ACT 553
INSURANCE ACT 1996

PART XV - MISCELLANEOUS



Section 186. Insurance intermediary.


(1) No person shall invite any person to make an offer or proposal to enter into a contract of insurance without disclosing-

Penalty: One million ringgit. Default penalty.

(2) No person shall arrange a group policy for persons in relation to whom he has no insurable interest without disclosing to each person-

Penalty: One million ringgit. Default penalty.

(3) A licensed insurer shall be liable to the person insured under a group policy if the group policy owner has no insurable interest in the life of the person insured and if the person insured has paid the premium to the group policy owner regardless that the licensed insurer has not received the premium from the group policy owner.

(4) The licensed insurer of a group policy, where the group policy owner has no insurable interest in the lives of the persons insured, shall pay the moneys due under the policy to the person insured or any person entitled through him.

Penalty: One million ringgit.


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