Fourth Schedule. (INSURANCE ACT, 1963

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

Fourth Schedule.

FOURTH SCHEDULE

(Sections 22 (1) and (2),23 (1) and (5), 24 (4), 25 (1) and 2)

RETURNS BY INSURERS

PART I

DOCUMENTS TO BE LODGED YEARLY

1. (1) An insurer, to comply with sub-section (1) of section 22, shall lodge such statements of account and other statements as are mentioned in this paragraph.

(2) There shall be lodged for each accounting period-

(a)

by an insurer registered in respect of life business separate revenue accounts in respect of any home service business and in respect of any ordinary business of the insurer, and by an insurer registered in respect of general business a revenue account in respect of that business; and

(b)

by any insurer a profit and loss account for the whole of the insurer's business;

together with separate balance sheets, as at the end of that accounting period, for each class of insurance business in respect of which the insurer is registered:

Provided that in the case of a company incorporated or established outside the Federation, the accounts and balance sheets need not show the results of or relate to business other than insurance business for which the company maintains an insurance fund under this Act.

(3) There shall be lodged-

(a)

by an insurer registered in respect of life business, statements for each accounting pehod giving as regards policies belonging to that class of business particulars-

(i) as to the issue of new policies during the period; and

(ii) as to the termination or reduction of the liability, or of the premiums, on policies during the period, and transfers of policies to or from the register during the period; and

(iii) as to policies in force at the end of the period;

(b)

by an insurer registered in respect of general business, statements for each accounting period giving as regards policies belonging to that class of business particulars as to premiums and claims;

(c)

by an insurer registered in respect of either class of business, a statement for each calendar year giving particulars as to the assets held at the end of the year as assets of the insurance fund maintained for that class of business.

*(4) An existing insurer shall also, on establishing its insurance fund under this Act for either class of business, lodge a statement giving particulars as to the assets allocated to that fund under sub-section (9) of section 10.

(5) In the case of an existing insurer, the first statements under subparagraphs (2) and (3) shall relate to the initial accounting period or, in the case of the statement of the assets of an insurance fund, to the year 1963.

(6) Regulations may modify sub-paragraph (3) (c) so that it requires statements of the assets of an insurance fund to be made for parts of a calendar year instead of entire years.

(7) The statements required by sub-paragraph (3) (c) and by subparagraph (4) shall be excepted from sub-sections (1) and (2) of section 25.

2. (1) With any accounts and balance sheet lodged under paragraph 1 there shall be lodged a certificate of the auditor signed by him and stating whether in his opinion-

(a) the accounts and balance sheet are in accordance with the provisions of this Act; and I

(b)

the balance sheet truly represents the financial position of the insurer; and

(c)

the books of the insurer have been properly kept and record correctly the affairs and transactions of the insurer:

Provided that where the audit does not extend to the whole business of the insurer the certificate shall, a regards paragraphs (b) and (c) above, be given subject to the appropnate limitation.

(2) The certificate of the auditor shall also state

(a)

Whether in the relevant accounting period any part of the assets of the insurance fund or funds maintained under this Act has been applied in contravention of section 10, and whether during that period section 11 has been complied with in relation to those assets and any assets falling within subsection (5) of that section; and

(b)

as regards the documents evidencing the insurer's title to any such assets whether he has inspected such of those documents as are held by or on behalf of the insurer within the Federation, and whether he has received satisfactory information as to the whereabouts and custody of any others, specifying whether the insurer is complying with the requirements of sub-section (1) of section 12; and

(c)

whether all necessary and proper apportionments have been made in preparing the accounts and balance sheet, and have

been made in an equitable manner.

PART II

DOCUMENTS TO BE LODGED ON ACTUARIAL INVESTIGATION OF LIFE BUSINESS

3. (1) An insurer registered in respect of life business, in order to comply with sub-section (1) of section 23 in the case of any actuarial investigation, shall lodge such documents as are mentioned in this paragraph.

(2) There shall be lodged an abstract of the actuary's report, which shall be signed by the actuary and shall incIude-

(a)

a summary and valuation of the policies as at the date of the investigation; and

(b)

a valuation balance sheet as at that date of the business to which the report relates.

(3) There shall be lodged a certificate by the actuary, signed by him, that he has satisfied himself as to the accuracy of the valuations made for the purposes of the investigation and as to their being made in accordance with this Act, and as to the accuracy of the data on which they are based:

Provided that, if the actuary is not a permanent officer of the insurer, the certificate shall, so far as relates to the accuracy of the data on which the valuations are based, be given and signed by or on behalf of the insurer's principal officer in the Federation, and the actuary shall in his part of the certificate state the precautions taken by the actuary to ensure the accuracy of the data.

(4) There shall be lodged statements signed by the actuary analysing as at the date of the investigation the position as regards policies and premiums of the business to which the report relates.

**4. An existing insurer, in order to comply with sub-section (5) of section 23, shall lodge, in respect of policies belonging to the life business for which the insurer has established an insurance fund under this Act. a summary and valuation prepared and signed by a qualified actuary of those policies as at the beginning of the initial accounting period, together with the like certificate as is required by sub-paragraph (3) of paragraph 3.

PART III

LODGMENT, FORM AND CONTENTS

5. (1) A document to be lodged by an insurer shall be lodged by sending to the Commissioner five copies, of which (unless the document itself is required by this Schedule to be signed) one copy at least shall be signed by two of the insurer's directors and by or on behalf of the insurer's principal officer in the Federation.

(2) The persons signing any balance sheet shall certify that in their belief the assets set forth in the balance sheet are fully of the value stated in the balance sheet, less any investment reserve fund taken into account; and they shall also either certify that in the relevant accounting period no part of the assets of the insurance fund maintained under this Act has been dealt with in contravention of section la, and during that period section 11 has been complied with in relation to those assets and any assets falling within sub-sectio (5) of that section, or state the exceptions.

(3) The persons signing a balance sheet in respect of life business shall certify that in the relevant acconting period the provisions of subsection (4) of section 44 with respect to deposits of balance of policy monies with the Treasury have been complIed wIth.

6. (1) Subject to sub-paragraphs (2) and (3), a document shall be lodged within six months after the relevant date, or wIthin such longer period as the Commissioner may allow (but not exceeding, except in the case of the documents to be first lodged by an existing insurer, nine months from the relevant date); and for this purpose the relevant date is the date to which the document relates or, in the case of an account or statement for an accounting period, the end of that period.

(2) Any such statement of the assets of an insurance fund as is required by sub-paragraph (3) (c) of paragraph 1 shall be lodged within three months of the date to which the statement relates.

***(3) The documents required from, an existing insurer by subparagraph (4) of paragraph 1 or by paragraph 4 shall be lodged within the first six months of the Initial accounting period or wIthin such longer period as the Commissioner may allow.

7. A document shall be in Malay or English, and shall (as regards all five copies) be either printed or, with the permission of the Commissioner, produced by other mechanical means approved by him.

8. Where by this Schedule a document is required to be signed by or on behalf of the insurer's principal officer in the Federation, it shall, if not signed by that officer, be signed by one of the insurer's officers in the Federation who is for the time being notified to the Commissioner as having authority for the purposes of this Schedule to sign in place of the principal officer in the Federation.

9. (1) Subject to the following sub-paragraphs, a document shall be in the prescribed form and contain the prescribed particulars, and be prepared in accordance with any such rules as may be prescribed (induding rules for the way in which any valuation is to be made or in which any item is to be dealt with).

(2) The Commissioner may in any particular case permit such departure as he thinks fit from any, requirement of regulations under sub-paragraph (1), if he is satisfied that the purpose of the document in question will nevertheless be substantially fulfilled.

(3) Without prejudice to sub-paragraph (2), where an abstract is to be lodged of an actuary's report on an investigation made otherwise than to comply with sub-section (1) of section 23, the abstract may conform with regulations under sub-paragraph (1) subject to any modifications which the Commissioner may approve, having regard to the purpose of the actuary's investigation and the form and contents of his report.

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*In its application to Sabah and Sarawak, this paragraph shall effect as if for the words "An existing insurer shall also, on establishing its insurance fund" there were substituted the words "A pre-registered insurer shall also, on adding assets to its insurance fund"-See Modification of Laws (Insurance) (Extension) Order, 1964, F.L.N. 470/64.

** In its application to Sabah and Sarawak-

(i) substitute for the words appearing before the words "a summary and valuation" the words "A pre-registered insurer, in order to comply with sub-section (5) of section 23 (as modified in its application) shall lodge in respect of policies added at the beginning of the modified initial accounting period to the register of life insurance policies established under this Act"; and

(ii) insert immediately before the words "initial accounting period" the word "modified".

See Modification of Laws (Insurance) (Extension) Order. 1964, F.L.N. 470/64.

*** In its application to Sabah and Sarawak, this sub-paragraph shall have effect with the substitution of the word "pre-registered" for the word "existing" and the insertion of the word "modified" before the words "initial accounting period".

See Modification of Laws (Insurance) (Extension) Order. 1964, F.LN. 470/64.