Regulation of Insurance Industry (Amendment) Act 2017

This Act may be cited as the Regulation of Insurance

Industry (Amendment) Act, No. 23 of 2017.

The long title of the Regulation of Insurance Industry

Act, No. 43 of 2000 (hereinafter referred to as the “principal enactment”) is hereby amended by the substitution for the words “ESTABLISHMENT OF AN INSURANCE BOARD”, of the words “ESTABLISHMENT OF AN INSURANCE

REGULATORY COMMISSION OF SRI LANKA”.

In the principal enactment and in any other written law, there shall be substituted for the words “Insurance

From and after the date of commencement of this Act, every reference to the “Insurance Board of Sri Lanka” in any notice, notification, contract, communication , form or other document shall be read and construed as a reference to the

Section 13 of the principal enactment is hereby amended in subsection (1) of that section, by the substitution for the words “either one or both classes of insurance business”, of the words “general insurance business or long term insurance business”.

The following new sections are hereby inserted immediately after section 15A of the principal enactment and shall have effect as sections 15B, 15c and 15D of that enactment:—

15B. Notwithstanding the provisions of section 15A, the Commission shall, upon being satisfied—

that at least eighty five per centum of shares of the local subsidiary insurance company are held by a foreign holding company listed on a stock exchange outside Sri Lanka and which stock exchange is a member of the World Federation of Exchanges or such other organization recognized by the

the accounts of such local subsidiary insurance company are included in the Group Consolidated Accounts of the foreign holidng company; and

such foreign holding company is legally required by the foreign stock exchange on which it is listed to ensure group level compliance with all regulatory requirements of the foreign stock exchange including the requirement pertaining to the accounts of the local subsidiary insurance company, exempt such local subsidiary insurance company from being listed on a stock exchange licensed under the Securities and Exchange

The National Insurance Trust Fund established under the provisions of the National

The Commission shall, upon being satisfied that a local subsidiary insurance company is held by a company that is listed on a stock exchange licensed under the Securities and Exchange Commission of Sri Lanka Act,

(a) The Sri Lanka Insurance Corporation

No such exemption shall be valid, unless the Sri Lanka Insurance Corporation Limited or any insurance companies formed upon the segregation of the Sri Lanka Insurance

any local subsidiary insurance company of any foreign holding company;

the National Insurance Trust

the entities referred to in subsections (2) and (3) of section 15c of this Act, to comply with any terms and conditions as may be determined by the Commission from time to time.”.

Section 78 of the principal enactment is hereby amended by the repeal of subsection (5) of that section and the substitution therefor, of the following:-

“(5) (a) No person shall be eligible to be appointed as an insurance agent of a broker, if such person is already registered as an insurance agent of another broker or an insurer.

No person shall be eligible to be appointed as an insurance agent of an insurer, if such person is already registered as an insurance agent of a broker.

No person shall be eligible to be appointed as an insurance agent of an insurer for a particular class of insurance business, if such person is already registered as an insurance agent of another insurer for the same class of insurance business.”.

Section 114 of the principal enactment is hereby amended as follows:-

by the insertion, immediately after the definition of the expression “classes of insurance business”, of the following new definitions:—

by the insertion, immediately after the definition of the expression “local authority security”, of the following new definition:—

All contracts, agreements and other instruments of the insurance Board of Sri Lanka subsisting on the day immediately prior to the date of commencement of this Act, shall be deemed with effect from the date of commencement of this Act to be contracts, agreements or other instruments entered into by the Insurance Regulatory Commission of Sri

All suits, actions and other legal proceedings instituted by or against the Insurance Board of Sri Lanka and pending on the day, immediately prior to the date of commencement of this Act, shall be deemed with effect from the date of commencement of this Act to be suits, actions and other legal proceedings instituted by or against the Insurance

All the rights, liabilities and obligations of the

All movable and immovable property vested in the

Every decree, order or judgment entered in favour of or against the Insurance Board of Sri Lanka by any court in any action or proceeding, shall with effect from the date of commencement of this Act, be deemed to be a decree, order or judgment entered in favour of or against the Insurance

For the avoidance of doubt, it is hereby declared that the“Insurance Regulatory Commission of Sri Lanka”, shall for all purposes be deemed to be the successor to the

“Insurance Board of Sri Lanka” established under section 2

of the principal enactment.

In the event of any inconsistency between the Sinhala and Tamil texts of this Act, the Sinhala text shall prevail.

The provisions of section 5 of this Act shall apply to any local subsidiary insurance company of any foreign holding company which holds a valid licence issued on or before February 7, 2011 under section 15 of the principal enactment after having fulfilled where so required the segregation requirements specified in section 53

of Regulation of Insurance Industry (Amendment) Act,

No. 3 of 2011.