Regulatory Alerts2003-01-04
Banks Act Circular 13/2003: Section 44 of the Long-term Insurance Act
The Registrar of Banks issued Circular 13/2003 to remind banks, branches of foreign banks, and mutual banks of their compliance obligations under Section 44 of the Long-Term Insurance Act, 1998. The circular mandates that when a bank requires long-term insurance as loan security, the debtor must receive prior written notification and retain the free choice to select the insurer and intermediary. This directive aims to ensure a level playing field by enforcing debtor rights regarding policy selection and utilization in loan agreements.
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