INSURANCE ACT, 1994

(Act 28 of 1994)

I assent

F.A. René President

23rd December, 1994

An Act to provide for the regulation of insurance business in Seychelles and for other purposes relating thereto or connected therewith.

PART I
PRELIMINARY

1. This Act may be cited as the Insurance Act 1994, and shall come into operation on such day as the Minister may, by notice published in the appointment 2.(1) In this Act, unless the context otherwise requires-

"accounting period", in relation to any insurer, means the period for which the insurer makes up the accounts of the insurance business carried on by him in Seychelles; but, unless in any particular case the Authority allows those accounts to be made up for a longer or shorter period, every accounting period shall be a period of 12 months beginning from the commencement of that business or from the end of the proceeding accounting period; and

"Authority" means the Authority established under section 4;

"captive insurance business" means insurance business where the insured is a holding, subsidiary or related company of the insurer;

"Company" and "director" have the same meaning as in the Companies Act;

"Companies Act" means the Companies Act, 1972 or such other law replacing that Act;

"domestic insurance business" means insurance business other than non-domestic insurance business;

"holding or subsidiary company" has the meaning assigned to it in the Companies Act;

"insurance agent" means a person who with the authority of an insurer acts on his behalf in the initiation of insurance business, the receipt of proposals, the issue of policies or the collection of premiums;

"insurance broker" means a person who arranges insurance business with insurers on behalf of prospective policy owners or as a policy owner's representative;

"insurance business" means the soliciting, effecting or carrying out in or outside Seychelles of contracts of insurance as an insurer and includes captive insurance business and reinsurance business and any reference in this Act to carrying on of insurance business include the receipt of proposals for, or issue of, policies of insurance in or outside Seychelles or the collections or receipt in or outside Seychelles of premiums on such policies by the insurer or through an agent or as agent;

"insurance manager" means a person who provides insurance expertise to an insurer carrying on non-domestic insurance business under this Act;

"insurer" means a person carrying on insurance business but does not include an insurance agent or insurance broker;

"non-domestic insurance business" means insurance business exclusively carried on outside Seychelles for the issue of offshore policies;

"principal insurance representative" means a person who maintains for an insurer carrying on non-domestic insurance business under this Act full and proper records of the insurance business of the insurer and who is not being an employee of that insurer;

"qualified actuary" means a Fellow of the Institute of Actuaries in England, a Fellow of the Faculty of Actuaries in Scotland or a Fellow of the Society of Actuaries in America or a person holding an equivalent qualification approved by the Minister;

"registered insurer" means an insurer registered by the Authority under this Act;

"reinsurance" means a contract whereby an insurer insures the risk insured by him, or part of that risk, with another insurer.

"related company" has the meaning given to it in subsection (3);

(2) For the purposes of this Act-

(a) "statutory balance-sheet" and "statutory valuation" means respectively a balance-sheet lodged with the Authority in order to comply with section 36(1), and a valuation balance-sheet lodged with it on an actuarial investigation made in order to comply with section 37(1);

(b) any reference to the last statutory balance-sheet or to the last statutory valuation shall be construed as referring to that last prepared or made and not superseded by the arrival of the date as at which another is to be prepared or made; and

(c) any reference to there being shown in a statutory balance-sheet or on a statutory valuation a surplus of assets over liabilities of an insurance fund shall be construed accordingly by reference to the prescribed form of balance-sheet or valuation balance-sheet and to the rules to be followed under this Act and regulations in preparing it.

(3) Where a company -

(a) is a holding company of another company;

(b) is a subsidiary company of another company; or

(c) is a subsidiary holding company of another company,

the first mentioned company and the other company shall, for the purposes of the definition of captive insurance, be deemed to be related companies of each other.3.(1) For the purposes of this Act, insurance business shall be divided into of two classes-

(a) life business, which in addition to all insurance business concerned with life policies shall include, in the case of any insurer, any type of insurance business carried on as accidental only to the insurer's other life business and any other long term insurance business; and

(b) general business, that is to say, all insurance business which is not life business.

(2) For the purposes of this Act, the reinsurance of liabilities under insurance policies shall be treated as insurance business of the class and type to which the policies would have belonged if they had been issued by the reinsurer.

(3) Notwithstanding anything in subsections (1) and (2), if the Authority is satisfied that any part of an insurer's business which belongs to a particular class or type of insurance business ought in the insurer's case to be treated as belonging to another class or type, the Authority may direct that it shall be so treated for the purposes of this Act.

(4) The operation, otherwise than for profit, of a scheme or arrangement relating to service in particular offices or employments, and having for its objects or one of its objects to make provision in respect of persons serving therein against future retirement or partial retirement, or against future termination of service through death or disability, or against similar matters, shall not be treated for the purposes of this Act as carrying on the business of insurance.

(5) The definition set out in the Second Schedule shall have effect for the construction of references in this Act to policies of insurance, policy owners and policy moneys.

(6) Notwithstanding anything in subsection (1), the Authority may subdivide insurance business into several sub-classes.