Section 16. Control of form of proposals, policies, and brochures (INSURANCE ACT, 1963

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

PART II - CONDUCT OF INSURANCE BUSINESS
Miscellaneous requirements as to conduct of business

Section 16. Control of form of proposals, policies, and brochures

(1) The Commissioner may by notice in writing require a Federation insurer to submit to him the forms of proposal and policy for the time being in use by the insurer in the Federation, and any brochure which is for the time being in use there by the insurer for describing the terms or conditions of, or the benefits to be or likely to be derived from, policies; and where the whole or part of any such form or brochure is not in Malay or English there shall be submitted with it a translation in Malay or English.

(2) A requirement under this section, unless it is otherwise provided therein, shall apply to all such forms and brochures as aforesaid coming into use after the making of the requirement and before the Commissioner notifies the insurer that the requirement is withdrawn.

(3) If it appears to the comissioner, after affording the insurer an opportunity to make representations orally or in writing that any such form or brochure as aforesaid contravenes or fails to comply with any provision of this Act, or is in any respect likely to mislead, he may by notice in writing direct the insurer to discontinue the use of the form or brochure in the Federation either forthwith or from a date specified in the notice.

(4) After the end of six months from the commencement of this Act no Federation insurer shall use in the Federation a form of proposal which does not have prominently displayed therein a warning that if a proposer does not fully and faithfully give the facts as he knows them or ought to know them, he may receive nothing from the policy.

(5) For each occasion on which any insurer uses a copy of a form or brochure in contravention of sub-section (3) or (4), the insurer shall on conviction be liable to a fine of one thousand dollars.

(6) In this section "brochure" includes any leaflet, circular or similar advertising matter, whether printed or not.