Regulation of Insurance Industry Act 2000

This Act may be cited as the Regulation of Insurance

Industry Act, No. 43 of 2000 and shall come into operation on such date as the Minister may appoint by Order published in the Gazette (hereinafter referred to as the “appointed date”).

ESTABLISHMENT AND CONSTITUTION OF THE INSURANCE BOARD

OF SRI LANKA

There shall be established a board which shall be called the Insurance Board of Sri Lanka (hereinafter referred to as the “Board”) which shall be responsible for the development, supervision and regulation of the insurance industry in Sri Lanka.

The Board shall, by the name assigned to it by subsection (1), be a body corporate and shall have perpetual succession and a common seal and may sue and be sued in such name.

The object and responsibility of the Board shall be, to ensure that insurance business in Sri Lanka is carried on with integrity and in a professional and prudent manner with a view to safeguarding the interests of the policy-holders and potential policy holders.

The Board shall consist of the following members :—

The Minister shall nominate one of the members of the Board as the Chairman of the Board.

The provisions of the Schedule to this Act shall have effect in relation to the term of office of the appointed members its of the Board, remuneration payable to members of the

For the purpose of fulfilling its object and responsibility, the Board may exercise, perform and discharge all or any of the following powers, duties and functions—

register as insurers persons carrying on insurance business in Sri Lanka ;

register persons as insurance brokers ;

advise the Government on the development and regulation of the insurance industry ;

implement the policies and programmes of the

employ such officers and servants as may be necessary for the purpose of exercising, performing and discharging the powers, duties and functions of the Board ;

acquire and hold any property, movable or immovable and sell, lease, mortgage or otherwise dispose of the same ;

enter into all such contracts as may be necessary for the exercise, performance and discharge of its powers, duties and functions ; and

do all such other acts as may be necessary for the due exercise, discharge and performance of its’s powers, duties and functions under this Act.

The Board shall have its own Fund.

There shall be paid into the Fund of the Board—

There shall be paid out of the Fund of the Board, all such sums of money required to defray the expenditure incurred by the Board, in the exercise of its powers, discharge of its functions and performance of its duties.

There shall be charged, levied and paid a cess at such rates as may be determined by the Minister with the(concurrence of the Board from time to time by Order published in the Gazette, on the annual net premium income of every insurer, so however that such rate shall not exceed one half per centum of such annual net premium income.

Every Order made by the Minister under this section shall come into force on the date of its publication in the

The cess imposed under this section shall be in addition to any other tax or cess levied under any other written law.

For the purpose of subsection (1) “annual net premium income” means the gross insurance premium income, less reinsurance premium.

The financial year of the Board shall be the calendar year.

The Board shall cause proper books of accounts to be kept of the income and expenditure, assets and liabilities and all other transactions of the Board.

The provisions of Article 154 of the Constitution relating to the audit of the accounts of Public Corporations shall apply to the audit of accounts of the Board.

The Minister shall, in consultation with the Board, appoint a Director-General of the Board, who shall be its chief executive officer. The conditions of employment including remuneration of the Director-General, shall be determined by the Minister.

The Director-General shall attend meetings of the

The Director-General shall, subject to the general direction and control of the Board, be charged with the direction of the affairs and transaction of all the business of the Board in the exercise, discharge and performance of its powers, functions and duties, and the administration and control of the officers and servants of the Board.

The Director-General may, with the approval of the

The Minister may on the recommendation of the

The Board may appoint such officers and servants as it considers necessary for the efficient discharge of its functions.

The officers and servants appointed under subsection (1), shall be remunerated in such manner and at such rates and shall be subject to such conditions of service as may be determined by the Board.

At the request of the Board, any officer in the public service may, with the consent of the officer and the Secretary to the Ministry of the Minister in charge of the subject of

Where any officer in the public service is temporarily appointed to the staff of the Board, the provisions of subsection (2) of section 14 of the National Transport Commission Act,

Where any officer in the public service is permanently appointed to the staff of the Board, the provisions of subsection (3) of section 14 of the National Transport Commission Act,

Where the Board employs any person who has agreed to serve the Government for a specified period, any period of service to the Board by that person shall be regarded as service to the Government for the purpose of discharging the obligations of that person under such agreement.

At the request of the Board, any officer or servant of a public Corporation may, with consent of such officer or servant and the governing board of such Corporation, be temporarily appointed to the staff of the Board for such period as may be determined by the Board with like consent, or with like consent be permanently appointed to the staff of the Board on such terms and conditions, including those relating to pension or provident fund rights, as may be agreed upon by the Board and the governing board of such Corporations.

Where any person is appointed whether temporarily or permanently under subsection (1) to the staff of the Board, he shall be subject to the same disciplinary control as any officer or servant of the Board.