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CAP. 41]
Insurance Companies
[1988 Ed.
Requirement under section 35 to make deposit
35A. (1) Without limiting the generality of section 35, a requirement imposed under that section on an insurer may include a requirement that the insurer-
(a) shall make a deposit-
(i) of an amount of money specified in that requirement;
(ii) with a bank, or a bank belonging to a class of banks, specified in that requirement;
(iii) in the name of the Insurance Authority as trustee for the insurer; and
(iv) on a date not later than the date specified in that requirement;
(b) shall place in the custody of the Insurance Authority, on a date not later than the date specified in that requirement, a receipt, or other document, that evidences, to the satisfaction of the Insurance Authority, that the deposit referred to in paragraph (a) has been made;
(c) shall keep the deposit referred to in paragraph (a) free from any charge both on, and from, the day upon which that deposit is made; and
(d) shall not-
(i) take any action; or
(ii) issue any instruction to any bank at which the deposit referred to in paragraph (a) is held from time to time,
which would result in the release of that deposit, or any part of that deposit, to the insurer or to any other person.
(2) Nothing in subsection (1) shall prevent an insurer from using, in such manner as it thinks fit, any interest earned on a deposit made under that subsection by the insurer.
(3) If a charge is created or purported to be created by an insurer at a time when there is in force a requirement under subsection (1), the charge shall, to the extent that it is a charge or purports to be a charge on the deposit referred to in subsection (1)(a) to which the requirement relates, be void against all persons.
(4) For the purposes of this section-
“charge” includes lien, encumbrance, equitable interest and third party rights;
“deposit” includes a renewal of a deposit.
(Added 74 of 1985 s. 2)
Accounts
35B. (1) The Insurance Authority shall cause proper accounts to be kept of all transactions concerning deposits referred to in section 35A(1) and shall cause to be prepared for every financial year a statement of such accounts, which statement shall be signed by the Insurance Authority.
(2) The accounts and the signed statement referred to in subsection (1) shall be audited and certified by the Director of Audit, who may make such report thereon as he may think fit.