(1) A licensed insurer shall pay to the Bank a levy for an insurance guarantee scheme fund, before the end of June each year or such other date as the Bank may approve, at such rate and in such instalments as the Bank, with the approval of the Minister, may specify.
Penalty: One million ringgit. Default penalty.
(2) The rate to be specified by the Bank under subsection (1) shall be not more than one per cent of the direct premium income of the licensed insurer in respect of its Malaysian policies during the financial year immediately preceding that date.
(3) Where a licensed insurer has not submitted its accounts under subsection 87(1), for the purpose of calculating the amount of levy payable by that licensed insurer, the Bank may collect a provisional amount of levy which shall be adjusted according to the direct premium income in the accounts.
(4) Notwithstanding the revocation of its licence, an insurer shall continue to pay levy to an insurance guarantee scheme fund if it continues to receive premium.
(5) An insurer shall not be entitled to a refund of levy where its direct premium income is negative.
(6) A levy which is payable under subsection (1) shall be a debt due to an insurance guarantee scheme fund.
(7) In subsections (2) and (3), "direct premium income", in relation to-
(a) general insurance business, means the premium charged to policy owners in respect of policies issued to them net of any premium refunded to them, but does not include premium receivable under reinsurance policies;
(b) life business, means the single, first year and renewal premium receivable from policy owners.