Section 8. Bank covenants in lieu of deposits. (INSURANCE ACT, 1963

(P.M. ACT 1 OF 1963)
INSURANCE ACT, 1963

PART II - CONDUCT OF INSURANCE BUSINESS
Deposits, registers of policies and insurance funds

Section 8. Bank covenants in lieu of deposits.

(1) If, in the case of any insurer, a bank licensed under the Banking Ordinance, 1958, makes with the AccountantGeneral

an agreement in a form approved by the Commissioner, whereby the bank covenants with the Federation to deposit with the Accountant-General

a specified sum in cash on account of the insurer's deposit under this Act in respect of either class of insurance business, and the covenant complies with any requirements the Commissioner sees fit to impose as to the circumstances in which that sum is to be deposited, then for the purposes of this Act the insurer shall be treated as having deposited under section 7 a sum of cash equal to that so covenanted for and the sum so covenanted for shall be recoverable notwithstanding that no consideration is furnished on the agreement.

(2) Any sum deposited by a bank in pursuance of an agreement made under sub-section (1) shall be dealt with under or for the purposes of this Act as if it were a sum deposited by the insurer under section 7.

(3) This section shall not authorise an agreement to be substituted under sub-section (6) of section 7 for assets comprised in a deposit.
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	See also the Insurance (Amendment) Act, 1964 (Act 10/64) in respect of deeds or instruments delivered by a bank to the Accountant-General before the commencement of Act 10/64.
	The amendments made by Act 10/64 now apply throughout Malaysia-See Section 5 of F.L.N. 470/64.
	Subject to the modifications made to sub-section (9) of section 7 references to the Accountant-General shall be construed as references to the Accountant-General of the Federation-See Modification of Laws (Insurance) (Extension) Order,1964, F.L.N. 470/64.