Regulatory Alerts1998-08-01
Added · Updated
SIB/19/98 – Sanctions Against Failure to Maintain Renewed Business License and Professional Indemnity Insurance Policy
The National Bank of Ethiopia imposes a fine of Birr 500 on insurance companies and Birr 150 on insurance auxiliaries or actuaries that fail to apply for business license renewal within one month of expiry. Insurance auxiliaries and actuaries must maintain valid Professional Indemnity Insurance Policy at all times, failing which their license is cancelled, though this sanction does not apply to those holding deposits or pledged property with the Bank. These auxiliaries and actuaries are also required to promptly file a copy of the renewed policy with the Bank. These directives became effective on August 1, 1998.
የኢትዮጵያ ብሔራዊ ባንክ NATIONAL BANK OF ETHIOPIA ADDIS ABABA
TELEGRAPHIC ADDRESS NATIONBANK TELEX 21020 CODES-USED PETERSON 3rd & 4th ED. BENTLEYS 2nd PHRASE A. B. C. 6th EDITION
LICENSING AND SUPERVISION OF INSURANCE BUSINESS Directive No. SIB/19/98
Sanctions against Failure to Maintain Renewed Business License and Professional Indemnity Insurance Policy
PLEASE ADDRESS ANY REPLY TO P. O. BOX 5550 ADDIS ABABA
- Issuing Authority
These Directives are issued by the National Bank of Ethiopia (hereinafter called "the Bank") pursuant to the authority vested in it by Article 41 of the monetary and Banking Proclamation No. 83/1994 and Article 42(j) of the Licensing and Supervision of Insurance Business Proclamation No. 86/1994.
- Definition
An "Insurance Auxiliary" shall mean an insurance agent, insurance broker, loss adjuster, loss assessor or insurance surveyor.
- Penalty for Failure to Apply for Renewal of Business License
3.1 Any insurance company that fails to apply for the renewal of its business license within one month after the expiry date of such license shall be subject to a fine of Birr 500 (Five hundred Birr).
3.2 Any insurance auxiliary or actuary that fails to apply for the renewal of the business license within one month after the expiry date of such license shall be subject to a fine of Birr 150 (One hundred fifty Birr).
- Sanction against Failure to Maintain Valid Professional Indemnity Insurance Policy
4.1 The Bank shall cancel the license of any insurance auxiliary or actuary who fails to maintain valid Professional Indemnity Insurance Policy at all times.
4.2 For the purpose of ensuring compliance with the requirement of sub-article 4.1 of this article, an insurance auxiliary or actuary shall promptly file with the Bank a copy of the valid Professional Indemnity Insurance Policy upon its renewal.
4.3 Sub-article 4.1 of this article does not apply to insurance auxiliaries who hold deposits with the Bank or have pledged property as guarantee.
- Waiver
The Bank may waive the sanction specified under sub-article 4.1 hereinabove on grounds it considers to be acceptable.
- Effective Date
These Directives shall be effective as of the 1st day of August 1998.
TEKLEWOLD ATNAFU GOVERNOR NATIONAL BANK OF ETHIOPIA