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srilawsby aturio
As enacted
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Part VIII · Registration of Brokers and Insurance Agents

85. Registered broker to take and maintain policies of insurance

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

Every broker shall take out and maintain policies of insurance with two or more registered insurers approved by the Board, against losses arising from claims in respect of any description of civil liability incurred by them or by their present or former employees in connection with the business of such broker.

(2)

Without prejudice to the generality of the foregoing provisions of this section, such policy shall indemnify the insured against losses arising from claims made against the insured for breach of duty in connection with the business, by reason of any negligent act, error, or omission :

Provided that, the policy shall not be required to afford indemnity to any person committing, making or condoning any dishonest or fraudulent act or omission.

(3)

The policy obtained under subsection (1) shall, at the date of renewal of a certificate of registration provide a minimum limit of indemnity in either—

(a)

a total sum of rupees one million five hundred thousand ; or

(b)

a sum equal to three time the brokerage of the business for the last accounting period ending prior to the inception or renewal of the policy, subject to a maximum limit of liability as determined by the

Board.

Regulation of Insurance Industry

(4)

No policy shall, without the written approval of the

Board, have an excess or a deductible in an amount which exceeds 2.5 per centum of the minimum limit of indemnity.

Read on from s 86

Part IX

Offences

Read on from Part IX

Part X

General

Read on from Part X

Schedules