Section 69
Section 69
(1)
The Authority shall establish and maintain in accordance with this section and regulations, a Policy Owner’s Protection Fund (referred to in this section as the Fund) for the purposes of indemnifying in whole or in part, or otherwise assisting or protecting, policy owners and others who have been or may be prejudiced in consequence of the inability of registered insurers to meet their liabilities under life policies and compulsory insurance policies issued by them.
(2)
Subject to such exceptions or restrictions as may be prescribed, the Authority shall –
(a)
secure that a sum equal to –
(i)
the full amount of any liability of a registered insurer in liquidation in respect of a sum payable to any person entitled to the benefit under the terms of any compulsory insurance policy, being a liability arising in respect of a liability of the policy owner which is a liability subject to compulsory insurance; and
(ii)
90 per cent of the amount of any liability of a registered insurer in liquidation towards a policy owner under the terms of any life policy which was a Brunei Darussalam policy and not being a contract of reinsurance is paid to the person or policy owner as soon as reasonably practicable after the beginning of the liquidation; and
Incorporating amendments until S 1/2016
(Clean copy) NANI/H.AFIF/fiqah _ as of 3rd July 2020
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BLUV as at 14th January 2016
(b)
make arrangements, so far as reasonably practicable, for securing continuity of insurance for every policy owner of a registered insurer in liquidation or in financial difficulties who is a policy owner in respect of a life policy which was a
Brunei Darussalam policy and not being a contract of reinsurance, and for this purpose the Authority may take measures to secure or facilitate the transfer of the life business of the insurer, or part of that business, to another registered insurer or to secure the issue by another registered insurer to the policy owners of life policies in substitution of their existing policies.
(3)
For the purposes of financing the expenditure of the Fund, regulations may impose a levy on registered insurers carrying on –
(a)
general business in Brunei Darussalam (referred to in this section as a general business levy); and
(b)
life business in Brunei Darussalam (referred to in this section as a life business levy).
(4)
The proceeds of general business levies and life business levies shall be paid into the Fund.
(5)
The amounts required to be paid by any registered insurer under general business levies or life business levies imposed under subsection (3) in any financial year shall not exceed one per cent of any income of the insurer for the year ending last before the beginning of that financial year which income is liable to the general business levy or the life business levy, as the case may be.
(6)
The amount each registered insurer may be required to pay under general business levies imposed in any financial year shall be calculated by reference to the gross premium income of Brunei Darussalam policies of the insurer for the year ending last before the beginning of that financial year in respect of general business carried on in Brunei
Darussalam other than reinsurance business; and any such income is hereinafter in this section referred to, in relation to any registered insurer, as income of the insurer for the year in question which is income liable to the general business levy.
Incorporating amendments until S 1/2016
(Clean copy) NANI/H.AFIF/fiqah _ as of 3rd July 2020
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BLUV as at 14th January 2016
(7)
The amount each registered insurer may be required to pay under life business levies imposed in any financial year shall be calculated by reference to the gross premium income of the insurer for the year ending last before the beginning of that financial year in respect of life business carried on in Brunei Darussalam other than reinsurance business; and any such income is hereinafter in this section referred to, in relation to any registered insurer, as income of the insurer for the year in question which is income liable to the life business levy.
(8)
In subsections (6) and (7), the gross premium income of a registered insurer for any year in respect of any class of insurance business carried on in Brunei Darussalam, other than reinsurance business, means the gross amounts after deducting any return of premiums recorded in the accounts of the insurer during that year as paid or due to the insurer by way of premiums under that class.
(9)
Subject to subsection (10), the proceeds of general business levies may be applied only on expenditure incurred by the Authority under sub-paragraph (i) of paragraph (a)
of subsection (2), and the proceeds of life business levies may be applied only on expenditure incurred by the Authority under sub-paragraph (ii) of paragraph (a) of subsection (2) and paragraph (b) of subsection (2).
(10)
The Authority may deduct from the Fund any expenditure incurred by him in performing his functions under this section.
(11)
Where it appears to the Authority that any circumstances have occurred in relation to a registered insurer incorporated outside Brunei Darussalam which are the equivalent of a registered insurer in liquidation or in financial difficulties under the law relating to companies in force in the country in which it is incorporated, the Authority may treat that insurer as a registered insurer in liquidation or in financial difficulties for the purposes of this section and this section shall thereupon apply to that insurer subject to such modifications as appear to the Authority to be necessary.
Incorporating amendments until S 1/2016
(Clean copy) NANI/H.AFIF/fiqah _ as of 3rd July 2020
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BLUV as at 14th January 2016
(12)
Without prejudice to the generality of section 89, regulations may provide –
(a)
for the imposition, distribution and enforcement of general business levies and life business levies, and other matters in connection with or in relation to those levies; and
(b)
for the investment of such part of the Fund as appears to the Authority to be surplus to its requirements for the time being.
(13)
For the purpose of this section, “compulsory insurance policy” means any policy or security which satisfies the requirements of the Motor Vehicles Insurance (Third
Party Risks) Act (Chapter 90) or the Workmen’s Compensation Act (Chapter 74).
(14)
Any person who fails to comply with this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000, and in the case of a continuing offence to a further fine not $10,000 for every day during which the offence continues after conviction.
Schemes for transfer of business.