VALUATION OF LIABILITIES

SEVENTH SCHEDULE –

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

EIGHTH SCHEDULE –

ACTUARY’S CERTIFICATE

NINTH SCHEDULE –

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

TENTH SCHEDULE

ELEVENTH SCHEDULE –

MAXIMUM BROKERAGE, COMMISSION OR OTHER INTERMEDIARY

TWELFTH SCHEDULE –

RULES FOR ASCERTAINING THE AMOUNT OF A PAID UP POLICY

THIRTEENTH SCHEDULE –

RULES FOR ASCERTAINING THE SURRENDER VALUE OF A POLICY

FOURTEENTH SCHEDULE

FIFTEENTH SCHEDULE –

MANDATORY REINSURANCE CESSIONS

SIXTEENTH SCHEDULE

SEVENTEENTH SCHEDULE –

PROFESSIONAL INDEMNITY POLICY

EIGHTEENTH SCHEDULE

NINTEENTH SCHEDULE –

FORMS

TWENTIETH SCHEDULE –

FORMS

TWENTY-FIRST SCHEDULE –

SUMMARY OF CLAIMS

TWENTY-SECOND SCHEDULE –

FORMS

TWENTY-THIRD SCHEDULE –

MONTHLY INSURANCE TRAINING LEVY RETURN

INSURANCE REGULATIONS, 1986

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 and renewal of registration.

6.

Registration fees.

7.

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

PART III – ADMITTED ASSETS AND ADMITTED LIABILITIES

8.

Admitted assets and admitted liabilities.

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

9.

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

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.

Minimum 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 reinsurance cessions.

PART X – INTERMEDIARIES, CLAIMS SETTLING AGENTS, INSURANCE SURVEYORS, LOSS ADJUSTERS, LOSS ASSESSORS 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.

51.

Premium tax monthly return.

52.

Premium tax annual return.

53.

Reinsurance premium tax return.

SCHEDULES

FIRST SCHEDULE

SECOND SCHEDULE –

DETERMINATION OF ADMITTED ASSETS AND ADMITTED LIABILITIES FOR SOLVENCY PURPOSES

THIRD SCHEDULE

FOURTH SCHEDULE

FIFTH SCHEDULE –

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

SIXTH SCHEDULE –

REGULATIONS RELATING TO ACTUARIAL VALUATION OF LIABILITIES

SEVENTH SCHEDULE –

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

EIGHTH SCHEDULE –

ACTUARY’S CERTIFICATE

NINTH SCHEDULE –

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

TENTH SCHEDULE

ELEVENTH SCHEDULE –

MAXIMUM BROKERAGE, COMMISSION OR OTHER INTERMEDIARY

TWELFTH SCHEDULE –

RULES FOR ASCERTAINING THE AMOUNT OF A PAID UP POLICY

THIRTEENTH SCHEDULE –

RULES FOR ASCERTAINING THE SURRENDER VALUE OF A POLICY

FOURTEENTH SCHEDULE

FIFTEENTH SCHEDULE –

MANDATORY REINSURANCE CESSIONS

SIXTEENTH SCHEDULE

SEVENTEENTH SCHEDULE –

PROFESSIONAL INDEMNITY POLICY

EIGHTEENTH SCHEDULE

NINTEENTH SCHEDULE –

FORMS

TWENTIETH SCHEDULE –

FORMS

TWENTY-FIRST SCHEDULE –

SUMMARY OF CLAIMS

TWENTY-SECOND SCHEDULE –

FORMS

TWENTY-THIRD SCHEDULE –

MONTHLY INSURANCE TRAINING LEVY RETURN

TWENTY-FOURTH SCHEDULE –

ANNUAL PREMIUM TAX RETURN

TWENTY-FIFTH SCHEDULE –

REINSURANCE PREMIUM TAX RETURN

INSURANCE REGULATIONS, 1986

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 and renewal of registration.

6.

Registration fees.

7.

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

PART III – ADMITTED ASSETS AND ADMITTED LIABILITIES

8.

Admitted assets and admitted liabilities.

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

9.

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

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.

Minimum 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 reinsurance cessions.

PART X – INTERMEDIARIES, CLAIMS SETTLING AGENTS, INSURANCE SURVEYORS, LOSS ADJUSTERS, LOSS ASSESSORS 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.

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 re-insurance premium tax return.

SCHEDULES

FIRST SCHEDULE

SECOND SCHEDULE –

DETERMINATION OF ADMITTED ASSETS AND ADMITTED LIABILITIES FOR SOLVENCY PURPOSES

THIRD SCHEDULE

FOURTH SCHEDULE

FIFTH SCHEDULE –

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

SIXTH SCHEDULE –

REGULATIONS RELATING TO ACTUARIAL VALUATION OF LIABILITIES

SEVENTH SCHEDULE –

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

EIGHTH SCHEDULE –

ACTUARY’S CERTIFICATE

NINTH SCHEDULE –

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

TENTH SCHEDULE

ELEVENTH SCHEDULE –

MAXIMUM BROKERAGE, COMMISSION OR OTHER INTERMEDIARY

TWELFTH SCHEDULE –

RULES FOR ASCERTAINING THE AMOUNT OF A PAID UP POLICY

THIRTEENTH SCHEDULE –

RULES FOR ASCERTAINING THE SURRENDER VALUE OF A POLICY

FOURTEENTH SCHEDULE

FIFTEENTH SCHEDULE –

MANDATORY REINSURANCE CESSIONS

SIXTEENTH SCHEDULE

SEVENTEENTH SCHEDULE –

PROFESSIONAL INDEMNITY POLICY

EIGHTEENTH SCHEDULE

NINTEENTH SCHEDULE –

FORMS

TWENTIETH SCHEDULE –

FORMS

TWENTY-FIRST SCHEDULE –

SUMMARY OF CLAIMS

TWENTY-SECOND SCHEDULE –

FORMS

TWENTY-THIRD SCHEDULE –

MONTHLY INSURANCE TRAINING LEVY RETURN

TWENTY-FOURTH SCHEDULE –

MONTHLY PREMIUM TAX RETURN

TWENTY-FIFTH SCHEDULE –

ANNUAL PREMIUM TAX RETURN

TWENTY-SIXTH SCHEDULE –

[EDITORIAL NOTE: THIS FORM IS MISSING FROM THE ORIGINAL GOVERNMENT GAZETTE.]

TWENTY-SEVENTH SCHEDULE –

MONTHLY RE-INSURANCE PREMIUM TAX RETURN

TWENTY-EIGHTH SCHEDULE –

ANNUAL RE-INSURANCE PREMIUM TAX RETURN

INSURANCE REGULATIONS, 1986

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 and renewal of registration.

6.

Registration fees.

7.

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

PART III – ADMITTED ASSETS AND ADMITTED LIABILITIES

8.

Admitted assets and admitted liabilities.

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

9.

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

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.

Minimum 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 reinsurance cessions.

PART X – INTERMEDIARIES, CLAIMS SETTLING AGENTS, INSURANCE SURVEYORS, LOSS ADJUSTERS, LOSS ASSESSORS 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.

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 re-insurance premium tax return.

SCHEDULES

FIRST SCHEDULE

SECOND SCHEDULE –

DETERMINATION OF ADMITTED ASSETS AND ADMITTED LIABILITIES FOR SOLVENCY PURPOSES

THIRD SCHEDULE

FOURTH SCHEDULE

FIFTH SCHEDULE –

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

SIXTH SCHEDULE –

REGULATIONS RELATING TO ACTUARIAL VALUATION OF LIABILITIES

SEVENTH SCHEDULE –

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

EIGHTH SCHEDULE –

ACTUARY’S CERTIFICATE

NINTH SCHEDULE –

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

TENTH SCHEDULE

ELEVENTH SCHEDULE –

MAXIMUM BROKERAGE, COMMISSION OR OTHER INTERMEDIARY

TWELFTH SCHEDULE –

RULES FOR ASCERTAINING THE AMOUNT OF A PAID UP POLICY

THIRTEENTH SCHEDULE –

RULES FOR ASCERTAINING THE SURRENDER VALUE OF A POLICY

FOURTEENTH SCHEDULE

FIFTEENTH SCHEDULE –

MANDATORY REINSURANCE CESSIONS

SIXTEENTH SCHEDULE

SEVENTEENTH SCHEDULE –

PROFESSIONAL INDEMNITY POLICY

EIGHTEENTH SCHEDULE

NINTEENTH SCHEDULE –

FORMS

TWENTIETH SCHEDULE –

FORMS

TWENTY-FIRST SCHEDULE –

SUMMARY OF CLAIMS

TWENTY-SECOND SCHEDULE –

FORMS

TWENTY-THIRD SCHEDULE –

MONTHLY INSURANCE TRAINING LEVY RETURN

TWENTY-FOURTH SCHEDULE –

MONTHLY PREMIUM TAX RETURN

TWENTY-FIFTH SCHEDULE –

ANNUAL PREMIUM TAX RETURN

TWENTY-SIXTH SCHEDULE –

[EDITORIAL NOTE: THIS FORM IS MISSING FROM THE ORIGINAL GOVERNMENT GAZETTE.]

TWENTY-SEVENTH SCHEDULE –

QUARTERLY RE-INSURANCE PREMIUM TAX RETURN

TWENTY-EIGHTH SCHEDULE –

ANNUAL RE-INSURANCE PREMIUM TAX RETURN

INSURANCE REGULATIONS, 1986

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 and renewal of registration.

6.

Registration fees.

7.

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

PART III – ADMITTED ASSETS AND ADMITTED LIABILITIES

8.

Admitted assets and admitted liabilities.

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

9.

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

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.

Minimum 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 reinsurance cessions.

PART X – INTERMEDIARIES, CLAIMS SETTLING AGENTS, INSURANCE SURVEYORS, LOSS ADJUSTERS, LOSS ASSESSORS 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.

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.

57.

58.

SCHEDULES

FIRST SCHEDULE

SECOND SCHEDULE –

DETERMINATION OF ADMITTED ASSETS AND ADMITTED LIABILITIES FOR SOLVENCY PURPOSES

THIRD SCHEDULE

FOURTH SCHEDULE

FIFTH SCHEDULE –

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

SIXTH SCHEDULE –

REGULATIONS RELATING TO ACTUARIAL VALUATION OF LIABILITIES

SEVENTH SCHEDULE –

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

EIGHTH SCHEDULE –

ACTUARY’S CERTIFICATE

NINTH SCHEDULE –

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

TENTH SCHEDULE

ELEVENTH SCHEDULE –

MAXIMUM BROKERAGE, COMMISSION OR OTHER INTERMEDIARY

TWELFTH SCHEDULE –

RULES FOR ASCERTAINING THE AMOUNT OF A PAID UP POLICY

THIRTEENTH SCHEDULE –

RULES FOR ASCERTAINING THE SURRENDER VALUE OF A POLICY

FOURTEENTH SCHEDULE

FIFTEENTH SCHEDULE –

MANDATORY REINSURANCE CESSIONS

SIXTEENTH SCHEDULE

SEVENTEENTH SCHEDULE –

PROFESSIONAL INDEMNITY POLICY

EIGHTEENTH SCHEDULE

NINTEENTH SCHEDULE –

FORMS

TWENTIETH SCHEDULE –

FORMS

TWENTY-FIRST SCHEDULE –

SUMMARY OF CLAIMS

TWENTY-SECOND SCHEDULE –

FORMS

TWENTY-THIRD SCHEDULE –

MONTHLY INSURANCE TRAINING LEVY RETURN

TWENTY-FOURTH SCHEDULE –

MONTHLY PREMIUM TAX RETURN

TWENTY-FIFTH SCHEDULE –

ANNUAL PREMIUM TAX RETURN

TWENTY-SIXTH SCHEDULE –

[EDITORIAL NOTE: THIS FORM IS MISSING FROM THE ORIGINAL GOVERNMENT GAZETTE.]

TWENTY-SEVENTH SCHEDULE –

QUARTERLY RE-INSURANCE PREMIUM TAX RETURN

TWENTY-EIGHTH SCHEDULE –

ANNUAL RE-INSURANCE PREMIUM TAX RETURN

TWENTY-NINTH SCHEDULE –

ANNUAL TRAINING LEVY RETURN

INSURANCE REGULATIONS, 1986

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 and renewal of registration.

6.

Registration 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.

Admitted assets and admitted liabilities.

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

9.

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

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.

Minimum 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 reinsurance cessions.

PART X – INTERMEDIARIES, CLAIMS SETTLING AGENTS, INSURANCE SURVEYORS, LOSS ADJUSTERS, LOSS ASSESSORS 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.

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.

57.

58.

SCHEDULES

FIRST SCHEDULE

SECOND SCHEDULE –

DETERMINATION OF ADMITTED ASSETS AND ADMITTED LIABILITIES FOR SOLVENCY PURPOSES

THIRD SCHEDULE

FOURTH SCHEDULE

FIFTH SCHEDULE –

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

SIXTH SCHEDULE –

REGULATIONS RELATING TO ACTUARIAL VALUATION OF LIABILITIES

SEVENTH SCHEDULE –

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

EIGHTH SCHEDULE –

ACTUARY’S CERTIFICATE

NINTH SCHEDULE –

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

TENTH SCHEDULE

ELEVENTH SCHEDULE –

MAXIMUM BROKERAGE, COMMISSION OR OTHER INTERMEDIARY

TWELFTH SCHEDULE –

RULES FOR ASCERTAINING THE AMOUNT OF A PAID UP POLICY

THIRTEENTH SCHEDULE –

RULES FOR ASCERTAINING THE SURRENDER VALUE OF A POLICY

FOURTEENTH SCHEDULE

FIFTEENTH SCHEDULE –

MANDATORY REINSURANCE CESSIONS

SIXTEENTH SCHEDULE

SEVENTEENTH SCHEDULE –

PROFESSIONAL INDEMNITY POLICY

EIGHTEENTH SCHEDULE

NINTEENTH SCHEDULE –

FORMS

TWENTIETH SCHEDULE –

FORMS

TWENTY-FIRST SCHEDULE –

SUMMARY OF CLAIMS

TWENTY-SECOND SCHEDULE –

FORMS

TWENTY-THIRD SCHEDULE –

MONTHLY INSURANCE TRAINING LEVY RETURN

TWENTY-FOURTH SCHEDULE –

MONTHLY PREMIUM TAX RETURN

TWENTY-FIFTH SCHEDULE –

ANNUAL PREMIUM TAX RETURN

TWENTY-SIXTH SCHEDULE –

[EDITORIAL NOTE: THIS FORM IS MISSING FROM THE ORIGINAL GOVERNMENT GAZETTE.]

TWENTY-SEVENTH SCHEDULE –

QUARTERLY RE-INSURANCE PREMIUM TAX RETURN

TWENTY-EIGHTH SCHEDULE –

ANNUAL RE-INSURANCE PREMIUM TAX RETURN

TWENTY-NINTH SCHEDULE –

ANNUAL TRAINING LEVY RETURN

INSURANCE REGULATIONS, 1986

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 and renewal of registration.

6.

Registration 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.

Admitted assets and admitted liabilities.

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

9.

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

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.

Minimum 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 reinsurance 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.

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.

57.

58.

SCHEDULES

FIRST SCHEDULE

SECOND SCHEDULE –

DETERMINATION OF ADMITTED ASSETS AND ADMITTED LIABILITIES FOR SOLVENCY PURPOSES

THIRD SCHEDULE

FOURTH SCHEDULE

FIFTH SCHEDULE –

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

SIXTH SCHEDULE –

REGULATIONS RELATING TO ACTUARIAL VALUATION OF LIABILITIES

SEVENTH SCHEDULE –

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

EIGHTH SCHEDULE –

ACTUARY’S CERTIFICATE

NINTH SCHEDULE –

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

TENTH SCHEDULE

ELEVENTH SCHEDULE –

MAXIMUM BROKERAGE, COMMISSION OR OTHER INTERMEDIARY

TWELFTH SCHEDULE –

RULES FOR ASCERTAINING THE AMOUNT OF A PAID UP POLICY

THIRTEENTH SCHEDULE –

RULES FOR ASCERTAINING THE SURRENDER VALUE OF A POLICY

FOURTEENTH SCHEDULE

FIFTEENTH SCHEDULE –

MANDATORY REINSURANCE CESSIONS

SIXTEENTH SCHEDULE

SEVENTEENTH SCHEDULE –

PROFESSIONAL INDEMNITY POLICY

EIGHTEENTH SCHEDULE

NINTEENTH SCHEDULE –

FORMS

TWENTIETH SCHEDULE –

FORMS

TWENTY-FIRST SCHEDULE –

SUMMARY OF CLAIMS

TWENTY-SECOND SCHEDULE –

FORMS

TWENTY-THIRD SCHEDULE –

MONTHLY INSURANCE TRAINING LEVY RETURN

TWENTY-FOURTH SCHEDULE –

MONTHLY PREMIUM TAX RETURN

TWENTY-FIFTH SCHEDULE –

ANNUAL PREMIUM TAX RETURN

TWENTY-SIXTH SCHEDULE –

[EDITORIAL NOTE: THIS FORM IS MISSING FROM THE ORIGINAL GOVERNMENT GAZETTE.]

TWENTY-SEVENTH SCHEDULE –

QUARTERLY RE-INSURANCE PREMIUM TAX RETURN

TWENTY-EIGHTH SCHEDULE –

ANNUAL RE-INSURANCE PREMIUM TAX RETURN

TWENTY-NINTH SCHEDULE –

ANNUAL TRAINING LEVY RETURN

INSURANCE REGULATIONS, 1986

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 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.

Admitted assets and admitted liabilities.

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

9.

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

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 reinsurance 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.

Specified investments.

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 —

SECOND SCHEDULE —

DETERMINATION OF ADMITTED ASSETS AND ADMITTED LIABILITIES FOR SOLVENCY PURPOSES

THIRD SCHEDULE —

FOURTH SCHEDULE —

FIFTH SCHEDULE —

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

SIXTH SCHEDULE —

REGULATIONS RELATING TO ACTUARIAL VALUATION OF LIABILITIES

SEVENTH SCHEDULE —

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

EIGHTH SCHEDULE —

ACTUARY’S CERTIFICATE

NINTH SCHEDULE —

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

TENTH SCHEDULE —

ELEVENTH SCHEDULE —

MAXIMUM BROKERAGE, COMMISSION OR OTHER INTERMEDIARY

TWELFTH SCHEDULE —

RULES FOR ASCERTAINING THE AMOUNT OF A PAID UP POLICY

THIRTEENTH SCHEDULE —

RULES FOR ASCERTAINING THE SURRENDER VALUE OF A POLICY

FOURTEENTH SCHEDULE —

FIFTEENTH SCHEDULE —

MANDATORY REINSURANCE CESSIONS

SIXTEENTH SCHEDULE —

SEVENTEENTH SCHEDULE —

PROFESSIONAL INDEMNITY POLICY

EIGHTEENTH SCHEDULE —

NINETEENTH SCHEDULE —

FORMS

TWENTIETH SCHEDULE —

FORMS

TWENTY-FIRST SCHEDULE —

SUMMARY OF CLAIMS

TWENTY-SECOND SCHEDULE —

FORMS

TWENTY-THIRD SCHEDULE —

MONTHLY INSURANCE TRAINING LEVY RETURN

TWENTY-FOURTH SCHEDULE —

MONTHLY PREMIUM TAX RETURN

TWENTY-FIFTH SCHEDULE —

ANNUAL PREMIUM TAX RETURN

TWENTY-SIXTH SCHEDULE —

[EDITORIAL NOTE: THIS FORM IS MISSING FROM THE ORIGINAL GOVERNMENT GAZETTE.]

TWENTY-SEVENTH SCHEDULE —

QUARTERLY RE-INSURANCE PREMIUM TAX RETURN

TWENTY-EIGHTH SCHEDULE —

ANNUAL RE-INSURANCE PREMIUM TAX RETURN

TWENTY-NINTH SCHEDULE —

ANNUAL TRAINING LEVY RETURN

INSURANCE REGULATIONS, 1986
[L.N. 312/1986, Corr. No. 43/1987, L.N. 52/1987, L.N. 146/1987, L.N. 349/1987, L.N. 542/1988, L.N. 180/1992, L.N. 124/1994, L.N. 189/1994, L.N. 372/1995, L.N. 87/1996, L.N. 169/1998, L.N. 75/1999, L.N. 172/1999, L.N. 108/2002, L.N. 91/2003, L.N. 40/2004, L.N. 65/2006, L.N. 99/2006, L.N. 2/2007, L.N. 135/2007, L.N. 97/2009, L.N. 85/2010, L.N. 154/2010, L.N. 51/2011, L.N. 57/2012, , L.N. 178/2014, L.N. 104/2015, L.N. 108/2016, L.N. 51/2017, L.N. 275/2017, L.N. 93/2019.]

REGULATIONS UNDER SECTION 180

PART I – PRELIMINARY
1.
Citation

These Regulations may be cited as the Insurance Regulations, 1986.

2.
Applicability

These Regulations shall apply to all members of the insurance industry, mutatis mutandis, unless otherwise specified.

3.
Interpretation
(1)

In these Regulations—

“Kenya citizen” means an individual, being a natural person, who is a citizen of Kenya;

“Kenya company” means a company, incorporated under the Companies Act (Cap. 486) whose shares are wholly owned by Kenya citizens;

“Kenya partnership” means a partnership whose partners are all Kenya citizens.

(2)

For the purposes of these Regulations and the management of the insurance industry the classes and sub-classes of insurance business shall be serialized according to the serial numbers specified in these Regulations.

4.
Excluded business

For the purposes of the definition of “insurance business” in section 2 of the Act the following are declared not to be insurance businesses for the purposes of the Act—

(a)

business undertaken by a person being a carrier, carrier’s agent, forwarding agent, wharfinger, warehouse man or shipping agent, relating only to his liability in respect of goods belonging to another person and in his possession or under his possession or under his control for the purpose of carriage, storage or sale of those goods;

(b)

business undertaken by a person, being an inn-keeper or lodging, house- keeper relating only to his liability in respect of goods belonging to another person and in the possession or under the control of a guest at the inn or lodging house of which the first-mentioned person is the inn-keeper or lodging house-keeper for safe custody.

PART II – REGISTRATION OF INSURERS
7.
Statements to be submitted under section 30(k) of the Act

For the purpose of section 30(k) of the Act, every insurer shall, at the time of first making application for registration under one or more of the classes of insurance business prescribed under regulations 9 and 10, lodge with the Commissioner the following statements:

(a)

a photocopy of the certificate of incorporation;

(b)

in the case of an insurer who has not transacted insurance business prior to making the application or where authorization is sought to transact a class of business not transacted before, a copy of the feasibility study report carried out in this regard, showing estimates of premium, expenses and claims for each of the first three financial years following the year in which the application is made, separately on a year by year basis and separately for each such year on both optimistic and pessimistic bases and such feasibility study report shall contain the following information—

(i)
(ii) a forecast balance sheet;
(iii) estimates relating to the financial resources to cover underwriting liabilities and the margin of solvency;
(iv) in the case of long term insurance business, the number of contracts, and the total sums assured or amounts of annuity per annum expected to be issued;
(c)

the sources of business (for example, insurance brokers, agents, own employees or direct selling) and the approximate per centage expected from each source;

(d)

a summary (that is to say a treaty slip) of reinsurance treaties arranged for each class of business containing all the terms and conditions;

(e)

copies or drafts of any agreements with persons (other than employees of the insurer) who will manage the business of the insurer;

(f)

copies or drafts of any standard agreements which the insurer may have with brokers or agents;

(g)

in the case of long term insurance business, a certificate by an actuary, supported by calculations or projections by the actuary, that he considers the financing of the insurer to be sufficient to cover both technical reserves and the required margin of solvency during the first three financial years following the financial year in which application is made;

(h)

in the case of an insurer who has not transacted insurance business prior to making the application or where authorization is sought to transact a class of business not transacted before, the estimated costs of installing the administrative services and organization for securing business, and the financial resources intended to cover those costs;

(i)

accounts, statements and reports laid before the shareholders at the last three annual general meetings or, if less than three annual general meetings have been held, the accounts, statements and reports laid before the annual general meetings which have been held and the minutes of the annual general meetings shall also be lodged;

(j)

in the case of an insurer who was carrying on or transacting long term insurance business immediately prior to the date of commencement of the Act, copies of the last three valuation reports of the actuary.

7A.
Deposits for Insurers Registration

For the purposes of section 32 of the Act, deposits required to be kept with the Central Bank of Kenya shall be under lien in favour of the Insurance Regulatory Authority.

[L.N. 97/2009, r. 2.]

PART III – ADMITTED ASSETS AND ADMITTED LIABILITIES
PART IV – ACCOUNTS, BALANCE SHEETS, AUDIT AND ACTUARIAL INVESTIGATIONS
10.
Classes of general insurance business in respect of which separate accounts to be maintained

An insurer carrying on general insurance business shall maintain separate accounts in respect of the classes of business listed in Part A of the Third Schedule and defined for the purposes of these Regulations in Part B of that Schedule.

12.
Actuarial abstracts

For the purposes of section 57(1) of the Act, the actuarial abstracts and statements in respect of long term insurance business shall be prepared in accordance with the provisions of the Fourth Schedule.

13.
Statements of long term insurance business

For the purposes of section 57(3) of the Act, the statement required of an insurer following an investigation under section 57(1) of the Act shall be prepared in accordance with the provisions of the Fifth Schedule.

14.
Actuarial valuation of liabilities

For the purposes of section 57(5) of the Act, the value of assets and the amount of liabilities for purposes of an actuarial investigation shall, subject to section 58 of the Act, be determined in accordance with the provisions of the Sixth Schedule.

15.
Prescribed basis

For the purposes of section 58(3) of the Act, the calculation on the prescribed basis of the value of liability of a statutory fund in respect of its policies, shall be according to the provisions of the Seventh Schedule.

[L.N. 108/2016, r. 3.]

16.
Actuary’s certificate

For the purposes of section 58(5)(c) of the Act, an actuary’s certificate shall be in form set out in the Eighth Schedule.

19.
Annual returns: supplementary provisions
(1)

The statements required under regulations 17 and 18 shall be submitted separately in respect of Kenya business and outside Kenya business.

(2)

In case an insurer does not have any information to submit in respect of any of the classes of business under regulations 17 and 18 the statements required shall be submitted indicating that the insurer has no information to submit.

(3)

“Class of business” and “sub-class of business” wherever shown in the statements required to be furnished under regulations 17 and 18 are those specified in regulation 9 in respect of long term insurance business and in Part A of the Third Schedule in respect of general insurance business.

PART V – MANAGEMENT AND EXPENSES
PART VI – POLICY TERMS
23.
Exemption from the provision regarding avoidance of contracts of unlimited amounts

The following categories of contracts shall be exempt from the operation of section 78 of the Act, namely—

(a)

contracts of insurance covering the liability under the Insurance (Motor Vehicles Third Party Risks) Act (Cap. 405);

(b)

contracts of insurance covering the liability of an employer to the employee under common law.

24.
Paid up policies

For the purposes of section 88(1) of the Act, the rules on paid up policies shall be those specified in the Twelfth Schedule.

25.
Surrender values

For the purposes of section 89 of the Act, the surrender value of a policy shall be calculated in accordance with the rules set out in the Thirteenth Schedule.

26.
Payment of interest on overdue premiums

For the purposes of section 90(2) of the Act the prescribed terms shall be terms under which the amount of interest chargeable in respect of an overdue premium would be an amount calculated at a rate of interest not exceeding ten percentum per annum on the overdue premium compounded annually.

27.
Paid up industrial life policies

For the purposes of section 91(4) of the Act the prescribed rules shall be those set out in the Twelfth Schedule.

28.
Certain policies to which sections 88-92 do not apply

In accordance with subsection (2) of section 93 of the Act, it is declared that the provisions of sections 88 to 92 (inclusive) of the Act shall apply in respect of each of the classes of policies specified in this regulation, subject to the modifications declared in the paragraph of this regulation in which that class is specified—

(a)

Family Income Policies and Policies which provide other additional benefits on death within a specified term—

If a policy provides income or other additional life insurance benefits so that the amount payable (exclusive of bonuses) in the event of death within a specified term dating from the commencement of the policy exceeds the amount payable (exclusive of bonuses) in the event of death or survival after the expiry of the specified term (which latter amount is hereinafter referred to as the basic sum insured), the paid up policy to which the policy owner is entitled shall be payable on the same contingencies as the basic sum insured only, and shall not carry such additional benefits.
(b)

Policies which include certain contingent additional benefits—

If a policy includes provision for a benefit payable in an event other than death or survival, or a benefit payable in the event of death by accident or in the event of a specified sickness only (either or both of which benefits are hereinafter referred to as additional benefits), the paid up policy to which the policy owner shall be entitled shall be calculated in accordance with the rules set out in the Twelfth Schedule; and for the purpose of that calculation the additional benefits shall be ignored, and the paid up policy shall not provide any part of the additional benefits.
(c)

Option Policies—

If a policy contains provision for the contract thereunder to be varied at the option of the owner of the policy on a specified date or on the happening of a specified event and the policy owner becomes entitled to a paid up policy before that option has been exercised, the paid up policy to which the policy owner shall be entitled shall be that to which he would be entitled if the policy did not include provision for that optional variation.
(d)

Altered Ordinary Life Policies—

In cases where, since the issue of any ordinary policy, the contract thereunder has been varied at the request of the policy owner in such a manner that either the date upon which the sum insured becomes payable, or the term during which premium payments are to be made, or both, have been altered, the paid up value of the policy shall be calculated according to the rules determined for the purpose by the insurer’s actuary.
(e)

Policies providing for endowment insurance payable in instalments depending on survival with level premiums until the last instalment is paid—

If an endowment insurance policy provides for payment of the sum assured by instalments depending on survival and full sum assured or any unpaid balance at death, premiums being payable at a level rate until the final balance of the sum insured has been paid, the paid up policy value of such a policy shall be calculated according to rule 2 instead of rule 1 of the rules set out in the Twelfth Schedule:

Provided that—

(i) if, according to the practice of the insurer, on the policy being made paid up, the paid up amount is payable in one lumpsum on death or at maturity instead of instalments as provided in the original contract, this factor shall be allowed for in the calculation of the paid up value of the policy under rule 2 of the Twelfth Schedule; and
(ii) for the actual calculation of paid up values of policies referred to in this paragraph an insurer may use, with the approval of the Commissioner, working rules framed by the insurer’s actuary consistent with the provision of this paragraph.
(f)

Paid up Policies—

Where a policy has been rendered paid up (whether by the grant of a paid up policy as required by the Insurance Act or otherwise) and a calculation of the surrender value of the policy is subsequently required to be made, the calculation shall be made according to the rules set out in the Thirteenth Schedule, and the amount of the paid up policy of which the present value is to be found in terms of rule 1 of those rules shall be the actual amount of the paid up policy.

PART VII – NOMINATIONS
29.
Nomination of minors

For the purposes of the proviso to section 111(1) of the Act, the appointment of a person to receive the money secured by a policy in the event of the death of the holder of a policy during the minority of the nominee shall be in the form set out in the Fourteenth Schedule.

30.
Fee for registering, cancelling or changing a nomination

An insurer may charge a policy-holder ten shillings for registering a nomination or its cancellation or change pursuant to section 111(3) of the Act.

PART VIII – CLAIMS ON SMALL LIFE POLICIES
31.
Fee for adjudication

The fee to be charged and collected for an adjudication under section 112 of the Act shall be two percentum of the sum assured of the policy in dispute or one hundred shillings, whichever is the greater amount.

PART IX – MANDATORY REINSURANCE CESSIONS
32.
Mandatory cessions

For the purposes of section 145 of the Act, the proportions of business which shall be ceded to the Corporation by insurers, the manner of cessions and the terms and conditions applicable shall be those set out in the Fifteenth Schedule for the various classes of insurance business specified in that schedule.

33.
Payment of re-insurance cessions

Payment by insurers to the Corporation in respect of re-insurance effected under Part XIV of the Act shall made within the periods of payment specified in the Fifteenth Schedule.

PART X – INTERMEDIARIES, CLAIMS SETTLING AGENTS, INSURANCE SURVEYORS, MEDICAL INSURANCE PROVIDERS, LOSS ADJUSTERS, MOTOR ASSESSORS, INSURANCE INVESTIGATORS AND RISK MANAGERS[L.N. 57/2012, r. 7.]
PART XI – ADVANCE PAYMENT OF PREMIUM
43.
Relaxations

For the purposes of section 156(5) of the Act, in respect of the categories of insurance policies mentioned hereunder the provisions of subsection (1) of section 156 of the Act and regulation 41 shall stand relaxed to the extent and in the manner mentioned in respect of each category of policy, subject to the conditions mentioned therein—

(a)

Policies under Sickness Insurance Scheme

Premiums on such policies may be accepted in instalments provided that the instalment covering a particular period shall be received on or before the date of commencement of the period.
(b)

Declaration Policies

Risks in respect of such policies may be insured if at least the premium calculated on 75 percentum of the sum insured has been received before assumption of the risk.
(c)

Policies issued on the basis of adjustable premiums

Risk in respect of policies issued on the basis of adjustable premium such as workmen’s compensation, cash in transit, and others, may be assumed on receipt of provisional premiums based on a fair estimate.
(d)

Annual insurances connected with aircraft hulls and marine hulls

Facilities for delayed payment of premium on such policies, or the payment of premiums by means of instalments not exceeding four in number and on the basis of an approved clause, may be allowed at the discretion of the insurer, provided that such clause is endorsed on the policy.
(e)

Short period covers in respect of insurance connected with aircraft hulls and marine hulls

Short period covers may be granted on such risks on a held covered basis, subject to the condition that the premium or additional premium in respect of risks assumed in a calendar month shall be paid by the end of the next calendar month.
(f)

Policies issued for long term

In the case of policies issued for long term, such as contract performance bonds or guarantees, contractors’ all risks policies, machinery erection policies and the like, the premium may be staggered as necessary according to custom, over the period of the cover, provided that the first instalment is higher than any other instalment by at least five percentum of the total premiums payable and each instalment is paid in advance, but where the premium is payable by declaration, it may be paid within fifteen days from the effective date of such declaration.

(g)

Schedule and Consequential Loss Policies

In such cases a provisional amount towards the premium shall be collected before the date of inception or renewal of risk on the basis of the previous year’s premium.

(h)

Marine Covers other than hulls

(i) In the case of inland shipments and transit risks, risk may be assumed under open policies in respect of seasonal crops such as tea, on the payment of a provisional premium based on a fair estimate.
(ii) In the case of exports overseas, risk may be assumed subject to the condition that the premium shall be paid within fifteen days from the date of sailing of the overseas vessel;
(iii) In the case of imports, risk may be assumed subject to the condition that the premium shall be paid within fifteen days of the receipt of declaration in Kenya from the insurer’s or insured’s representative overseas:

Provided that the relaxations under subparagraphs (ii) and (iii) shall apply to marine cover notes only and not to marine policies.

(i)

Policies relating to co-insurances

The premiums shall be deemed to have been duly paid if paid on the full insurance to any one of the co-insurers.

(j)

Policies of reinsurance

Risks may be assumed without payment of premium in advance in insurances accepted under automatic re-insurance contracts.

PART XII – GENERAL PROVISIONS
44.
Folio copies

For the purposes of section 177(2) of the Act the fee per page of a document deposited with the Commissioner copied and furnished shall be two shillings.

45.
Inspection fees

The fee for inspection of a register under section 185 of the Act shall be ten shillings.

46.
Fees for duplicate certificates

The fee for a duplicate certificate under section 189(2) of the Act shall be five hundred shillings.

PART XIII – SUPPLEMENTARY PROVISIONS
47.
Application for remittance

An application for the Commissioner’s approval under section 201 of the Act to remit money or securities out of Kenya shall be made in Form No. INS. 201–1 in the Twentieth Schedule and every insurer shall also furnish to the Commissioner a statement in respect of re-insurance business ceded abroad and re-insurance in Form No. INS. 201–2 in the Twentieth Schedule showing, separately business accepted from abroad and also separately in respect of long term insurance business re-insurance and general insurance business re-insurances, the total amount (in equivalent Kenya shillings remitted abroad and the total amount of recoveries (in equivalent Kenya shillings) made from foreign reinsurers and insurers during each of the quarters ending on the last day of March, June, September and December within one month from the close of the quarter to which it relates; and every such statement shall be signed by the principal officer of the insurer.

48.
Claims

For the purposes of section 203 of the Act, an insurer shall furnish the following statements to the Commissioner duly certified by the principal officer—

(i) a statement in Form No. INS. 203–1A in the Twenty-First Schedule in respect of the long term insurance business within three months after the end of the period to which it relates; and
(ii) a statement in Form No. INS. 203–1B in the Twenty-First Schedule in respect of the general insurance business within three months after the end of the period to which it relates; and
(iii) a statement in Form No. INS. 203–2 in the Twenty-First Schedule in respect of the long term and general insurance business within 15 days after the end of the period to which it relates.
50.
Specified investments

A reference in these Regulations to a Schedule shall be a reference to the particular Schedule set out in the “Schedules to the Insurance Regulations, 1986” published by the Government Printer, which Schedules shall be construed as one with these Regulations.

56.
Annual Insurance Training Levy return

For the purposes of section 197E, an insurer carrying on general business in Kenya shall, at the end of each calendar year and not later than the third month following that year, prepare an annual insurance training levy return as set out in the Twenty Ninth Schedule.

[L.N. 135/2007, r. 3.]

FIRST SCHEDULE
FORM INS. 30-1

Sections 30 and 188(2) and Regulations 5 and 48.]

[L.N. 51/2017, r. 3.]

All amounts in Kenya shillings

APPLICATION FOR REGISTRATION OF AN INSURER

Read the Notes in Appendix F to this Form carefully and comply