Insurance Policy Owners Protection Fund Regulations 2009

[2nd February 2009] Supplement to Ofjicial Gazette 111 S.I. 20 of !2009 INSURANCE ACT, 2008 (Act 11 of2008) Insurance (Policy Owner's Protection Fund) . Regulations, 2009 In exercise of the powers conferred by sections 90(3) and 124 of the Insurance Act, 2008, the Minister of Financemakes the following Regulations - . 0,

1. These Regulations may be cited as the Insurance Citation (Policy Owner's Protection Fund) Regulations. 2009.
2. In these Regulations- "Committee" means the Committee of the Protection Fund; "financial year" means the year in respect ofwhich the accounts of a licensed insurer are 'made up. and where by reason of an alteration of the date on which the financial year of a licensed insurer terminates. the accounts have been made up for a lesser period, that lesser period shall be deemed to be a financial year; "licensed insurer" means an insurer licensed by the Authority. . 3.(1) The Minister shall appoint a Committee to advise the Authority on all matters relllting to the purposes of the Protection Fund as set out in section 88(I) of the Act. and on such matters as may be referred to the Committee by the Authority. (2) The Committee shall consist of not less than 3 or more than 7 members. I nterpretatjon Appointment ofComtnittee

112 Supplement to Official Gazette [2nd February 2009] Secretary Moneys of Protection. Fund (3) The Minister shall appoint one person among the members of the' Committee to be Chairperson of the Committee. . (4) Amemberofthe Conimittee- (a) shall, unless the member earlier vacates office, hold office for a period of 3 years or such shorter period as may be dtermined by the Minister at the time of appointment; and' (b) may be eligible for re-appointment. (5) A member' may resign from office by letter addressed to the Minister. (6) The. Chairperson or in hjs or her absence, any member nominated by the Chairperson shall preside atany meetingsoftheCommittee. . (7) Three members of the Committee shall constitute a quorum. I y . (8) The Committee shall meetat such time and place as the Chairperson may determine. (9) The Committee shall regulate its own proceedings. (10) Members of the Comm ittee may be paid such allowanceastheMinistermaydetermine. . 4.( 1) The Authori~y.maywith the approval of the Minister appoint a personas the secretary of the Committee. . (2) The secretary may be paid such allowance as the Authority may determine in consultation with the Mlrtister. 5.(1). The funds of the Protection Fund consist of- (a) the proceeds of the general business levies and life business levies paid into the Protection Fund under section 89 (2) of the Act: .

[2nd February 2009] Supplement to Official Gazette 113 (b) income from any.investment of the moneys of the Protection Fund under regulation 6; and (c) such other maneys as may be lawfully paid into the Protection Fund. (2) There shall be paid out ofthe Protection Fund- (a) moneys required to be paid under section 88(2) of the Act; . . (b) expenditure incurred by the Authority in performing its functions under section 88 of theAct; . (c) allowances payable to the members and secretaryoftheCommittee. . 6. The Authority may invest such part ofthe moneys of the Protection Fund as appears to the Authority to be surplus to . itsrequirements. 7.(1) There shall be paid into the Protection Fund by every Iicensed insurer carrying on - . . (a) general insurance business, a general business levy; or (b) life insurance business, a lifebusiness levy, at the rate specified in stibregulation (2). (2) The general business levy required to be paid by a licensed insurer shall be equal to 1 per cent of the gross premium income of the insurer liable to the general business levy calculated in accordance with section 89(4) and (6) of the Act.' (3) The life business levy required to be paid by a . Iicensed insurer shall be equal to 1 per cent of the gross premium income ofthe insurer liable to the life business levy I Investments of Protection Fund Levies

114 Supplement to Official Gazette [2nd February 2009] Accounts andAudit calculated in accordance with section 89( 5) and (6) ofthe Act. (4) The general business levy or life business levy shall be due on the 1st day of the financial year of the licensed insurer, immediately. following the year ending before the beginning of that financial year by reference to which the gross premium income iS,calculatedand shall after it becomes due be paid wit~in 30 days ofthe financial year, inwhich it isdue. (5) A licensed insurer who fails to pay the general business, levy or life business levy on or before the date it. becomes payable under subregulation (4) is liable to a surcharge equal to 10 per cent of the amount payable on that date for. each month or part of.the month which has elapsed from that date. :g r 8.( I) The Authority shall cause to be kept proper books of accounts of the Protection Fund and cause to be prepared for each financial year a statement of accounts. (2) The accounts and statement of accounts shall be audited every year by an auditor appointed by the Minister; (3) . TheAuthorityshall on or before 30thApril in each year, senQ to the Minister a copy of the statement prepared under subregulation( I)together with a copy of the report of the auditor on the statement forthe ,immediately preceding year. Made this 30th' day ofJanuary, 2008. DANNY FAURE MINISTER OF FINANCE