Third Schedule. (INSURANCE ACT, 1963

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

Third Schedule.

(Section 20 (5))

DEPOSITS BY ASSOCIATIONS OF UNDERWRITERS

1. An association of underwriters, in order to comply with subsection (4) of section 20, shall make a deposit with the AccountantGeneral ‡ of a value of three hundred thousand dollars.

2. Not later than the end of June In each calendar year after 1963 there shall be made such additional deposit, if any, as is necessary to secure that the aggregate value of the deposit is not less than fifty-five per cent of the premiums received by members of the association in respect of Federation policies in the preceding calendar year:

Provided that this paragraph shall have effect with the substitution for the words "fifty-five per cent."-

(a)

as respects any additional deposit in the year 1964, of the words "twenty-five per cent"; and

(b)

as respects any additional deposit in the year 1965, of the words "thirty-five per cent"; and

(c)

as respects any additional ,deposit in the year 1966, of the words "forty-five per cent".

3. Subject to any direction of the Minister under sub-section (4) of section 20, the Accountant-General ‡ shall retain any deposit under this paragraph unless and until the Commissioner is satisfied, and certifies, that insurance business is no being carried on in the Federation by any members of the association, and shall then transfer the amount of the deposit to the association except such part (if any) as the Minister directs to be kept available for meeting any such claims as are mentioned in that sub-section.

4. Sub-sections (2), (3), (6) and (7) of section 7 shall apply, with any necessary adaptations, in relation to a deposit by an association under this Schedule as they apply in relation to a deposit by an insurer under that section.

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‡ 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.LIN. 470/64.