INSURANCE ACT, 1994

SECOND SCHEDULE

DEFINITION OF INSURANCE TERMS

1.(1) "Policy" includes any contract of insurance whether or not embodied in or evidenced by an instrument in the form of a policy, and references to issuing a policy shall be construed accordingly

(2) References to a policy of an insurer include any policy in respect of which the insurer is under any liability, whether the policies were issued by the insurer or the liability was transferred to the insurer from another.

2.(1) Subject to this paragraph and section 15(3) and (4) of the Act, "Seychelles policy", in relation to any insurer, means a policy issued in the course of the insurer's business in Seychelles and falling within one of the following descriptions:

(a) a life policy or personal accident policy in the case of which, at the date of issue of the policy and (if the policy was issued before then) at the date of the establishment of the insurer's register of Seychelles policies, the policy owner's address is or was an address in Seychelles;

(b) in relation to direct general insurance (other than personal accident policies) and facultative general reinsurance, a policy in the case of which the risk arises in Seychelles or where the insured in a person resident in Seychelles or is a permanent establishment in Seychelles; and

(c) in relation to treaty general reinsurance, a policy in the case of which more than 25% of the total risk in terms of gross premiums arises in Seychelles.

(2) "Offshore policy", in relation to any insurer, means any policy, other than a Seychelles policy, issued in the course of the insurer's business under this Act.

(3) For the purposes of this paragraph-

(a) any policy belonging to the insurer's life business shall be deemed to be a life policy; and not to be a policy of any other description;

(b) "policy owners address" means the address for the time being known to the insurer as the address (or normal address) for communicating with the policy owner about the policy;

(c) "resident in Seychelles" and "permanent establishment" have the same meaning as in the Business Tax Act 1987; and

(d) where any risk is in transit in Seychelles it shall be deemed to be a risk outside Seychelles,

but sub-paragraph (1) (a) shall apply to a policy of reinsurance as if the references to the date of issue of the policy and to the policy owner's address referred to those of the policy under which the liability reinsured ultimately arises.

3. "Policy owner" means, where a policy has been assigned, the assignee for the time being and, where they are entitled as against the insurer to the benefit of the policy, the personal representatives of a deceased policy owner.

4. "Policy moneys" includes any benefit, pecuniary or not, which is secured by a policy, and "pay" and other expressions, where used in relation to policy moneys, shall be construed accordingly.

5. "Life policy" means any policy by which payment of policy moneys is insured on death (otherwise than by way of insurance against personal accident, disease or sickness only) or on the happening of any contingency dependent on the termination or continuance of human life, and includes a policy which is subject to payment of premiums for a term dependent on the termination or continuance of human life and a policy securing the grant of an annuity for such a term.

6.(1) "Home-service policy" means a life policy in respect of which premiums are contracted to be paid at intervals of less than two months and are, of have been, ordinarily collected in the course of door-to-door collections made by person employed for the purpose, but shall not include in relation to any insurer any description of policy which the Authority directs is not to be treated as a home-service policy.

(2) "Ordinary policy" means a life policy which is not a home service policy.

(3) A paid-up policy granted in place of a home-service policy is to be treated as a home-service policy, unless the grant is made in pursuant of an agreement of option providing of r it to be treated as an ordinary policy.

7. "Participating policy" means a life policy conferring any right to share in the profits or surplus arising from the business of the insurer or any part of it, and "non-participating policy" means a life policy not conferring any such right.

8. "Marine, aviation or transit insurance policy" means a policy of insurance-

(a) upon vessels or aircraft, or upon the machinery, tackle, furniture or equipment of vessels or aircraft;

(b) upon goods, merchandise or property of any description whatever on authority vessels or aircraft;

(c) upon the freight of, or any other interest in or relating to, vessels or aircraft;

(d) against damage arising out of or in connection with the use of vessels, or aircraft, including third-party risks;

(e) against risks incidental to the Constitution repair or docking of vessels, including third party risk; or

(f) against transit risks (whether the transit is by sea, inland water, land or air, or partly one and partly another) including risks incidental to the transit insured from the commencement of the transit to the ultimate destination covered by the insurance.

9. "Personal accident policy" means a policy of insurance upon the happening of personal accidents, whether fatal or not, disease or sickness, or any class of personal accidents, disease or sickness.