Section 30

In determining the amount of liabilities under sub-regulation (1), all contingent and prospective liabilities shall be taken into account but not liabilities in respect of share capital.

The amount of reserves for unearned premiums in respect of general business shall be -

{a}

subject to paragraphs {b) and {c), an amount calculated on a basis not less accurate than the one-twenty-fourth method;

{b) in the case of direct insurance business relating to cargo policies, at the election of the insurer, an amount not less than 25 per cent of the premiums for those policies or an amount calculated on a basis not less accurate than the one-twenty-fourth method; and

{c)

in the case of reinsurance business, at the election of the insurer, an amount not less than 25 per cent of the premiums in the case of marine and aviation policies or 40 per cent of the premiums in other cases or an amount calculated on a basis not less accurate than the one-twenty-fourth method.

1090

For the purposes of sub-regulation (3) -

"marine and aviation policy" means a policy of insurance -

(a} upon goods, merchandise or property of any description transported on board vessels, aircraft or other means of conveyance including incidental transit before and after shipment;

(b} upon the freight of, or any other interest in or relating to vessels, aircraft or other means of conveyance;

(c} upon vessels or aircraft, or upon machinery, tackle furniture or equipment of vessels or aircraft;

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

(e} against risks incidental to the construction, repair or docking of vessels, including third-party risks;

"premiums" means the net amount of the premiums receivable in the accounting period after deduction of return premiums and payments in respect of reinsurances or retrocessions, except that no deduction shall be made in respect of reinsurances other than reinsurances with a registered insurer or insurer authorised under the Order and reinsurances of special risks, unless the deduction is made against a reinsurer's deposit equivalent to the reserve calculated in accordance with sub-regulation (3);

"the one-twenty-fourth method" means the method of computation which operates on the assumption of premiums accounted during each month of a year being uniformly spread over the respective month and on the assumption that all policies are for a duration of 12 months.

Withdrawal from insurance fund in respect of life policy removed from register of Brunei

Darussalam policies.