INSURANCE ACT, 1994

PART V
MISCELLANEOUS AND GENERAL

49. The Authority may with approval of the Minister authorise or appoint of assistants any person to assist it in the exercise of its functions and duties under this Act, either generally or in any particular case.

50.(1) The Minister may, subject to such condition as he thinks fit, exempt any person or class of persons from any or all of the provisions of this Act.

(2) An exemption granted under this section may be withdrawn by the Minister at any time.

51.(1) Not later than the end of April in any calendar year the Authority reports shall prepare and submit to the Minster a report on the working of this Act during the preceding calendar year.

(2) The Authority shall include in its report under this section for any year copies or summaries of documents lodged with it in that year under sections 36 and 37, other than documents excepted from section 39 (1 ) and (2), and may include copies or summaries of documents accompanying those lodged; and it may also include in the report such notes on any such documents or summaries as it thinks fit, and copies of any correspondence between it and an insurer about any such documents lodged by or received from the insurer.

52.(1) Regulations may provide for the collection by or on behalf of the Authority, at such intervals or on such occasions as may be prescribed, of statistical information as to such matters relevant to insurance as may be prescribed, and may provide for the collection and use of such information for any purpose, whether or not connected with insurance.

(2) Such regulations may make provision for requiring registered insurers, insurance brokers and insurance agents to furnish to the Authority, in the prescribed form, such information as may be prescribed.

(3) No use shall be made of any information obtained by or on behalf of the Authority by virtue only of this section except in a form which does not disclose the affairs or any particular person.

53. For the purposes of this Act, a letter containing a notice or other notices document to be served by the Authority under this Act shall be deemed to be addressed to the proper place if it is addressed to the place of which the addressee last indicated to the Authority as his address or to the addressee's latest address known to the Authority.

54.(1) Any person who-

(a) signs any document lodged with the Authority under section 34(1), 36, 37 or 48 (1) (a); or

(b) furnished the Authority with any information under or for the purposes of any other provision of this Act,

shall use due care to secure that the document or information is not false in any material particular; and in he does not use due care in this behalf and the document or information is false is a material particular, he is guilty of an offence and is liable on conviction to a fine of R60,000 and to imprisonment for a term of 2 years.

(2) Any person who is guilty of any breach of a duty imposed on him by this Act is, in a case where no other punishment is provided for by this Act is, or by the regulations, liable on conviction to a fine of R15,000 and if the offence is continued after conviction to a further fine of R3,000 for each day during with the offence is so continued.

(3) Where an offence under this Act or any regulations made thereunder is committed by any company or body corporate, any person who at the time of the commission of the offence is a director, manager, secretary or other similar officer of that company or body, or is purporting to act in that capacity, is guilty of the offence unless he proves that he exercised all such diligence to prevent the commission of the offence as he ought to have exercised, having regard to the nature of his functions in that capacity and to all the circumstances.

(4) Where an offence under this Act is committed by a company or body corporate, being an offence consisting in the breach of a duty imposed only on companies and bodies corporate, any individual guilty of the offence (whether by virtue of subsection (3) or otherwise) is liable on conviction to imprisonment for a term not exceeding one year in addition to or in substitution for any fine.

(5) For the purpose of any proceedings for an offence under subsection (1) (a), a document purporting to be signed by any person shall be presumed to have been signed by him, unless the contrary is proved.

55.(1) Any proceedings for an offence under this Act may be instituted in of courts the Supreme Court or, subject to the limitations set out in the Criminal Procedure Code, in a Magistrates' Court.

(2) On an appeal to the Supreme Court under this Act, the Supreme Court may affirm, vary or reverse any decision appealed against or make such other order as it may deem fit.

(3) The Authority shall give effect to any decision or order made on an appeal under this Act.

(4) The Chief Justice may make rules governing the procedure in appeals under this Act to the Supreme Court and till such rules are made the rules governing civil appeals from the Magistrates' Court to the Supreme Court shall apply.

56.(1) A life policy insuring the life of anyone other than the person interest or a person connected with him as mentioned in required subsection (2) shall unless the person effecting the insurance has an insurable interest in that life at the time the insurance is effected; and the policy moneys paid under such a policy shall not exceed the amount of that insurable interest at that time.

(2) For the purpose of subsection (1), persons connected with a person effecting the insurance, are the wife or husband, of the person effecting the insurance, the child, being under the age of majority at the time the insurance is effected, of that person and anyone who is at that time wholly or partly dependent on that person.

(3) In this section, "insuring the life of a person" means insuring the payment of money (or the equivalent) on that person's death or on the happening of any contingency dependent on the termination or continuance of that person's life, and includes granting an annuity to commence on that death or at a time to be determined by reference thereto or to any such contingency.

(4) In so far as in the case of any life policy the policy moneys do not consist wholly of a cash payment due on the death in question, the limit under this section on the amount to be paid shall be applied by reference to the value of the right to the policy moneys immediately after the death or the happening before the death of any event on which they become payable.

(5) This section shall not affect policies issued before the commencement of this Act.

57.(1) Notwithstanding any law to the contrary, a person over the age of 10 years shall not by reason only of being under the age of majority lack the insure capacity to enter into a contract of insurance; but a person under the age of 18 years shall not have the capacity to enter into such a contract except with the consent in writing of his parent or guardian.

(2) This section shall be deemed always to have had effect.

58.(1) Any policy moneys payable under a life policy or moneys payable on moneys to the surrender of a life policy shall be paid without any deduction for sums be paid not due under the policy or under an agreement charging them on the policy, without unless the deduction is made with the consent of the present entitled to those moneys; and any provision contained in a life policy or in any agreement relating thereto shall be void, in so far as it entitles the insurer to make any such deduction without that consent.

(2) Subsection (1) shall apply to all Seychelles policies, but shall not apply to any other policy issued before the commencement of this Act.

(3) In any proceedings for the recovery of policy moneys due under the life policy or of moneys payable on the surrender of a life policy, no set-off or counterclaim shall be allowed except for sums due under the policy or under an agreement charging them on the policy.

59.(1) Where a life policy has been in force, in the case of a home service (surrenders: policy, for 6 years or more, or, in the case of an ordinary policy, for 3 years non-payment or more, the policy owner may by notice in writing to the insurer surrender or the policy and shall thereupon become entitled to receive the surrender value thereof, determined in accordance with such rules as may be prescribed (but policies subject to any deduction for sums due under the policy or under an agreement charging them on the policy).

(2) Where a life policy has been in force for 3 years or more, the policy shall not lapse or be forfeited by reason of the non-payment of premiums, but shall have effect subject to such modifications as to the period for which it is to be in force or the benefits receivable thereunder or both as may be determined in accordance with any system adopted by the insurer and applicable to the policy; and

(a) in the case of a policy as a Seychelles policy or as an offshore policy issued after the commencement of this Act, the system shall require the approval of the Authority, and shall be that adopted and applicable at the time the policy is issued, and the policy shall contain a statement in a form approved by the Authority of the effect of this subsection in relation to the policy; and

(b) in any other case, unless the system is determined by the policy, the system shall be that which at the time when this section becomes applicable to the policy would apply to a like policy then issued as a Seychelles policy.

(3) Where a life policy has been in force for 3 years or more, the policy owner may by notice in writing to the insurer elect to exchange the policy for a paid-up policy, which shall be a non-participating policy for an amount determined in accordance with such rules as may be prescribed, but with no other modification not required by this Act or some other written law.

(4) A policy issued in place of an earlier policy shall for the purposes of this section (including this subsection) be treated as having been in force since earlier policy began to be in force; but shall not affect the operation in relation to a policy of subsection (2) (a) or (b).

(5) Subsections (1) to (3) shall not apply-

(a) to a policy securing the grant of an annuity for a term dependent upon human life; or

(b) to a policy under which no policy moneys are necessarily payable, not being a policy which provides for the payment of policy moneys on a death after a specified period.

(6) As respects policies of any prescribed description subsections (1) to (3) shall have effect subject to such modifications as may be prescribed.

(7) The rights conferred by this section shall be in addition to, and not in derogation of, any other rights available to the policy owner under the terms of the policy or otherwise; but this section shall not be taken to confer on a policy owner any rights except against the insurer as such.

(8) This section shall apply to policies whenever issued; and, subject to subsection (5), shall extend to any Seychelles policy and offshore policy.

60.(1) In any case where the policy owner of any life policy or personal accident policy of an insurer dies, and the policy moneys are payable thereunder on his death, the insurer may make payment to any proper accidental prescribed amount of the policy moneys of all such policies issued claims without by the insurer on the deceased's life without the production of any probate probate, etc.. or letters of administration; and the insurer shall be discharged from all liability in respect of the amount paid.

(2) In this section "policy owner" includes a part owner of a policy, and "proper claimant" means a person who claims to be entitled to the sum in question as executor of the deceased, or who claims to be entitled to that sum (whether for his own benefit or not) and is the widower, widow, parent, child, brother, sister, nephew or niece of the deceased; and in deducing any relationship for the purposes of this subsection an illegitimate person shall be treated as the legitimate child of his actual parent.

61.(1) A policy of insurance effected by any person on his own life and for benefit expressed upon the face of it, or by a subsequent declaration or arrangement, of wife, to be for the benefit of his wife, and of his children, legitimate or children or acknowledged, and of his grandchildren or of anyone or more them, grandchildren in such shares or amounts as he shall deem fit, anything to the contrary in any other law notwithstanding, shall be good and valid without it being necessary to insert the names of the wife, children or the grandchildren in such policy,declaration or assignment.

(2) In case all the parties in favour of whom a policy, declaration or assignment referred to in subsection (1) shall have been made shall predecease the assured, such policy shall revert to the assured.

(3) The amount of any policy referred to in subsection (1) shall not form a part of the estate of the assured but shall belong to the parties in favour of whom the policy, declaration or assignment shall have been made.

62. When building, chattels, goods, crops or any other property shall have of amount been insured against fire or any other casualty, the sum which, in case of the of policy casualty happening shall be recorable under the policy of insurance from the in certain insurer, shall accrue to the holders of such privilege or mortgage claim as cases may encumber the property so insured, according to the rank of such claims, if that sum is not applied to the repair of the damage done.

62A. The Authority or any person authorised or appointed under section 49 shall not disclose any information relating to any application for registration or approval under this Act, or to the affairs of a registered insurer or a policy owner which the Authority or the person has acquired in the performance of duties or exercise of functions under this Act-

(a) except in the performance of the duties or exercise of the functions under this Act; or

(b) except on an order of the Supreme Court made for the purpose of any inquiry or trial into or relating to the trafficking of narcotics and dangerous drugs, arms trafficking or money laundering on application made by the Attorney-General on proof to the Court that the information is bona fide so required.

62B.(1) Where a person agrees in writing to a contravention of this Act which is an offence punishable on conviction with a fine or a fine and imprisonment, the Authority may, in consultation with the Minister, compound the offence by accepting a sum of money not exceeding 60 percentum of the maximum fine specified for the offence.

(2) Any money accepted under subsection (1) shall be paid into the Policy Owners Protection Fund established under section 45.

(3) Where an offence is compounded under subsection (1) no proceedings shall be instituted in relation to that offence against the person referred to in subsection (1).

63. The Minister may make regulations for-

(a) carrying into effect the provision of this Act;

(b) prescribing anything which under this Act is to be prescribed;

(c) amending the Schedules;

(d) in respect of non-domestic insurance business; and

(e) matters incidental to, or conducive of, its purposes.

64. The Acts or section or Part of any Act specified in the First Schedule are hereby repealed.

65.(1) Subject to subsection (2) the laws specified in the Third Schedule shall not apply to a registered insurer carrying on non-domestic insurance business under this Act.

(2) Subsection (1) shall, in relation to a registered insurer carrying on non-domestic insurance business under this Act, continue in force for a period of 20 years from the date of registration of the insurer under this Act.

(3) Notwithstanding subsection (1), an insurer carrying on non-domestic insurance business under this Act may, within a period of 3 months, or such extended period as may be allowed by the Commissioner of Taxes, from the commencement of a year of assessment elect, in the form provided by the Commissioner of Taxes, for the levy of business tax under the Business Tax Act on the taxable income of the non-domestic insurance business of the insurer for that year of assessment at a rate to be agreed upon between the insurer and the Commissioner of Taxes.

66. On the repeal of the Insurance Compensation (Fund) Act by section 64-

(a) the Board of Trustees appointed under that Act shall stand dissolved;

(b) the assets and liabilities, of the Insurance (Compensation) Fund established under that the Act, other than the liabilities in respect of claims referred to in paragraph (d), shall, with effect from the date or repeal of that Act, stand transferred to and be vested in, the Fund under this Act and the Authority shall have all necessary power to deal with such assets and liabilities;

(c) all claims made to the Board under that Act for compensation of damage arising out of the use of a motor car and pending on the date of repeal of that Act shall stand transferred to the Authority and be dealt with as if they were applications made under this Act for payment out of the Fund.

(d) all claims made under that Act for compensation of damage caused by natural disasters and pending on the date of the repeal of that Act shall stand transferred to the Authority and be dealt with as if they were applications made under this Act for payment out of the Fund.