Insurance Regulations

SECTION 81 - THE INSURANCE REGULATIONS
Regulations by the Minister

1. These Regulations may be cited as the Insurance Regulations.

2. (1) For the purposes of section five of the Act, an insurer other than Lloyd’s shall have a sufficient margin of solvency –

a) in respect of his life insurance business, if his liabilities, including contingent and prospective liabilities, under life policies do not exceed the sum in the life insurance fund or funds maintained by him; and

(b) in respect of his insurance business other than life insurance business, if the total value of his assets exceed that of his liabilities by one hundred thousand kwacha or by one-tenth of his premium income during his last preceding financial year, which ever is the greater, such assets, liabilities and premium income being calculated in accordance with sub-regulation (2)


(2) For the purpose of paragraph (b) of sub-regulation (1)

a) in computing the value of liabilities all contingent and prospective liabilities shall be taken into account but not liabilities in respect of share capital nor liabilities under fire policies;

b) in computing the value of assets no account shall be taken of any sum held in a life insurance fund maintained by the insurer; and