Regulation for the Provision of Annuity by Insurance Companies

2016/R-40:

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Volume: 45 Number: 84 Date: 23 June 2016 (18 Ramadan 1437)

Published by order of the President of the Republic of Maldives

Volume: 45 Number: 84 Government Gazette of Maldives

3

Maldives Monetary Authority
Male, Maldives

Published by order of the President of the Republic of Maldives

Regulation for the Provision of Annuity by Insurance Companies (No. 38 of the Monetary Authority Act, No. 6/81 (Male, 1981) and No. 8/2009 (Pensions Act of Maldives) under the 19th Male (R))

Definitions. 1
In these Regulations, "Regulation for the Provision of Annuity by Insurance Companies" is referred to as "the Regulations".

Commencement. 2
These Regulations shall come into force from the date of publication in the Government Gazette of Maldives.

Application. 3
These Regulations shall apply to all insurance companies licensed by the Maldives Monetary Authority to conduct insurance business in the Maldives, excluding those providing services under the Maldives Pensions Administration Office scheme under the Pensions Act of Maldives (Act No. 8/2009).

Approval. 4
(a) Any insurance company wishing to provide annuity services must submit a written application to the Maldives Monetary Authority, including the following information:
(1) A table listing the capabilities of the insurance company; (2) A detailed description of the annuity services offered; (3) An actuarial report listing the solvency margins of the insurance company and the expected profit margin for policyholders; (4) The annuity policy; (5) Other information required by the Authority; (6) Insurance companies providing services under the Maldives Pensions Administration Office scheme under the Pensions Act of Maldives (Act No. 8/2009) must apply to the Maldives Pensions Administration Office for a change in the administration of the annuity, and the annuity must not be transferred to the Maldives Pensions Administration Office.

Retirement Savings Scheme. 5
(a) Insurance companies providing services under the Maldives Pensions Administration Office scheme must follow the procedures set by the Maldives Pensions Administration Office for the administration of the retirement savings scheme and the provision of annuity services. (b) Under this paragraph (b), insurance companies must follow the procedures set by the Maldives Pensions Administration Office for the retirement savings account and the annuity. (c) The insurance company must pay the annuity to the policyholder or beneficiary within 25 days of the request.

Payment of Annuity. 6
Each insurance company providing annuity services must pay the annuity from the premiums received from the annuity policy, separate from the company's other funds.

Investment of Annuity Funds. 7
(a) Each insurance company providing annuity services must invest the annuity funds received from the premiums in a manner approved by the Authority. (b) Each insurance company providing annuity services must, at all times, hold assets exceeding the total liabilities of the company by at least 20% (twenty percent) of the solvency margin. The liabilities and assets to be included in this calculation shall be determined by the Authority.

Solvency Margin. 8
Each insurance company providing annuity services must keep the records and accounts of the annuity separate from other business activities.

Maintenance of Records. 9
(a) Each insurance company providing annuity services must submit information, documents, or reports to the Authority in the format and at the times specified by the Authority. (b) If the meaning of any expression or word in these Regulations is unclear, the Authority shall provide an interpretation.

Interpretation. 10
(a) "Maldives Monetary Authority" refers to the Maldives Monetary Authority established under the Monetary Authority Act, No. 6/81 (Male, 1981). (b) "Annuity" or "Annuity Service" refers to a policy where the insurance company pays a specified amount to the policyholder or beneficiary for life or for a specific period, or pays a series of payments. (c) "Retirement Savings Account" refers to the retirement savings account as defined in the Pensions Act of Maldives (Act No. 8/2009). (d) "Maldives Pensions Administration Office" refers to the Maldives Pensions Administration Office established under the Pensions Act of Maldives (Act No. 8/2009).

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