26. Solvency margin

Every insurer shall maintain in respect of each class of insurance business, a solvency margin of such amount as may be determined by the Board in respect of that class of insurance business, by rules made in that behalf.

Rules may be made by the Board to provide for the determination of the value of the assets and their admissibility and the amount of the liabilities for the purpose of determining the solvency margin to be maintained in respect of the class of insurance business being carried on by any such insurer.

For purpose of ensuring the avoidance of mismatching of assets as against liabilities by insurers, the Board may, from time to time by rules made in that behalf, lay down criteria to be made applicable in determining the minimum limits of their assets as against their liabilities.